The board of Maithan Alloys Limited (MAL), a leading producer and exporter of manganese alloys has approved the company’s decision to set up a greenfield ferro alloy manufacturing unit in West Bengal at an investment of Rs 275 crore. The unit will have an estimated installed capacity of 1,20,000 tonne per annum of Ferro Chrome Alloys and is part of a drive to diversify the company’s product portfolio. The unit is proposed to come up within a period of 30 months and will be financed through internal accruals.
The board has also authorised the executive directors and chief financial officer of the company to submit Resolution Plan under Corporate Insolvency Resolution Process for acquiring manufacturing company (ies) under the provisions of the Insolvency and Bankruptcy Code (IBC), 2016 and/or by participating in liquidation proceedings, an official statement said.
MAL which announced its financial results for the year 2017-18 (FY18) recently said it has posted a 57% increase in profit after tax (PAT) to Rs 292 crore in FY18 compared to FY17, while profit before tax (PBT) went up 50% to Rs 376 crore in 2017-18, up from Rs 250 crore in 2016-17.Total revenue from operations increased by 40% to Rs 1,879 crore in FY18, up from Rs. 1,342 crore led by improved volumes & realisations. EBITDA for FY18 grew by 36% Y-o-Y to Rs. 377 crore from Rs. 277 crore.
Commenting on the performance, S C Agarwalla, chairman, Maithan Alloys said: “Our results for the year are driven by favourable industry trends resulting into good volume growth for our product. It was enhanced by internal operating efficiency leading to strong profitability. The company has been improving its performance on the back of better product mix, better supply chain management and strong customer relationship.”
Agarwalla said the outlook for steel Industry looks promising in the years to come with an estimate to reach 300 million tonne by 2030. While the company has announced a greenfield expansion to capitalize on these opportunities by diversifying its product basket, it is also strongly looking to pursue its acquisitions strategy, he said, adding “with a strong balance sheet and cash generation, we are well-positioned to execute the above strategic priorities.” MAL’s board of directors have recommended a dividend of Rs 3 per equity share of Rs 10 each (@30%), for the financial year 2017-18.
Source: The Economic Times