It gives me immense pleasure to welcome you to the 48th Annual General Meeting of Mishra Dhatu Nigam Limited (MIDHANI). We started FY22 on a solid foundation laid during FY21 with unmatched resilience and dedication during the COVID-19 pandemic. The pandemic taught us to navigate uncertainty and anticipate the unexpected as an unavoidable part of doing business, which helped build our resilience and is reflected in the Company’s performance.
The fiscal also tested our spirit and resilience further due to the pandemicrelated supply constraints and the Russia-Ukraine military conflict which has led to numerous other challenges in the form of strained geopolitical and trade relations, sanctions, high commodity and energy prices, and so on. However, these challenges notwithstanding, FY22 has been the second consecutive year where MIDHANI’s perseverance and resilience has helped achieve new milestones with highest ever sales turnover of ₹ 85,949.02 Lakh.
The lingering effects of the pandemic and the Ukraine-Russia war led to high input costs, but we are hopeful that the growth of the superalloy industry is likely to remain stable. Domestic demand is expected to remain buoyant due to Government’s policies boosting domestic procurement and the present global supply-demand dynamics may also present additional export opportunities. The decision of the Ministry of Defence to procure 87% of capital acquisitions domestically, amounting to ₹ 11,486 Crore, will boost the domestic Defence Industries and will greatly benefit MIDHANI.
The highest ever sales turnover of ₹ 85,949.02 Lakh achieved by the Company for FY22 has given us a year-on-year (YoY) growth of 5.69%, and a healthy EBITDA margin of 34.16%; translating into an EBITDA of ₹ 29,361.48 Lakh. The Value of Production (VoP) for FY22 was ₹ 98,872.5 Lakh registering a YoY growth of 28.13%. The Operating Profit of your Company stood at ₹ 20,781.36 Lakh for FY22 was also the highest ever along with the Profit Before Tax (PBT) at ₹ 23,911.98 Lakh and Profit After Tax (PAT) at ₹ 17,630.77 Lakh for the fiscal. The Profit Before Tax (PBT) has seen a YoY growth of 5.76 % and the YoY growth for Profit After Tax (PAT) was 6.02%. Our export turnover at ₹ 8,702.16 Lakh recorded during the FY 2021-22 is also the highest ever with a YoY growth of 348%.
During the fiscal, the Company has paid an interim dividend of ₹ 1.56 per equity share and further proposes to pay another ₹ 1.54 per equity share as final dividend. The total dividend (including interim dividend) for the financial year is ₹ 3.10 per equity share (par value ₹ 10/- each). This works out to 32.94% of Profit After Tax which is the highest dividend being paid by the Company.
Building an ‘AatmaNirbhar Bharat’:
MIDHANI continues to cater to the requirements of our strategic sectors and during the year we have made significant contributions tothe Government’s vision to shape a new India which is self-reliant. The Government’s vision deeply resonates with MIDHANI’s strategic roadmap of being future-ready and it is under this vision for an ‘AatmaNirbhar Bharat’ Bharat that MIDHANI has contributed to strategic programmes of the country such as Advanced Ultra-Supercritical Technology (AUSC) Programme, Aero Engine Programmes, 700 MW power plant, satellite launch vehicles (PSLV, GSLV-MkIII, Chandrayaan, Gaganyaan). We have also developed titanium rings for use by National Institute of Ocean Technology (NIOT) in the programme for sending humans to deep sea.
During the year under review, we have filed 16 IPR applications including five trademarks related to Armor products. Eleven patents were filed as on March 31, 2022. MIDHANI has been awarded 5 patents as on March 31, 2022.
We have also made significant progress in the exports front by recording our highest ever exports sales. Your Company has completed first ever supplies of forged and machined superalloy bars, Titanium alloy rings and large size Soft magnetic alloy bars requiring stringent surface finish and close tolerances. These were developed in record time to meet the export requirements.
