DAMODAR THREADS LIMITED
ANNUAL REPORT 2007-2008
I am extremely proud to present you the performance of your Company for the
financial year 2007-08.
Let me begin by giving you an overview of the financial performance of the
company and then share some thoughts from a strategic perspective.
During 2007-08 Damodar Threads has grown by 176.67% in revenues from
Rs.63.92 crore to Rs. 176.85 crore. Every company to achieve growth has to
become global. It has to tap and service international markets. This is
portrayed in your company's result; exports have contributed to the major
part of the growth. The net profit has increased by 14.04% from Rs. 2.35
crore to Rs.2.68 crore and cash profit by 126.33% from 3.95 crore to 8.94
crore during the year. This has also translated to a rise in Earnings per
Share from Rs.7.57 to Rs.8.64. The Board has decided on a dividend of 15%
(Rs. 1.50/- per equity share).
Damodar Threads continues to be the market leader and pioneer in fancy yarn
segment. We have already achieved a lot success on our aim to become the
largest exporter of fancy yarns from India. We hope to receive the same
support from our shareholders to help us reach our aim.
Unity in Diversity is the motto of our nation and is the same motto for our
products. Apart from manufacturing Synthetics Blended Yarn and Cotton Yarn,
We have created a new set of yarns which India has never seen before. Our
new plant in Dadra, has been fully commissioned with 32,908 spindles,
having capacity to produce daily about 15 tonnes of yarn. The Company has
also installed 58 TFO's for doubled/twisted yarns. The Plant is fully
operative since September 2007. The results of this plant will be fully
reflected in the current financial year 2008-09.
Export Division, specializing in export of Cotton Yarn has done exceedingly
well having achieved turnover of over Rs. 90 crores within 1 year of
operation. Export Division has very successfully developed markets for our
fancy yarns. We expect fancy yarns contribution to increase in this years
Importance of use of natural fibres for clothing across the globe is fast
increasing, keeping up with this change in the market scenario; the company
is spinning specialty yarn by blending various natural fibres. After
achieving success in spinning Excel Fiber, This year your company aims at
spinning and developing a market in Organic Cotton Fibre.
We at Damodar Threads are continuously striving to improve efficiency in
operations, by increasing the strength and quality of Human Resources. The
company is continuously improving its IT Infrastructure, which is the need
of the day to reduce operating costs of the company. The company at the
same time is also opening offices in various textile centers across the
country to offer better service to our clients and to improve operations.
I am proud and thankful to each and every one associated with Damodar
Threads Limited, who has strived hard to achieve this performance. I am
optimistic about the long-term growth prospects of your company. I am
confident that our current approach and aggressive marketing strategies
will enable us to keep going forward and generate value for all our
stakeholders, employees, customers and investors. I am grateful to each and
every one of you for your continuous support and confidence in the
management team of the company and am looking forward to continually
receive the same support for better performance of the company.
Arun kumar Biyani