MMTC – leading from the front
The year 2009 was tough year for everyone. Global output contracted by nearly 1% while global trade reduced by 25%. However, towards the end of the fiscal, most of the developed economies who showed a modest 2.5% growth in 2009 started to accelerate. Manufacturing and service sector performance indices improved.
Over the period the company MMTC also experienced unprecedented challenges. Despite the odds being adverse focused leadership and dedicated teamwork ensured that the company navigated these fiscal 2009-10 with its highest ever top line for the sixth consecutive year and achieved a business turnover of Rs 45,124 crores registering growth of more than 22% over the previous year. MMTC also earned the highest ever net profit after tax of Rs 216 crores registering a growth of 54%. In commemoration of this historic milestone MMTC has issued bonus shares in the ratio of 1:1 to the eligible shareholders during 16th and 18th August 2010, subsequent to the subdivision of face value of the shares from Rs 10 each to Rs 1 issued to the shareholders on 31st July 2010. Besides dividend @ 90% on the share capital for the year 2009-10 has been proposed by the Board of Directors, which works out @ 45% of the enhanced share capital post bonus issue.
The performance is a source of deep satisfaction for all of us in the Company as it bears handsome testimony to the strong enterprise strength and successful strategic initiatives. This has led to a successful transition of company’s businesses from a monopolistic position in the regulated market of yesteryears to a position of leadership in the liberalized and highly competitive markets of today.
With this MMTC as a company has once again successfully demonstrated the vision and spirit to remain at the top. A company with over four decade’s success, MMTC is today a symbol of the resurgent India – young, confident and ambitious.
During 2009-10 three wholly owned subsidiary of your company – MMTC Transnational Pte Ltd Singapore (MTPL) achieved its second best business turnover of US $ 525 million MTPL generated its second highest profit after tax of US$ 6.54 million during 2009-10 . The net worth of MTPL stood as US $ 18.03 million as on 31st March 2010. MTPL has so far paid total dividends of US $ 6,15 million as against capital of US$ 1 million contributed by your Company, besides multiplying its net worth by 18 times since its inception.
MMTC’s Promoted Project – Neelachal Ispat Nigan Ltd (NINL)
MMTC has set up Neelachal Ispat Nigam Limited ( NINL), an iron & steel plant of 1.1 million tones per annum capacity 0.8 million ton coke ovens and by product unit with captive power plant jointly with Govt of Orissa. The project has firm iron ore supply linkages and also has captive iron one mining rights for reserves estimated at about 150 million tones. The construction of phase II of the project with an estimated cost of Rs 1,855 crores is under progress. During the year 2009-10 NINL achieved sales turnover of Rs 1,580 crores and generated a net profit of Rs 39 crores
While the global output is expected to grow by more than 4%, the early signs of coming out of the recession cannot be taken for granted since recovery after this kind of crisis may possibly be slow and weak. Under the scenario there is an imperative need to focus on continuous realignment of our trade strategies and priorities to take advantages of dynamics of global trade and the opportunities provided by the multilateral trading platform for consolidating our core areas of operations Besides we have to concentrate on enhancing future sustainability of the company by vigorously pursuing the various value multiplier initiatives taken in the recent past. With the growing liberalization and economic reforms there is an increase in the opportunities available to trading companies like MMTC, which should be encashed. After four decades MMTC stands on the path breaking route to a new and eventful journey to emerge as one of Asia’s biggest trading companies in fact setting the foundation for MMTC’s growth into a truly global enterprise.