MDN/CS/COMPLIANCE/2022-23 | June 11, 2022 | ||
BSE Limited, | National Stock Exchange of India Limited, | ||
P.J. Towers, 1st Floor, | Exchange Plaza, 5th Floor C-1, Plot No. CII | ||
Dalal Street | G Block, Bandra Kurla Complex, Bandra (East) | ||
Mumbai- 400001 | Mumbai - 400051 | ||
Scrip Code: 541195 | Trading Symbol: MIDHANI |
Sub: Transcript of the Analysts and Investors Meet / Conference Call held on June 7, 2022
Dear Sir/Madam,
1. Further to our letter dated June, 7 2022 intimating you about the audio recording of Analysts and Investors Meet/ Conference Call on 'Q4 & FY 22 Results' held on June 7, 2022, please find attached the transcript of the aforesaid Conference Call.
2. The transcript of the call is also made available on the Company's website. This is for your information and record.
Thanking you
Yours faithfully,
r Mishra Dhatu Nig m Limite
- �.
-�Mtt-Rntony Secretary & Compliance officer e-mail:company.secretary@midhani-india.in
fll°l31 � � ttllf'les | MISHRA DHATU NIGAM LIMITED |
('qffif �col�) | (A Govt. of India Enterprise) |
- �: ifi.;it. �' �' �-500058 Registered Office: P.O. Kanchanbagh, Hyderabad, Telangana-500058iR Telephone: 040-24184000, 1fieffi Fax: 040-24340039
f.rffe@ � �- CIN: L14292TG1973GOI001660 - Website: www.midhani-india.in
"Mishra Dhatu Nigam Limited
Q4 FY22
and
Business Update Conference Call"
June 07, 2022
MANAGEMENT: DR. SANJAY KUMAR JHA CHAIRMAN & MANAGING DIRECTOR
MR. GOWRI SANKARA RAO NARAMSETTI
DIRECTOR (FINANCE)
Page 1 of 17
Mishra Dhatu Nigam Limited | |
June 07, 2022 | |
Moderator: | Good day and welcome to Q4 FY22 and business update conference call of Mishra Dhatu Nigam |
Limited hosted by ICICI Securities Limited. From the management team we have with us, Dr. | |
Sanjay Kumar Jha - Chairman and Managing Director. | |
As a reminder, all participants' lines will be in the listen-only mode and there will be an | |
opportunity for you to ask questions after the presentation concludes. Should you need assistance | |
during the conference call, please signal an operator by pressing '*' then '0' on your touchtone | |
phone. Please note that this conference is being recorded. | |
Without further ado, I now hand the conference over to Dr. Sanjay Kumar Jha for his opening | |
remarks. Thank you and over to you, Dr. Jha. | |
Dr. Sanjay Kumar Jha: | Good afternoon and I welcome all the investors and the stakeholders for today's conference. I |
am very pleased to announce here some of the highlights which initially I will start with Q4 | |
results. | |
Q4 for 21-22 we have sales of Rs. 323.29 crores against 345.87 from the previous year. And | |
VOP for in this fourth quarter of this 21-22 is at around Rs. 352 crores against the previous year | |
of 271. There is a growth of around 30%. Also, we have the PBT which is Rs. 110 crores against | |
Rs. 101.53 crores which we have recorded in the previous year, registering a growth of 8.8%. | |
Similar trend is in the PAT also where our Q4 PAT against 74.62 of the previous year, the quarter | |
four of 21-22 stood at Rs. 80.99 crores. This year also, if you see the overall for 21-22 as in the | |
full year, complete year of 21-22, we have achieved a turnover of Rs. 859 crores against the | |
earlier last year turnover of Rs. 813 crores registering a growth of around 5.7%. VOP also there | |
is an increase of around 28% corresponding to the previous year so against 771 from the previous | |
year, this year we have achieved Rs. 988 crores. And there's a corresponding increase in the PBT | |
also and PAT also. And PBT stood at Rs. 239.12 crores against the previous year of 226 and | |
PAT is 176.31 against the previous year of 166.29. | |
So, this is the total financial performance what I have put briefly here, and our results are already | |
out. It is available for further details. And considering that this year we have paid the dividend | |
of, already interim dividends were paid of Rs. 1.56 per equity share. And now we have decided | |
the equity around 1.54 per equity share is the final dividend we are going to pay for 21-22, which | |
is also the highest. In fact, it works to around 33% of PAT and highest dividend paid by the | |
company so far in its history. | |
So, this is all performance, there have been some difficulties. As you are aware in the last quarter | |
there is some impact of the current conflict which is going between Ukraine and Russia and also | |
that has put a lot of pressure in some of our raw materials as well as the sales also, so we could | |
not realize certain amount of sales in the last moment due to this affecting, due to this war. |
Page 2 of 17
Mishra Dhatu Nigam Limited
June 07, 2022
And initially the first quarter of the company's performance was also affected by the second wave of pandemic, third also has slightly, but then this is all, it was common for all these companies for this year.
