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DCM Ltd.

BSE: 502820 Sector: Industrials
NSE: DCM ISIN Code: INE498A01018
BSE LIVE 15:40 | 02 Dec 102.15 -1.10
(-1.07%)
OPEN

102.50

HIGH

106.45

LOW

101.15

NSE LIVE 15:40 | 02 Dec 102.45 -1.15
(-1.11%)
OPEN

103.00

HIGH

105.90

LOW

101.10

OPEN 102.50
PREVIOUS CLOSE 103.25
VOLUME 14598
52-Week high 156.10
52-Week low 65.65
P/E 38.99
Mkt Cap.(Rs cr) 190.82
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 102.50
CLOSE 103.25
VOLUME 14598
52-Week high 156.10
52-Week low 65.65
P/E 38.99
Mkt Cap.(Rs cr) 190.82
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

DCM Ltd. (DCM) - Chairman Speech

Company chairman speech

1994 DCM LIMITED CHAIRMAN'S SPEECH Ladies & Gentlemen, I extend to you a very warm and cordial welcome The Directors' Report and Audited Accounts for the year ending 30th June, 1994 have been with you for some time and with your permission I will take them as read. THE MACRO SCENE The underlying mood during the last year on the political front has been one of relative stability. The ups and downs which have occurred in some of the northern States and U.P. in particular could be regarded as part of the normal democratic process. What is noteworthy, however, is a ray of hope on the Jammu & Kashmir front which has for some years posed an intractable problem. On the economic front there is every reason to feel optimistic. Every day one reads about major multinational companies wanting to establish their presence in India. In terms of hard facts the foreign exchange reserves now stand at $18 billion. equivalent to about 9 months' imports. Despite this the exchange rate has been stable at around Rs. 31 to the Dollar, The inflation rate is now a little over 8% as against nearly 12% at this time last year. The GDP is expected to grow at 4.5% as compared to 3.5% last year. The BSE Sensex is 58% higher as of September 1994 compared to the same period last year. Industrial activity has revived and production is 8.7% higher as of May 1994 than last year. Banks and institutions have been allowed to float the interest rate with no minimum lending rate restrictions. Imports have been further liberalised and customs duties reduced. Taken together these facts point towards excellent macro economic management on the part of the Finance Minister. It is now for industry to respond vigorously so that we can claim our rightful place as a nation among worldclass economic powers. Despite what I have said so far, however, there are areas which continue to remain a drag on the social and economic system. First and foremost is the inadequate attention to our human capital. While we may pride ourselves on a large pool of engineers and college graduates it is sad that our literacy rates remain woefully poor. specially among females. It is indeed beyond comprehension that while some States like Kerala demonstrate litercy levels comparable with the advanced nations, others like U.P. are worse than sub-Saharan Amican countries. Female literacy in some States is less than 20%. This has obvious adverse implications on population control, the values imparted to children and eventually productivity. It is no surprise that one of the key reasons that the Asian Tigers have pertommed far better than India is that they have achieved near-100% literacy with predictable positive results on productivity. Second is the sad state of our infrastructure. The sharp rise in India's middle class has put immense pressures on transportation, roads, education, medical services, power generation and the environment. From the view point of investment this field is still in a nascent stage and we have to move exceedingly fast so that infrastructure does not become a drag on our economic progress. The positive side is that policy makers now seem to be aware of the need to move rapidly. Consequently the field of infrastructure is being opened up to the private sector. Your company is also looking at this opportunity very seriously. COMPANY AFFAIRS I now come to our business affairs. I am glad to report good performance of your company for the year 1993-94. The Revenue grew by 31% to Rs. 172.73 Crores and the Net Profit was up by 90% to Rs. 19.25 Crores over the previous year's annuallsed figures. This gives an Earnings Per Share on a pro-rata basis of Rs. 11.75 on the enhanced Equity Capital of Rs. 17.36 Crores. Your Company has come a long way following the Trifurcation of the erstwhile DCM Limited. From a time when our Engineering Division was the only operation making profits and the real estate project was a distant dream, DCM has made rapid strides to reach a stage where we have setup a cotton yarn facility with 33,600 spindles in Hisar, received most permissions relating to the Bara Hindu Rao real estate project, commenced the doubling of the foundry capacity, reorganised the Information Technology division into profit centres and divested unviable businesses. DCM today has interests in a wide range of activities which in no way are limited to textiles or the association with the erstwhile Delhi Cloth Mills. In the mind of the public, however, this association continues to linger on. We have, therefore, decided to add a suffix under DCM which reads 'The Delhi Commerce & Manufacturing Company'. This does not affect the legal entity of DCM Limited, but hopefully will dissociate the linkage with the Delhi Cloth Mills over time The new by-line . has a connotation which can appropriately encompass the present and the future activities of the company. During the year 1993-94, our foundry division continued to perform well and further consolidated its position as a premier supplier of automotive castings. The unit was also awarded the ISO 9002 certificate. With a shift in focus of our Information Technology Division from Hardware to Software Exports and Systems Integration, the name of the Unit was changed from DCM Data Products to DCM DataSystems. The operations are now being spun off into a new 100% subsidiary company to provide the desired thrust and operational manouevrability. In real estate the demolition in the flatted factory and residential area is progressing fast. The textile division operations have stabilised and modernisation of the mill is in progress. Today, the company has reached a stage, where after having successfully overcome the post trifurcation crisis, it has consolidated its businesses and is now poised for rapid growth. The world renowned firm of management consultants McKinsey & Co. was accordingly appointed, to review the operations of the company, chart out the directions for future growth and formulate strategies. At the same time the company's businesses were restructured and the Organisation revamped to meet the challenges of the Nineties. The company proposes to leverage its core strengths in Engineering and convert DCM into a major player in the Auto-Engineering segment. After the break through in supplying castings to South Korean companies that I had mentioned last time, I am happy to state that we have been short listed by major OEMs in Europe & USA and negotiations are currently being held to finalise orders. We plan to treble our foundry capacity and continue to expand in the global arena. To achieve this objective we are seriously examining the setting up of machining facilities in a step by step fashion which will also result in considerable value addition. The Tool Room project in collaboration with Meissner of Germany is proceeding fast and studies are being undertaken for further investments in engineering. DCM also sees tremendous potential in the infrastructure and construction business and a new company DCM Estates & Infrastructure Ltd has been formed. The company shall be venturing into trading & promotion of real estate and development of infrastructural services. As part of the diversification process, a Housing Finance Company has also been set up. The objective is to become a leading housing finance company in north India within the next five years in terms of loan disbursement. Each of these companies and businesses will experience rapid growth in the coming years, and this shall translate into significant gains for the shareholders. Public issues are being planned for some of these new companies shortly, and we propose to make a preferential offer of equity shares to our existing shareholders so that they can participate and benefit from their growth. The success, of a company, eventually hinges not only on leadership but equally on the hard work and commitment of its employees. Your company is fortunate in having a highly motivated and committed team. Before I close, I would like to convey my sincere thanks to all our employees for the devoted manner in which they have worked throughout the year; the Financial Institutions and our Bankers for their co-operation; the Government of India and the various State Governments for their support and encouragement; and most important of all, the understanding and unstinting support of our shareholders. Thank you. Dr. VINAY BHARART- RAM Chairman & Managing Director Place : New Delhi Date : 23rd November, 1994

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