To,
Shareowners,
It gives me immense pleasure to extend a warm welcome to you all to the 31st Annual
General Meeting of your company.
In view of the Circulars issued by the Ministry of Corporate Affairs, AGM is being held
through Video Conferencing (VC) or Other Audio Visual Means (OAVM). Before I speak to you
about the performance of your company, let me briefly highlight the economic scenario in
which your Company is operating.
The Steel Sector plays a pivotal role in crucial sectors such as construction,
infrastructure, engineering, and defence sector. Over the years the steel sector has
witnessed tremendous growth. The country is now a global force in steel production and the
2nd largest crude steel producer in the world.
Hon'ble Finance Minister in Budget 2022-23 focused on giving the necessary push to the
economy by investing in various infrastructure projects. For Infrastructure development
Rs.10.00 Lakh has been allocated in the Budget 2022-23. This allocated limit is 3% of the
GDP and the amount is three times more from 2019. Similarly. The Ministry of Road
Transport and Highways saw a 36% growth in its budget to about Rs.2.70 Lakh crore. It is
assumed that in the upcoming Budget, the infrastructure sector will receive a similar
amount to reach India's goal of becoming a USD 5 trillion economy by 2025.
With the rising demand for steel in modern architectures, the growth of the global TMT
steel bar market is expected to grow significantly in the forecast period. Our performance
has also been satisfactory and we reported attractive growth - as Overall revenues
increased 6.06 % to Rs 46554.01 Lakh, profit after tax strengthened 195.83 percent to
Rs.299.71 Lakh. EBIDTA margin has also been improved to 21.57% to Rs.1280.34 Lakh
indicating the sustainable robustness of the business model. The improvement in our
performance during the year under review was not as much the result of a short-term
increase in steel realisations as much as a conscious focus on business sustainability.
There is some concern before the company. Overall greater collection periods has
decreased the liquidity and reduces the cash flow. But we are committed and determined to
minimize average collection period and make the Company once again more profitable,
competitive and capable to achieve even greater success in the future.
Infusion of capital:
With the aim of bringing cash liquidity in the business operations and creating more
opportunities, the Company is planning to infuse fresh funds of upto Rs. 28 Crore in the
form of preferential issue of Equity shares to boost the liquidity of the Company which
will be accompanied by financial reforms to improve the overall cash flows and to generate
more profits. This infusion of capital will be made in accordance with SEBI (ICDR)
Regulations, 2015. This investment is a reflection of my conviction that it will create a
longer term positive impact on the overall growth of the Company which will ultimately
build the confidence of our stakeholders.
With the rising demand for steel in modern architectures, the growth of the TMT steel
bar market is expected to grow significantly in the coming period and we are fully
equipped with the renovated plant to encash the opportunity.
I would like to express my sincere appreciation to our shareholders for the support and
confidence reposed in us, and all other stakeholders and government agencies, our bankers
for the continuing commitment and support in your Company.
I look forward to seeing you in person at the next year AGM.
Thank you and Jai Hind!
Puneet Jain
Managing Director
DIN:00814312