Indsil Hydro Power & Manganese Ltd Management Discussions.

Regulation 34 read with Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

A. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Company is a part of the ferro alloy industry. Ferro alloys refer to a range of compounds that find application in producing steel and stainless steel. Manganese, chrome and silicon alloys form a majority of the bulk of ferro alloys produced. While chromium alloys are used in the production of stainless steel, manganese alloys are used in the production of steel and some specialized grades of manganese alloys are used in specific grades of stainless steel making.

Your Company on a standalone basis produces specialised varieties of Manganese Alloys, regular Manganese Alloys and Ferro Chrome.

ATIFC generated EBIDTA of USD 67,22,267 which amounted to Rs. 52.29 Crores during the year 2018. Also your Companys standalone EBIDTA was Rs. 31.14 Crores during the year 2018-19. Top line on a consolidated basis was Rs. 665 Crores.

B. OPPORTUNITIES AND THREATS

The biggest threat is the ongoing US-CHINA trade war that is taking a toll on all metal related commodities.

C. SEGMENT WISE PERFORMANCE SMELTER DIVISION

The table given below gives the operational details of the two segments of your Company viz., ferro alloy segment and power segment.

Your Company earned EBITDA of Rs. 83.46 Crores on a Consolidated basis.

The smelter division struggled to maintain adequate operating margins on account of the global recession in the industry.

POWER DIVISION

As far as the Hydro Power Station is concerned, the power generation was 53.49 Million Units and as compared to the previous year 29.46 Million Units and as compared to average generation of 34.97 Million Units per year.

D. OUTLOOK

The industry scenario looks bleak. The domestic economy is weak and the US-CHINA trade war has made the global metals economy also extremely weak. In such challenging times, it is very difficult to predict a medium or a long term outlook.

E. RISKS AND CONCERNS

Markets for manganese have been volatile recently. It has now become a very difficult task to predict a sustained movement of the markets on the upside or downside. However, the Company has gradually been reducing its dependence on fortunes linked to the manganese industry in India.

a) COST CONTROL

Every single cost item goes through a thorough internal audit and in several stages as well. As part of the cost control system, every single aspect of costs goes through stringent pre-expenditure checks and audits as well.

b) OPERATIONS

Process and deliverables pass through stringent control systems on a continuous basis. These systems are highly adequate and infact play a vital role in productivity, growth, efficiency, improvement etc.,

G. FUTURE PROSPECTS

Already explained under "Opportunities and Threats".

H. CAUTIONARY FORWARD-LOOKING STATEMENTS

The Company makes forward-looking statements that are subject to risks and uncertainities. All statements that address expectations or projections about the future, including, but not limited to, statements about the Companys strategy for growth, market position and financial results are forward-looking statements.

For those statements the Company cautions that numerous important factors could affect the Companys actual results and could cause its results to differ materially from those expressed in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events.

Rs. in Lakhs

Rs. in Lakhs

J. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Number of people employed – 275

Your Company has always endeavoured to retain quality man power talent. Conscious efforts are on to develop a HR policy accordingly, giving thrust for effective participation of potential human resources at all levels in the activities of the Company.

The HR policy has been designed so as to give thrust on a transparent and performance-driven work culture which ensures challenges and opportunities for the deserving.

The Company in fact, adopts intensive selection process to ensure that best talents with great attitude are recruited so that the culture of team work and dedication remain intact.

K. FINANCIAL RATIOS

The Key Financial ratios of the Company are given below with explanation in case of significant changes