Mishra Dhatu Nigam conducted conference call on 7 June 2022 to discuss the financial results and performance of the company for the quarter ended Mar'22. Dr. Sanjay Kumar Jha, Chairman & Managing Director and Mr. N. Gowri Sankara Rao, Director (Finance) of the company addressed the call

Highlights of the Concall

• The current conflict between Ukraine and Russia had an impact on the company's Q4FY22 performance which put a lot of pressure in some of raw materials as well as the sales also. It could not realize certain amount of sales in the last moment due to war.

• Current order book stands almost similar to April 1 of 2021 at around Rs 1317 crore. The company is not getting any long-term order which can go for the couple of years but it is getting the orders which it has to complete within a very short time.

• Exports jumped four times during FY22 although base was very small.

• The company facility at Rohtak in Haryana, which is exclusively for the armour facility. has already been established and has order booking of more than Rs 100 crore. The company expects revenue of Rs 50-60 crore in FY23 from this facility.

• The company has also started white plate mill in FY22 which has got the entire product range, which includes low alloy steel, stainless steel, titanium alloys, super alloys, armour steel along with various other varieties of products.

• The white plate mill maximum revenue potential is Rs 500 crore per annum at current market situation. The company expects revenue of Rs 230 crore from this mill in FY23

• The company 8 tonne vacuum induction melting, which has been a long requirement to enhance its capacity and manufacturing of special steel and super alloys has been already commissioned

• The company has also started a very important facility exclusively for making titanium production in a single place, which will meet the requirement of the international aerospace companies

• The company is manufacturing very special alloys and special materials. The scrap generated during the process of production cannot be sold outside. And they are very valuable in nature. Also cmpany's orders are also not having uniformity. So it cannot get the same order again. As a result, it has to store the material for some time resulting into increase of inventory of specific materials. So whenever the next similar order comes, those materials will be utilized.

• The company tries to utilize the scarp materials from orders where customers whose requirement is not for using pure metals.

• The company is exporting its products to Germany, Turkey, Bahrain, France U.S., U.K. and few other countries. Its products are being tested for quality, for processing, for certification by different countries. As a result volumes are now increasing year-by-year because once a customer is satisfied, they are increasing the quantity provided the price are given on a competitive basis. The company is targeting to increase exports from Rs 87 crore in FY22 to more than Rs 350 crore in next 2-3 years

• The company is targeting a lesser margin in exports to penetrate the market.

• NADCAP (National Aerospace and Defense Contractors Accreditation Program) certification for Aerospace international companies is in the final stage of approval. The company expects to get it in next 6 months.