Maithan Alloys Limited Sustainable Business Performance in 9M FY20
News Correspondent, abptakmaa, Kolkata, 29th Jan 2020 : Maithan Alloys Limited, India’s largest manganese alloy producer and exporter announced its Unaudited Financial Results for the quarter and nine months ended 31st December, 2019
Business Highlights for 9M FY20
· Revenue from Operations for the first nine months of FY20 stood at Rs. 1,425 crores of which our Manufacturing Revenues was at Rs. 1,302 crores.
o Despite slowdown in the steel industry, we were able to maintain our topline. Currently, we are optimally utilising all our capacities.
· Manufacturing EBITDA for the nine months stood at Rs. 173 crores with margin at 13.3%.
o Margins were impacted on account of market slowdown and the current volatile market
o We have manged to maintain the margins in the range of our Sustainable long-term EBITDA margin even in this challenging environment
· Profit After Tax (PAT) stood at Rs. 158 crores with margin of 11.1%
Greenfield Capex Update
The Company has incorporated a wholly owned subsidiary to take up the expansion project, primarily for manufacturing of manganese based ferro alloys.
This shall enjoy the tax benefits recently announced by the Government of India.
Update on Investment in Market Linked Debentures (MLD)
The Company had invested in market linked debentures with CITICORP, IIFL and Piramal Enterprises totally to Rs. 470.43 crores. All the 3 MLDs have matured between October 2019 and January 2020 and we have realised all monies due.
Commenting on the results and performance, Mr. Subodh Agarwalla, Whole-time Director and CEO said:
“Over the past few months, there have been a lot of uncertainties in the domestic steel industry. Steel prices have dropped rapidly on the backdrop of demand slowdown. However, despite the domestic slowdown and a sluggish market environment, our volumes remain intact and we were able to optimally utilise our capacities. We were able to maintain healthy Margins.
With the rapid economic and infrastructural development in India, the demand of steel has seen substantial increase and it is expected to increase further in future as India embarks to become a US $ 5 trillion economy by 2024. India is determined to raise the per capita consumption of steel from its current lows of 72 kg per capita to 160 kg per capita by 2030. Furthermore, India is committed to spend about US $ 1.4 trillion on its infrastructure development in the next five years. All these above trends augur well for the steel demand in the country. With the steel industry set to grow, the demand for ferro alloys will grow at a much faster pace going ahead.
Indian steel companies are of the view that the steel prices have bottomed out. Companies are hoping for a revival in demand. They expect demand to revive in FY21, with the government’s renewed measures for infrastructure.
At Maithan, our aim is to consistently outperform the industry. We believe that sustainability is derived from a stronger product mix. We have been continuously improving our cost efficiencies. Over the years, we have increased the share of customised products in our portfolio, invested in strict process consistency by adopting new processes that are best in the industry and invested deeper in client relationships.
With a complete basket of ferro alloys product, strong relationship with the customers and financial flexibility, we feel Maithan continues to be at a sweet spot and will be in a position to grow faster than the Industry.”
