Indian steel industry currently faces many headwinds. Globally, steel industry is affected by significant oversupply. Falling demand in key steel consuming regions like China have led to significant pressure on steel prices and dumping of products into countries like India. Reduction in demand of steel products resulted in severe credit crunch in the steel industry leading to cost reduction exercises and unplanned shutdowns. This coupled with lower realisations of derived products and increased conversion costs put pressure on the margins. Your Company is taking various steps towards the effects of the above and increase profitability.
Despite the challenging business environment, your Company achieved its consolidated revenue of Rs.257.5 crore, being the highest, an increase of 9% over that achieved during 2013-2014. However, profit after tax (PAT) was Rs. 9.3 Cr. lower by 26% over last year due to lower prices of finished products, higher input cost and unplanned plant shutdowns due to adverse market condition. .
During the year, your Company has ventured into a new business vertical of fasteners with an ambition to garner a prominent market share in wire products. This has been operationalized by virtue of revamping the old machineries at a cost of around Rs 3.50 Crores. The business has stabilized and is expected to contribute to profits of your Company from the next year onwards.
Your Company has come up with a strategic roadmap for the next five years in order to achieve its newly developed Vision statement which emphasizes on utmost satisfaction of every stakeholder associated with it.
On behalf of the Board, I would like to take this opportunity to acknowledge the valuable contributions made by Ms Meena Lall as Director during her long tenure on the Board of the Company. I would like to extend a warm welcome to Mr Peeyush Gupta and Ms Molly Thambi as non-executive directors on the Board with effect from 4th February 2015 and 30th March 2015 respectively. Subject to your approval, Ms Thambi will be appointed as an Independent Director of the Company.
I wish to compliment the Company’s Management and all the employees of the company for their sustained dedication to deliver quality work. I sincerely thank the Union for maintaining industrial harmony and look forward to their continued support and encouragement in future. I would also like to acknowledge the trust reposed on the management by our shareholders and other stakeholders.
The ISWPL family joins me in conveying our gratitude to our promoter, Tata Steel Limited, for continued support and guidance.
With Best Regards
Jamshedpur (Sunil Bhaskaran)
30th April 2015 Chairman