Order book position, I just want to highlight here, that our order book stands almost similar to that what we had on the 1st April of 2021, it is coming to around Rs. 1,317 crores. The reason behind that buildup of the order book is mainly today we are not getting any order which can go for the couple of long-term. What we are getting the orders now that we can get the orders and we have to execute within a very short time.
This year another highlight, as I said, about the significant jump in VOP and also the export has gone almost it has touched more than 4x. Of course, base was very less, but nevertheless export jumping to 4x and we have to also see the disruption in the supply chain due to the pandemic in the entire globe, this has been a very significant achievement for the company as far as presence in international market is concerned.
I would like to highlight some of the other achievements. Our facility which has come at Rohtak in Haryana which is exclusively for our facility, that facility has already been established and we are starting the facility, already we have the booking of more than Rs. 100 crores of orders for this facility. So, we are starting the facility with a very good note. We also started our wide plate mill which was coming from since long time in this 21-22 and we have got established the entire product range which includes low alloys steel, stainless steel, titanium alloys, super alloys, armour steel, varieties of products already we have demonstrated and it is expected that and it is already we are getting orders from a different source which includes a small, a token of export also we are trying to get from this facility.
This year also we have seen that our 8-ton vacuum induction melting which has been a long requirement to enhance our capacity in manufacturing of special steel and super alloys, have been already commissioned and already it has been proven that this equipment can be used successfully, and you will find that the contribution of this facility in the current financial year.
We have also started a very important facility for making titanium alloys. Already we have. But to enhance its capacity we are making a titanium shop. So, our titanium facility now we are putting exclusively for making titanium production in a single place which will meet the requirement of the international companies or precisely aerospace companies, so that our product can be used in the moving parts of aero engine components.
So, these are some of the highlights which I have presented. Now floor is open for discussion and any queries. And with me, Director Finance has also joined. So, you can put your questions now. Thank you.**
Page 3 of 17
Mishra Dhatu Nigam Limited | |
June 07, 2022 | |
Moderator: | Thank you very much. We will begin the question-and-answer session. The first question is from |
the line of Kaitav Shah from White Equity Investment Advisors. Please go ahead. | |
Kaitav Shah: | I have two questions. First question is related to the inventory. So, we have the sub line item is |
called internally generated scrap and rejected material. So, if you see over the past five years | |
that portion as a percentage of inventory is increasing consistently. In 16 it was around Rs. 17 | |
crores and the percentage of inventories was around 6%. That has increased to Rs. 217 crores | |
and 27% of inventory for the FY20-21. So, can you please throw some light on this, why these | |
balances are increasing and is company planning to use this material for some future project? | |
Can you please throw some light on this? | |
Dr. Sanjay Kumar Jha: | You have rightly told that whether the company is trying to use this inventory. First of all, our |
company we are manufacturing very special alloys and special materials. So, these materials | |
whatever we generate the scrap during the process, it cannot be sent outside and showed outside | |
and basically, they are very valuable in nature. And our orders are not having uniformity. We | |
cannot get the same order on a regular basis. So, whatever we generate, probably we have to | |
store for some time and then when the next order is coming, I will be utilizing those things. So, | |
this is the reason precisely that it is going up. But at the same time, certain things are also not | |
moving very fast because items which we make, the certain scraps, you cannot sell in the open | |
market, even though you are not able to use it for a long time, you cannot sell in the open market | |
because these materials are very strategic in nature. These two factors are I think important. Any | |
other part is there, I will ask our Director Finance to add here. | |
Kaitav Shah: | Adding on that so if the balances are increasing, so any plan to written off in the near future of |
these inventories? | |
Dr. Sanjay Kumar Jha: | If you see this consumption of internal scrap, I don't know if it is appearing in our financial |
results or not, but our consumption of internal scrap has increased progressively year after year. | |
It is mainly because we are trying to see that the scrap can be used for certain customers who | |
are not monitoring, that means their requirement is not for using the pure metals. So, we are | |
making the balance on that. And also, we have modified in our processing technology which has | |
helped us to consume more and more quantity of scrap. So, that work is also parallelly going on | |
and that encouraging results are coming. The last year itself this current financial year, we have | |
saved around Rs. 40-43 crores of raw material by utilizing our internal generated scrap. | |
Kaitav Shah: | And sir, second was just a small question, so you are providing the count of the employees. So, |
can I get count of how many are in the admin staff and how many are in the technical staff? If | |
you can give some idea on that for the current year and the trend over the last five years. | |
Dr. Sanjay Kumar Jha: | I think you are looking for the numbers, technical and non-technical side. |
Kaitav Shah: | Yes. |
Page 4 of 17
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Mishra Dhatu Nigam Ltd. published this content on 11 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 June 2022 16:22:11 UTC.