Dear Shareholders,
Greetings and good wishes !
The Financial Year 2017-18 had been quite an eventful one for your Company. A major
milestone has been achieved in terms of the merger process of your Company along with its
Sister Company Indsil Energy and Electrochemicals Pvt Ltd.,
The merger has created one entity having a 50% stake in the Oman Company, Al-Tamman
Indsil Ferrochrome LLC (ATIFC). The merger also brings in enormous advantages of risk
diversification and it also brings in a wide variety of product mixes to the Company's
manufacturing portfolio.
As I had pointed out last year, your Company's investments over the past few years in
terms of the ferro chrome smelter in Oman and the Manganese smelter in Andhra Pradesh have
started bearing fruit.
On a consolidated basis, your Company has achieved a sales turnover of '746 Crores
vis-a-vis '224 Crores for the previous year. A considerable part of the jump in sales
attributed to the merger has brought in additional 23.38% stake in ATIFC belonging to
Indsil Energy and Electrochemicals Pvt Ltd.,
On EBIDTA terms, your Company earned EBIDTA of '105 Crores on a consolidated basis
vis-a-vis '23 Crores. The growth in EBIDTA is attributed in two factors viz.
a) The merger process bringing an additional stake in ATIFC.
b) Improvement in performance parameters in both ATIFC and the Andhra Pradesh smelter.
The monsoon in 2017-18 was much better than that of previous two years.However, it was
still below the Company's expectations.
Markets for Manganese have been volatile recently. It has now become a very difficult
task to predict a sustained movement of the markets on the upside or downside. However,
the key note that I would like to make here is that your Company has gradually been
reducing its dependence on fortunes linked to the manganese industry in India. With all
recent investments starting to bear fruit, I do hope that the year 2018-19 would be a
rewarding one for all stake holders.
With best wishes,
Vinod Narsiman
Managing Director