We have set up an armour facility at Rohtak, Haryana which is an exclusive facility for armour products which will be commissioned in FY23. We have a good order book visibility for this facility and have started the fiscal with order booking of about ₹ 10,000 lakh. We have also successfully commissioned our wide plate mill during FY22 which includes an entire product range including Low Alloys Steel, Stainless Steel, Titanium Alloys, Super Alloys, Armour Steel, and varieties of products. Our marketing department is preparing to secure orders with a some already secured. We would also explore the export potential for the products.
8T Vacuum Induction Melting Furnace is being set up to enhance our capacity in manufacturing of special steel and super alloys and our stakeholders can see the contribution from this facility in the FY23. We have also started a new Titanium shop for enhancing production capacity of Titanium Alloys. This facility will be dedicated towards exclusively making Titanium products in a single place. This will help meet the requirement of the international aerospace companies for the moving parts of aero engine components.
As on April 1, 2022 the order book position of your Company stood at ₹ 1,31,700 Lakh. MIDHANI, in its endeavour to serve the needs of our strategic sectors, has equipped itself with the state-of-art infrastructure and is well poised to cater to the demands of these strategic sectors and to strengthen our position as ‘import substitution’ solutions provider.
Sustainability at the core:
MIDHANI is committed towards its social responsibility and sustainable developments goals. Your Company has always been committed to work for the society where it operates. On Corporate Social Responsibility (CSR) front, MIDHANI has fully met its CSR obligations which covers healthcare, sanitisation, education and technology. During FY22, MIDHANI established the MIDHANI Primary Health Care Centre to cater the medical needs of people belonging to underprivileged backgrounds. MIDHANI also sponsors education of SC/ST children from lower income backgrounds till class 10. We have spent an amount of ₹ 481.46 Lakh towards CSR expenditure for FY22.
Being a responsible corporate citizen, we ensure sustainability through optimum consumption of resources and as a result, during FY22 also we have utilised 3,538 T of plant returned scrap for melting. We are also striving to ensure zero work related accidents and is also committed towards wellbeing of its employees. We have sponsored health check-up for our employees. Most of our employees are fully vaccinated at vaccination drive organised by your Company.
Practising good governance:
We are ever committed and will always continue in our endeavour to strengthen our Corporate Governance function with clear organisational strategy, effective risk management, corporate social responsibility and transparency and information sharing with our stakeholders. Our Board and Senior Management adhere to our Code of Conduct. Our policies and procedures are continuously evaluated and upgraded to keep the organisational integrity intact and uphold values. We continue to follow, in letter and spirit, the guidelines issued by the Department of Public Enterprises. We are happy to report that, your Company scored 100% as per the revised grading norms for CPSEs, conducted by the DPE on compliance of guidelines on Corporate Governance issued by them.
We have been bestowed with various awards during FY22 including ‘Best Development Programme Public Sector for Middle Level Management’ from National Awards for Excellence in Training and Development and ‘Telangana State Intellectual Property Award’ for the Best IP Portfolio in the PSU category by Confederation of Indian Industry (CII). Your Company was honoured with ‘Best Performance Award’ by The Indian Institute of Metals under category II ‘Secondary Processing’.
Our performance reflects our commitment to meet the needs of our customers and emerge as the catalyst for overall growth. While we are witnessing elevated inflation and supply chain challenges, we are highly optimistic due to the transformation of Indian Defence Industry in recent times. The various initiatives launched by our Government continues to provide impetus to us in our efforts to be the ‘National Centre for Excellence in Materials’ in our country and to cater to the needs of the strategic sectors of our country.
On behalf of the Board, I want to express my deepest gratitude to the frontline workers who were engaged in the battle against COVID-19. I would also like to thank our valued customers and vendors for their constant support and belief in our abilities. I heartily welcome newly appointed Directors of MIDHANI and I am grateful to my colleagues on the Board for their valuable guidance. I also extend my gratitude to our employees for their contribution and dedication of our employees towards the organisation. I also acknowledge the enormous amount of goodwill and support that we have received from our Administrative Ministry and all Government agencies particularly the Government at the Centre, State and local bodies who provide valuable guidance and support in the Company’s Management.
I am confident that under the stewardship of its astute management team, MIDHANI will continue to scale greater heights and deliver value to all stakeholders.
Dr. Sanjay Kumar Jha
Chairman & Managing Director