• An enriched product mix, branding, continuous efforts to remain the lowest cost producer and better realizations created an incremental EVA of Rs.5.16 Billion.

• Sales volume of Branded Steel Products increased by 98% at 0.70 million tonnes and turnover increased by 129% at Rs.17.28 Billion.

• To remain the lowest cost producer of steel, several initiatives were undertaken:-

• Specific raw material consumption was reduced to 3.12 tons/tss as against 3.18 tons/tss in the previous year.

• Specific refractory consumption came down to 6.58 kg/tcs as against 7.77 kg/tcs in the previous year.

• Ash content in clean coal was reduced from 17% to 16% enhancing hot metal production.

• Net working capital dropped by Rs.8.73 Billion to Rs.0.842 Billion (16 days of sales) as against Rs.9.575 Billion (38 days of sales) during FY'03.

• Debtors dropped to Rs.6.513 Billion (25 days of sales) as against Rs.9.585 Billion (38 days of sales) during FY'03.

• Credit sales were converted into cash sales by increasing channel financing for OEP customers through banks and distributor financing through metaljunction.com Pvt. Ltd.

• High interest bearing loans of Rs.8.52 Billion were repaid. Gross Interest and Net Interest was reduced by Rs.1.22 Billion and Rs.0.96 Billion respectively (before taking credit for reduction in SDF interest by Rs.0.863 Billion)

• CRISIL upgraded the credit rating of long-term debts to AAA (highest safety) from AA+ (high safety).

• Implementation of Total Operational Performance (TOP) programme, Aspirational Initiatives to Retain Excellence, Strategic Sourcing, Customer Value Management (CVM), Retail Value Management (RVM), and Customer Product Optimization and other initiatives were the key drivers for creating increment EVA.
  

Improved
Products,
Process and
Performance



Lower
Working
Capital




Efficient
Treasury
Management






Upgraded
Credit rating