VISA Steel Limited Annual Report 2010-11

Annual Report 2010 -11
Chairman’s Statement
VISA Steel shall continue
to create value and deliver
sustainable growth while
achieving best standards
of safety, corporate
governance, corporate
social responsibility and
investor communication.
Dear Shareholders,
The global economy has continued to witness a sustained
growth due to growth in emerging economies led by
China and India and also due to the additional stimulus
in US and bail out packages in Europe. However, this
had resulted in inflationary pressures which have forced
many Central Banks, especially in China and India to raise
interest rates.
Inspite of the volatile and challenging environment on
raw material availability and pricing, the Company has
delivered healthy growth in performance. We will build
on our consistent and well executed strategy to grow in
the value added steel products, while being focused on
allocation of captive mines for raw materials and captive
power generation.
VISA Steel has since completed the Special Steel project.
Consequently the revenues from LAM Coke and Ferro
Chrome shall continue, but the Pig Iron and Sponge
Iron shall get covered into value added Special Steel
long products. This will be a key driver of revenues and
margins going forward.
VISA Steel shall continue to create value and deliver
sustainable growth while achieving best standards
of safety, corporate governance, corporate social
responsibility and investor communication.
Annual Results
For the year ended 31 March 2011, the Company
recorded a revenue growth of 14% to Rs. 13,329 million
from Rs. 11,715 million in the previous year and the
EBIDTA increased to Rs. 2,056 million from Rs. 1,976
million in the financial year 2009-10. The PAT also surged
to Rs. 514 million from Rs. 474 million during financial
year 2009-10.
The growth in revenues has been driven by improved
price realizations from Coke, Ferro Chrome, Pig Iron and
Sponge Iron inspite of lower sales volumes for Pig Iron.
The Company achieved satisfactory production volumes
inspite of pressure on smooth availability of raw material.
The Industry
The Global Steel market is being driven by emerging
economies with increasing importance of China and
India. China now accounts for 630 million tones or 45%
of the Global Steel production of 1.4 billion tones in 2010.