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Nitin Spinners Ltd.

BSE: 532698 Sector: Industrials
NSE: NITINSPIN ISIN Code: INE229H01012
BSE LIVE 15:44 | 15 Dec 109.55 0.40
(0.37%)
OPEN

110.40

HIGH

112.50

LOW

109.00

NSE 15:44 | 15 Dec 109.80 0.45
(0.41%)
OPEN

111.00

HIGH

113.10

LOW

107.30

OPEN 110.40
PREVIOUS CLOSE 109.15
VOLUME 26128
52-Week high 145.00
52-Week low 66.10
P/E 11.63
Mkt Cap.(Rs cr) 605
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 110.40
CLOSE 109.15
VOLUME 26128
52-Week high 145.00
52-Week low 66.10
P/E 11.63
Mkt Cap.(Rs cr) 605
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Nitin Spinners Ltd. (NITINSPIN) - Chairman Speech

Company chairman speech

Dear Shareholders

The year 2016-17 marked a milestone for the Company. We have completed 24 successfulyears of operations and entered into 25th year. We embarked on our growth journey with anopen-end spinning in 1993.

We have progressed into ring spinning with our focused & consistent endeavours andsubsequently forward integrated into knitted fabrics. Today we possess the requiredscale product offerings presence quality technology and the right knowledge of theacceptability standards of our end-user industry. In other words we have laid a solidfoundation for spinning the right growth in the years to come.

Our performance in 2016-17

The fiscal 2016-17 saw us achieve our highest-ever revenues of Rs. 934 Crores -growing by 22% over 2015-16. Exports accounted to over 60% of our revenues. We have beengradually increasing our focus on the value-added products. As a result the value-addedproducts share as a proportion of total revenues increased from 15% in 2013 to 41% in2017. We recorded an EBDITA and PAT of Rs. 133.91 Crores and Rs. 57.15 Croresrespectively. The Board recommended a dividend of Rs. 1.20 per equity share.

Expansions

At NSL our expansion strategy is devised to meet the end-application and dynamic needsof the market and the customers. The timely completion of our expansions allowed us tocommence the commercial production well within targeted dates. During 2016-17 wecompleted expansion of our spinning unit and took the overall spinning capacity from150096 to 223056. Result: The Company's cotton yarn-manufacturing capacity increasedfrom 38000 tonnes per annum (TPA) to 50000 TPA in 2016-17. In knitting division also weadded 14 knitting machines taking total machines to 63 and production capacity of 9000TPA.

Opportunities

India has emerged as a dream market for various industries engaged in multipleproducts. Especially in textiles and apparel domestic consumption is the biggest driver.The demand is further fuelled by the demographic advantages of India's populationincreasing urbanisation growing disposable income and higher marked penetration oforganised retail. The exports have also grown significantly over the past five years andare expected to touch $300 Billion mark by 2024-25. The industry estimates to attractinvestment of about $120 Billion by 2024-25 - creating about 35 Million additional jobs inthe process.

Capitalising on the underlying opportunities the Company successfully built itself onits core strengths viz infrastructure raw material-sourcing proximity productionefficiencies skilled manpower energy requirements logistics and easy connectivity toports.

Our plants are flexible enough to switch product lines as per customers' needs. Ourconsistent quality allows penetration across several geographies while diversifying ourpresence.

Implementation of GST is a very important move for composite mills like us. This willput an end to multiple taxes at various stages of manufacturing and help us be morecompetitive.

Sustainable way forward

Our approach to business is deeply ingrained in the belief of empowering communitiesand enabling them to have a better quality of life. During the year 2016-17 we continuedto work in the areas of education healthcare and rural development with a focus onenvironment sustainability.

We are a large family of stakeholders. Our core decision-making revolves around theCompany's profitability. While we have consistently recorded double digit growth in thepast we continue to explore newer areas for enhancing our shareholders' value whilecreating long-term business sustainability.

I would like to thank my fellow board members investors bankers lenders customersvendors and all our employees for being a part of this wonderful journey. We look forwardto your continued support in the Company's progress going forward.

Best Wishes

R.L.Nolkha

Chairman