- EBITDA for FY’09-10 at Rs. 197.63 Crores, EBITDA margin at 17%
- PAT for FY’09-10 at Rs. 47.42 Crores compared to loss of Rs. 66.81 Crores
- Board recommends dividend of 10%
VISA Steel, a part of the Rs. 5,000 Crore VISA Group, is currently a producer of Pig Iron, LAM Coke, Ferro Chrome, Sponge Iron and Power and is setting up an integrated Special Steel Plant at Kalinganagar Industrial Complex in Orissa. The VISA Group has business interests in Steel, Power, International Trading, Shipping and Logistics.
The Company announced its fourth quarter (Q4) and annual audited financial results for FY’2009-10 after its Board Meeting held in Kolkata on 19th May 2010.
VISA Steel registered a robust financial performance in FY’2009-10 with a revenue growth of 12.59% to Rs. 1,171.48 Crores, an increase in EBIDTA by 635.15% to Rs. 197.63 Crores, increase in PBT by 185.79% to Rs. 85.68 Crores and increase in PAT by 170.98% to Rs. 47.42 Crores compared to a loss of Rs. 66.81 Crores during FY’2008-09.
The Board of Directors of VISA Steel have recommended a dividend of 10% on the equity shares of Rs. 10 each, i.e., Re.1 per equity share for the year ended 31st March 2010, subject to the approval of the shareholders in the Annual General Meeting.
During Q4 of FY’2009-10, VISA Steel has registered excellent growth in financial performance with a revenue growth of 40.25% to Rs. 407.28 Crores, increase in EBITDA to Rs. 69.07 Crores and increase in PAT to Rs. 16.51 Crores, compared to a loss of 110.68 Crores during Q4 of FY’2008-09.
During FY’09-10, VISA Steel registered substantial growth in production volumes across all operating units.
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LAM Coke production increased to 353,601 MT compared to 331,128 MT during the previous year. The Hot Metal production in FY’09-10 increased by 76% to 150,423 MT versus 85,457 MT during the previous year. The Ferro Chrome production during FY’09-10 was 47,649 compared to 24,815 MT during the pervious year. The Sponge Iron production was 139,300 MT and power generation was 223.28 million units during FY’09-10 versus 28,370 MT and 39.06 million units respectively during the previous year.
VISA Steel is setting up a 0.5 million TPA Special Steel Melt Shop, 0.5 million TPA Special Steel Bar & Wire Rod Mill and additional 25 MW Power Plant to complete the integrated facility of special steel making in Orissa, with captive power generation. For the Steel Melt Shop Project, the company has completed 90% of the Civil Work, 99% of Structural Fabrication and 91% of Structural erection. For the Bar & Wire Rod Mill, the Company has completed 78% of Civil Work, 76% of Structural fabrication and 70% of Structural erection.
VISA Steel is planning to integrate backwards into mining of iron ore, chrome ore and coal. Iron ore is currently being sourced from OMC until commencement of its own mining operations. A part of the Patrapada Coal Block at Talcher with 54 million tonne deposit has been allotted to the Company. The Company is also developing a chrome ore deposit through its subsidiary company, Ghotaringa Minerals Limited. The requirement of coking coal is being imported from Australia.
VISA Steel has a Joint Venture Company called VISA BAO Limited wherein VISA Steel holds 65% and Baosteel Resources, China holds 35%. VISA BAO is setting up 4 Furnaces of 16.5 MVA each for production of 100,000 TPA Ferro Chrome at Kalinganagar in Orissa. VISA BAO is currently in the process of completing the financial closure for the project. The entire equity from Promoters to the extent of Rs. 91 Crores has already been infused into the Company.
Commenting on the performance for FY’2009-10, Mr. Vishal Agarwal, Managing Director, VISA Steel, said -
“Our operational and financial performance during FY’2009-10 continued to maintain a healthy uptrend over the quarters. The increase in production volumes across all Units has enabled VISA Steel to register a robust growth in sales revenue inspite of lower sales realization of the various products. The lower cost of raw material such as Coking Coal, Iron Ore and Chrome Ore and better operating efficiencies have resulted in better operating margins.
We continue to drive our low cost competitiveness largely due to strategic location, efficient raw materials procurement and captive power generation. With forward integration of Steel Melt Shop and Bar & Wire Rod Mill and additional power generation, revenues and profitability are expected to improve further.”