Mideast Integrated Steels ltd (MISl), part of the MESCO Steel group, has posted a record turnover of Rs 728.78 crore in the last financial year with a profit-after-tax of Rs 140.43 crore as against the previous year’s profit of Rs 90.27 crore.
MESCO CMD Rita Singh told a Press meet on Thursday that the figures would have been more impressive if five months of production had not been lost due to the ban on mining. She added that it has been decided to give a dividend of 7.5 per cent to the shareholders for the year 2012-13. It was 5 per cent the year before.
She noted with satisfaction that the company is debt-free and the only steel producer of this size in the country to have this distinction. The company has controlled costs in many areas which have contributed to profit and ongoing efforts in this direction would contribute significantly to the profit in coming years, she added.
Her husband Capt JK Singh, Chairman (E), said the company has started brownfield expansion project for raising the steelmaking capacity to 3.5 MT per annum. It also has plans for many new projects including a slag processing plant, thermal power plant and coal washery. He disclosed that the projects would be financed through suppliers’ credit, internal accruals and promoters’ contribution.
Talking about the challenges, Rita Singh said the Malangtoli mines that has been given to the company by the Government does not have enough reserves to meet the requirement beyond a couple of decades once full expansion has been achieved. She also regretted that the proposal of the State Government to put a hefty stamp duty with retrospective effect would have crippling impact on the company.
She also discussed the various activities that have been carried out in the CSR area. She pointed out that unlike many other companies setting up plants in the State, MESCO has 98 per cent of its employees from the State and 92 per cent are from the areas around Kalinga Nagar as against the Govet stipulation of only 75%.