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Himatsingka Seide Ltd.

BSE: 514043 Sector: Industrials
NSE: HIMATSEIDE ISIN Code: INE049A01027
BSE LIVE 15:40 | 22 Aug 303.55 -14.10
(-4.44%)
OPEN

318.15

HIGH

322.00

LOW

302.25

NSE 15:41 | 22 Aug 302.65 -14.10
(-4.45%)
OPEN

320.00

HIGH

322.80

LOW

301.00

OPEN 318.15
PREVIOUS CLOSE 317.65
VOLUME 26442
52-Week high 400.00
52-Week low 240.90
P/E 16.49
Mkt Cap.(Rs cr) 2,989
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 318.15
CLOSE 317.65
VOLUME 26442
52-Week high 400.00
52-Week low 240.90
P/E 16.49
Mkt Cap.(Rs cr) 2,989
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Himatsingka Seide Ltd. (HIMATSEIDE) - Chairman Speech

Company chairman speech

Dear Shareholders

Fiscal 2015-16 has been a milestone year for the Group. The financial and operatingperformance signal that our initiatives to consolidate and strengthen our position in theglobal home textile industry have augured well.

Operating Performance

Through today we have focused on enhancing performance across our manufacturing anddistribution businesses. On the manufacturing front we have significantly enhancedperformance parameters by bringing in a new paradigm on effciencies productivity andtechnology. On the global distribution front we have been expanding our brand portfolioand thereby bringing more relevant and di3erentiated solutions to the global shelf. Ourintegrated approach where the power of large scale manufacturing complimented with astrong brand portfolio has helped us disseminate capacities with an optimal productprofile and has paved the path to creating sustainable value

These initiatives have had a positive impact on the consolidated financial performanceover the last 3 years. Our focus on profitability has kept Consolidated Revenue rangebound at Rs. 1886.84 crores for FY ’16. The Compounded Annual Growth Rate (CAGR) forConsolidated Revenue over the same period stood at 3.6%. The Consolidated EBIDTA howeverhas grown at a CAGR of 23.2% to Rs. 312.05 crores in FY ’16 and our consolidatedProfit A3er Tax during the same period has grown at a CAGR of 42.7% to Rs. 166.6 Crores inFY ’16. Therefore our asset base has been utilized better with the Return On CapitalEmployed (ROCE) growing from 8.6% to 15.1% in FY ’16 and our Return On Equity (ROE)growing from 9.5% to 18.6% during the same period. It will be our endeavor to continue toimprove our return ratios going forward.

New Initiatives

Fiscal ‘16 also marked the announcement on fresh investments to be made in orderto augment our manufacturing capacities and capabilities. Our investment outlay ofapproximately Rs. 1300 crores will aid in achieving the following:

• Double the Group’s Sheeting capacity from 23 MMPA (Million Meters PerAnnum) to 46 MMPA.

• Backward integrate into ultra-fine count cotton spinning by setting up theworld’s largest spinning plant under one roof with a capacity of 211584 spindles.

• Foray into manufacturing Terry Towels with a capacity of 25000 TPA (Tons PerAnnum) as it is synergistic and strategic to the Group’s current offerings.

These investments will be made in a phased manner beginning FY ’16 through FY’18 and will help augment our manufacturing portfolio over the next 3 years.

Contiguous to the new initiatives in manufacturing we intend to pursue initiatives todrive growth in our distribution verticals as . well. Today with over 10 brands theGroup has amongst the largest portfolio of Home Textile brands with an annual throughputof over Rs. 800 crores. Creating brands and solutions that are di3erentiated by technologyalso continues to be a key area of focus. We are indeed pleased to be the first mover tobring to market a DNA verified cotton value chain solution under the Pimacott Brand. Thisinitiative will drive significant value for our clients and consumers alike in thebackdrop of ever changing consumer preferences demands of the millennial consumer and theadvent of omni-channel retailing.

Outlook

Looking forward we expect our investments to add to our manufacturing portfolio andgarner for us a top 3 position across our businesses globally. Our focus on deliveringsustainable value combined with our corporate ideals of good governance and transparencywill give us the essential ingredients to build a strong and globally competitiveenterprise.

We wish to express our sincere gratitude to our Board of Directors InvestorsEmployees Bankers and Suppliers for their trust and continued support for ourinitiatives.

Sincerely
Dinesh Himatsingka Shrikant Himatsingka