Maithan Alloys Limited, India’s largest manganese alloy producer and exporter announced its Unaudited Financial Results for the quarter and half year ended 30th September,2019
Business Highlights for H1 FY20
· Revenue from Operations for the first half stood at Rs. 956 crores of which our Manufacturing Revenues was at Rs. 872 crores.
o Demand for our product has remained intact despite this slowdown in steel industry. Inspite of slowdown in the end user industry, we were able to optimally utilise our capacities.
· Manufacturing EBITDA for the first half stood at Rs. 120 crores with margin at 13.8%. Margins were impacted on account of market slowdown and the current volatile market
o In volatile market conditions, EBITDA Margins were impacted on account of a slowdown in the industry.
o The expected manufacturing EBIDTA margin for FY20 will be in the range of 12-14%.
· Profit After Tax (PAT) stood at Rs. 94 crores
· Manufacturing ROCE on an annualised basis stood at 45.8% as on September 2019
Greenfield Capex Update:
The Company proposes to incorporate a wholly owned subsidiary of Maithan Alloys Limited, to take up the announced expansion project, primarily for manganese based ferro alloys.
This shall enjoy the tax benefits recently announced by the Government of India.
Commenting on the results and performance, Mr. Subodh Agarwalla, Whole-time Director and CEO said:
“Over the past few months, there were a lot of uncertainties in both the global and domestic steel industry. Globally businesses were impacted on the back of lower confidence, amidst broader economic weakness and the uncertainty around the ongoing US-China trade conflict. Domestic steel industry is facing significant headwinds in terms of lower economic growth and trade flow uncertainty that is impacting steel consuming products.
Steel prices declined across geographies and adversely impacted the spreads globally, putting pressure on margins. However, despite the domestic slowdown and a sluggish market environment, we were able to utilize our plant at 100% capacity and reported our revenues at Rs. 956 crores for H1 FY20. Our business still continues to generate strong cashflow and high ROCE.
Our long-term outlook for the steel industry is positive on the back of rapid economic and infrastructural development in India.
With a large basket of ferro alloys product and greenfield expansion and strong relationship with the customers and financial flexibility, we feel Maithan continues to be at a sweet spot and will be in a position to grow faster than the Industry.”