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Indian Card Clothing Company Ltd.

BSE: 509692 Sector: Industrials
NSE: INDIANCARD ISIN Code: INE061A01014
BSE LIVE 15:18 | 16 Aug 181.35 -0.90
(-0.49%)
OPEN

181.35

HIGH

181.35

LOW

181.35

NSE 15:31 | 16 Aug 179.65 -1.45
(-0.80%)
OPEN

181.25

HIGH

182.75

LOW

177.00

OPEN 181.35
PREVIOUS CLOSE 182.25
VOLUME 10
52-Week high 268.90
52-Week low 175.10
P/E
Mkt Cap.(Rs cr) 83
Buy Price 178.25
Buy Qty 10.00
Sell Price 181.35
Sell Qty 5.00
OPEN 181.35
CLOSE 182.25
VOLUME 10
52-Week high 268.90
52-Week low 175.10
P/E
Mkt Cap.(Rs cr) 83
Buy Price 178.25
Buy Qty 10.00
Sell Price 181.35
Sell Qty 5.00

Indian Card Clothing Company Ltd. (INDIANCARD) - Chairman Speech

Company chairman speech

ANNUAL REPORT 2000-2001 THE INDIAN CARD CLOTHING COMPANY LIMITED Chairman's Statement I have great pleasure in welcoming you to this 47th Annual General Meeting of your Company Period under Review: The downturn in the domestic and global textile industry that I have been mentioning for the last 3 years continued to have a restraining influence on your Company's performance for the period under review. Sales of card clothing products increased by a scant 2% to Rs. 37.05 crores during the year (vs. an increase of 4% in the previous fiscal year). Gross profit from operations increased by 50% to Rs 4.71 crores entirely due to lower write-offs of bad debts for the period under review. Gross profit from card clothing operations remained steady from the previous year. Gross margins were stable as a better product mix was mitigated by higher costs. Notwithstanding the global downturn in the textile industry it is important to note the significant jump in exports during the period under review. Exports of card clothing increased by 75% to Rs.7.36 crores. the highest ever level in your Company's history. Unit volume growth declined marginally by 0.3% inspite of the export boost due to the continued closure of a large number of domestic textile mills. New products introduced in the last 3 years. a key measure of product innovation. has increased to 15.24% of sales (vs 11.58% previous year). Although Garnett Wire Limited your Company s manufacturing subsidiary in the UK, increased its turnover by only 1% to around Pound Sterling 1 million, its profits improved by 45% from the previous year. It also declared a higher dividend of 11.43% (vs 10% in the previous year. ICC Investment & Finance Consultants Limited a wholly owned subsidiary of your Company reported a lower Profit After Tax of Rs. 8.13(previous year Rs. 16.47 L) in line with a decline in the capital markets during the year under review. It's net asset value fell to Rs. 13.59 (Rs. 16.40 previous year end) a decline of 17% as compared with a decline of 28% in the BSE SENSEX over the same period. In line with previous year's policy it did not declare any dividend. Over the last 3 years the Net Asset Value has increased by 51% as opposed to the BSE SENSEX which has declined by 7.4%. ICC International Agencies Limited (formerly known as TexmaticC India Limited) is now a wholly owned subsidiary of your Company. Your Company purchased the remaining shares after obtaining the necessary regulatory approvals. ICC International Agencies Limited reported a profit after tax of Rs. 5.78 lacs (previous year loss of Rs. 36.62 lacs). No dividend was declared due to the carry forward loss. Current Prospects: Reviewing the current year to date. sales of card clothing have shown a decline of 18% compared to last year-s corresponding level. While the last 2 months have shown a slight up tick sequentially from the first quarter, it is still too early to proclaim that the worst is over and as yet there are no definitive signs of improvement. Management continues to feel that conditions in the textile industry infact will remain challenging this year and perhaps for the next few years To meet these challenging circumstances management has enacted a series of steps in co-operation with its employees to: [1] cut costs [2] manage inventory more efficiently; [3] re-deploy under-utilized resources; and [4] Seek out new competitive spaces and new geographic markets for the Company's products. This year for example your Company has introduced a new Top for the Synthetic market. which has been received well. The Synthetic market had heretofore been eluding your Company for some time. Future Prospects: It is the strong belief of management, shaped by the events of the last 3 years. that a sustained growth in sales and profits requires a far reaching transformation within the Company. It is unlikely that the external environment will improve drastically. In addition. the competitive situation is worsening as card clothing manufacturers fight for a shrinking market. This has been recognized since the 1998 fiscal year and although progress has been slow and patchy the following ongoing initiatives have been undertaken Firstly. product innovation, where several new products have been introduced in the last 3 years including new wires (Tenace. Stylus. Aero- Dofferwires) and new products for the card room (Accura XBZ-E. Web Catcher. ICC Card Booster). Your Company is continuing to work on several new products (both wires and card room accessories) one of which should be rolled out commenercially in the early part of the 4th quarter. Secondly, by improving your Company's reach further in the export markets. Lastly. through better management of working capital and reducing the cost structure of the Company through the implementation of an ERP system with the goal of automating operations. While the tasks are being tackled vigorously and methodically. shareholders should be cognisant that the time frame will be longer than initially envisaged and that there are no quick and easy solutions or short cuts. General In closing, I would like to express my sincere thanks to all employees of the Company for their efforts to bring about improvements in the quality of the Company's products. I thank all our customers for their confidence and support in us which. I am sure. will continue to contribute towards progress and prosperity of your Company in the future. Thank you. Pune K K TRIVEDI September 6, 2001 Chairman