I am delighted to state that your Company has reported impressive
figures, reflecting a robust performance during the year 2006-07.
* 120% increase in revenue to Rs. 8,560 crore
* 190% growth in PBT to Rs. 6,454 crore
* 202% rise in PAT to Rs. 4,442 crore
* EPS up from Rs. 35 to Rs. 105
Our strong financial results were driven primarily by increased volume,
improved operational efficiency and stronger LME prices.
* 7% increase in zinc concentrate to 9,47,386 DMT
* 12% increase in lead concentrate to 1,07,334 DMT
* 23% growth in zinc metal to 3,48,316 MT
* 103% increase in lead metal to 50,187 MT
The increase in zinc metal production was derived largely following a
ramp- up in our new hydro smelter (Phase-I), the captive thermal power
plant also delivered an impressive performance.
Your Company successfully commissioned a 38.4-MW wind energy plant in
Gujarat in March 2007 and with the completion of wind energy projects
at hand, our total installed wind energy capacity would touch 148.8 MW,
a benchmark in rapid action capability.
I take pleasure to report that your Company is well on its path to
realise its one million tonne mission. The 170,000-tonnes zinc smelter
(Phase-II) and 80-MW captive power plant project at the Chanderiya
complex, with matching expansion of the mining and ore-dressing plant
Rampura Agucha mine, are progressing well and should be ready for
commissioning in the third quarter of FY08 - ahead of schedule.
The Company identified another growth opportunity during the year under
review - of stretching the zinc smelting capacity by another 88,000
tonnes through de-bottlenecking and setting up of another 80-MW captive
power plant in Zawar and a roaster at Debari. All these projects are
progressing on schedule.
The global demand for metals continued to be robust on the back of
strong consumption in China, India and other developing economies.
Robust economic growth in India will continue to drive a strong
consumption growth of all metals, including zinc and lead. As a result,
our growth plans and strong GDP growth will complement each other.
As a growth-focused organisation, we intensified our focus on mineral
exploration to counter the depletion and increase the net addition. The
Company added 31.8 million tonnes of reserves and resources, net of
depletion, during the year under review, containing 3.8 million tonnes
of in-situ metal. Total reserves and resources as on 31 March 2007 were
209.40 million tonnes. Relentless focus on mineral exploration will
continue as a part of our long-term strategy.
Your Company repaid the entire external commercial borrowings of US$125
million, emerging as a debt- free company during 2006-07. All the
ongoing expansion projects were financed through internal accruals. The
Company paid an interim dividend of Rs. 2.50 per share in February 2007
in recognition of its strong financial performance.
To maintain consistency, continuity and keeping in view the prospective
fund requirements for expansion, your Board has recommended final
dividend of Rs. 2.50 per share, resulting in a total dividend of Rs.
5.00 per share for the year under review.
Sustainable growth is an integral part of our philosophy. Guided by our
HSE and social policies, there is a sincere focus on safety,
environment and community development initiatives. Your Company was
successful for the third year in a row in significantly reducing
loss-time injury frequency rate, even as it reported reduction in water
and energy in its manufacturing processes.
The Company is always committed to socio-economic development of the
communities in which it operates and has contributed significantly in
areas of health and hygiene, education, competency building,
agriculture, local area infrastructure etc. I am glad to share with you
that our initiatives got the Company three important national-level
awards for corporate social responsibility.
As we continue to march towards one million tonne mission, I would like
to thank all our stakeholders for their support and assure you that our
entire endeavour will continue to focus, as always, on enhancing value