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Hawkins Cooker Ltd.

BSE: 508486 Sector: Consumer
NSE: HAWKINCOOK ISIN Code: INE979B01015
BSE LIVE 11:44 | 18 Oct 2687.00 11.65
(0.44%)
OPEN

2683.55

HIGH

2700.00

LOW

2679.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 2683.55
PREVIOUS CLOSE 2675.35
VOLUME 165
52-Week high 3610.00
52-Week low 2500.00
P/E 35.26
Mkt Cap.(Rs cr) 1,421
Buy Price 2681.00
Buy Qty 7.00
Sell Price 2687.00
Sell Qty 1.00
OPEN 2683.55
CLOSE 2675.35
VOLUME 165
52-Week high 3610.00
52-Week low 2500.00
P/E 35.26
Mkt Cap.(Rs cr) 1,421
Buy Price 2681.00
Buy Qty 7.00
Sell Price 2687.00
Sell Qty 1.00

Hawkins Cooker Ltd. (HAWKINCOOK) - Chairman Speech

Company chairman speech

ANNUAL REPORT 2000-2001 HAWKINS COOKERS LIMITED CHAIRMAN SPEECH Speech of Mr. Brahm Vasudeva, Chairman and Chief Executive Officer, Hawkins Cookers Limited at its Annual General Meeting held on July 31, 2001 1. Ladies and gentlemen: welcome to the forty-first AGM of your company. I am very happy to see all of you. I draw inspiration from your kind interest and personally learn a lot from your observations at such meetings. I look forward with keen anticipation to your comments and questions during this meeting at the appropriate time. 2. In the year ended March 2001, we have come through a difficult period. with profit after tax reduced to almost half the level of the previous year. You are aware that many other companies are similarly showing reduced profits, if not losses, at this time. There is, however, an important difference in the reason for poor results of most other companies and our company. In the case of most other companies, the reason for poor performance is the market condition or increased competition. In our case, the single biggest factor affecting our results in the year under report was the increase in central excise duty on pressure cookers from 8% to 16%. Almost Rs. 6 crores was sucked out of our system by way of increased excise duty payments As we have mentioned in the Directors' Report before you, had the increase in excise duty not taken place, our profit for the year ended March 2001 would have been substantially more than the profit in the previous year. 3. I believe that the increase in excise duty on pressure cookers is not only negative for our company's results but it is also against the national interest. Pressure cooking preserves nutritious elements such as vitamins and proteins better than conventional cooking and is, therefore, a more healthful practice. Further, pressure cooking is on average twice as fast as conventional cooking. Apart from saving time, fuel and money for crores of families all over India, pressure cooking leads to a reduction in the import requirement of petroleum products in so far as kerosene and gas are used as fuels for cooking and also contributes to a reduction in deforestation in so far as wood is used as a fuel for cooking. These facts are well accepted by various government and other bodies such as the Petroleum Conservation Research Association, National Tree Growers Co- operative . Federation and Non- Conventional Energy Development Agency. In fact, PCRA advertises from time to time urging housewives to conserve fuel by using pressure cookers and the other two bodies distribute subsidised pressure cookers in rural areas. 4. Given the extremely helpful role of pressure cookers in the national economy and for national health, one would expect the Union Ministry of Finance to take a more enlightened view of the subject of the appropriate rate of excise duty for this product. In fact, some previous governments have even thought it fit to have zero excise duty on pressure cookers. As on numerous such occasions in the past, we tried on this occasion to persuade the concerned officials in the matter, regrettably, without success. I urge all of you to take every opportunity to, create a climate of opinion for the reduction, if not abolition, of excise duty on pressure cookers. 5. Whether the reduction or abolition of excise duty comes about or not, I am pleased to report to you that our company has withstood the shock of the doubling of excise duty and is now once again set on the path of increasing growth and profits. In the June quarter 2001 our turnover is Rs.17.15 crores, 15% up over the corresponding quarter of the previous year. As was the case in the previous two years, we have made a loss in June quarter 2001. . The loss is Rs. 2.35 crores which is 21% less than the loss made in the June quarter 2001. Barring unforeseen circumstances, we expect to produce a good result for the current year. 6. You may have noted that whereas the net profit for the year ended March 2001 is 48% lower than the previous year, the dividend recommended, at 30%, is 25% less than the dividend of the previous year. This reflects the Board's confidence in the inherent ability of our company to return to a satisfactory trend of growth and profits in the current year. 7. I now come to a matter of considerable significance for our company and for me personally. You may have read in the Directors' Report about the forthcoming retirement of our Managing Director, Mr. B. M. Rai. Brij Rai has been my colleague on the Board and in the management of our company for the last 24 years. I could not have wished for a better colleague, a better friend, philosopher and guide than Brij. His unwavering loyalty, steady application of mind, mature judgement, courage in the face of adversity, fierce independence of views coupled with their always tactful expression and his unfailing consideration for and courtesy to all made Brij an invaluable colleague and a pleasure to work with for all these years. I am sure our company has gained enormously from his many contributions over the last quarter- century. On behalf of us all, shareholders, directors and employees of Hawkins Cookers Limited, I would like to acknowledge his role and thank him for it. (Pause) 8. We are fortunate in having the opportunity of continued guidance from Mr. Rai as a non-executive director. We are also fortunate in having not one but two homegrown, senior executives to promote to the Board as executive directors. Mr. Murli Teckchandani started his career in Hawkins 17 years ago in Finance and was transferred to take charge of Technical in 1997. Mr. Sundararaghavan started his career in Hawkins 13 years ago in Technical and was transferred in 1997 to take charge of Finance and, in 2000, also of Administration. Both executives have had long years of experience in Hawkins and have proved their ability to be transplanted successfully from one major function into another. This background provides a unique combination of in-depth knowledge of the company and a multifunctional perspective which has prepared each of them well for their increased responsibilities. May I present Mr. Teckchandani, the proposed Executive Director-Operations. And Mr. Sundararaghavan, the proposed Executive Director-Finance & Administration. 9. With the continuance of Mr. Rai as a non-executive director and the promotion or Messrs. Teckchandani and Sundararaghavan as executive directors, I am, confident that our company is well equipped to deal with the problems and opportunities that we have at present and in the foreseeable future 10. All of us in Hawkins are very grateful to our shareholders for their continued trust and support. On behalf of the directors, all employees of Hawkins and on my own behalf, I assure you that we will always do our best to justify and reward the confidence placed upon us.