AIA Engineering Limited | 33rd Annual Report 2022-23

Corporate Overview

Statutory Reports

Financial Statements

Message from
the Managing Director

Our growth is a testament to our favourable conversion cycle, which presents ample room for the penetration of ferrochrome in the current market

Dear Shareholders,

As we conclude the fiscal year 2022-23, we reflect upon a period that tested our resilience and adaptability in the face of global challenges. At AIA Engineering, our unwavering commitment to excellence and reliability ensured a robust performance.

In the face of external headwinds, we remained optimistic about the resurgence of the mining and cement industries, which fuelled the demand for our products. I am delighted to share that AIA Engineering Limited experienced a favourable product mix, resulting in a notable increase in margins. Furthermore, we successfully managed raw material costs. Our contracts include a price pass-through mechanism, which reflects previous raw material/freight costs in pricing, thus maintaining stability. Financially, we achieved impressive growth compared to the previous year:

  • Our annual sales volume soared to 2,91,342 MT, a substantial leap from the previous year’s 2,60,469 MT
  • Our total revenue witnessed a healthy growth, reaching ₹ 5,143.31 Crores, compared to ₹ 3,722.84 Crores in the previous year
  • Our EBITDA stood at a robust ₹ 1,475.18 Crores, marking a significant increase from ₹ 877.24 Crores last year
  • PAT experienced remarkable growth, reaching ₹ 1,056.50 Crores, compared to ₹ 619.62 Crores in the previous fiscal year

We are pleased to announce that our dedicated Mill Lining facility for Mining Liners has already gone on stream with an installed capacity of 50,000 TPA. Further we have resumed our Brownfield expansion for Grinding Media involving an additional investment of around ₹ 200 crores to further augment our capacity by 80,000 MTPA, which will increase our total capacity to around 5,20,000 MTPA by March 2025. We remain extremely bullish on the long term growth prospects in the mining industry given the huge conversion opportunity available to us for converting the mines from the conventional Forged Products into our High Chrome Solutions. Our unwavering focus on core industries like Cement and Mining and our commitment to customer satisfaction positions us well for continued success.

We remain committed to broadening our customer base and enhancing existing relationships. Our primary focus is on key markets such as North America, LATAM, Australia, and CIS, as well as critical countries like Chile, Peru, Brazil, and Canada. Market dynamics remain unchanged, and we forge ahead with an unwavering focus on gold, copper, and iron.

As a responsible corporate citizen, we strive to contribute to the socio-economic development of our communities while preserving the environment. Initiatives such as providing quality education, ensuring digital literacy, offering healthcare services, and protecting biodiversity empower the underprivileged and foster self-reliance.

We extend our deepest gratitude to all stakeholders who have stood by us. Improving productivity and employee morale remain key priorities for us. Looking ahead, our large and well-equipped R&D team will continue to develop comprehensive solutions to meet evolving market demands.

As we step into the next fiscal year, we pledge to deliver value to all those associated with us through ethical, sustainable, and profitable means. Our mission remains steadfast, and we are excited about the opportunities that lie ahead.

Best Wishes,

Bhadresh K. Shah
Managing Director
AIA Engineering Limited