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Punjab Alkalies & Chemicals Ltd.

BSE: 506852 Sector: Industrials
NSE: PUNALKALI ISIN Code: INE607A01014
BSE LIVE 14:37 | 22 Aug 16.50 -0.10
(-0.60%)
OPEN

17.00

HIGH

17.00

LOW

16.50

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 17.00
PREVIOUS CLOSE 16.60
VOLUME 5350
52-Week high 27.40
52-Week low 12.10
P/E
Mkt Cap.(Rs cr) 45
Buy Price 16.00
Buy Qty 500.00
Sell Price 16.50
Sell Qty 144.00
OPEN 17.00
CLOSE 16.60
VOLUME 5350
52-Week high 27.40
52-Week low 12.10
P/E
Mkt Cap.(Rs cr) 45
Buy Price 16.00
Buy Qty 500.00
Sell Price 16.50
Sell Qty 144.00

Punjab Alkalies & Chemicals Ltd. (PUNALKALI) - Chairman Speech

Company chairman speech

1994 PUNJAB ALKALIES & CHEMICALS LIMTED STATEMENT OF THE CHAIRMAN SHRI I.S. BINDRA AT THE 19TH ANNUAL GENERAL MEETING HELD ON 20TH SEPTEMBER 1994 Ladles and GenUemen, I have great pieasure in extending to you a warm welcome to the 19th Annual General Meeting of the Company. The Directo.s' Report and the Abridged Annual Accounts lor the year 1993-94 have been with you for some time, and you would be having a fair idea of the performance of your Company. In our last meeting I spoke to you about the challenges thrown up by the fast changing economic scenario in the country and the emerging opportuniUes. The move is towards Integration with the world economic order. lt is gratifying to note that the competitive forces unleashed by liboralisation and budgetaty changes have been met squlrety by us. Productivity and cost contrd are the key are.s In whlch your Company never misses a chance to convert the challenges into opportunities. With this in view, the Company is exploring the possibility of sening-up a Captive Pow,er Generating Station for cutting down the cost of power ' a major input. The Company has registered extremely good results for the year ended 31 st March,1994, surpassing the previous performance leveis. Gross Sales of Rs.77.21 crores and Net Profit before tax at Rs.13.93 crores reflect an increase of 25% and 37%, respectively, over the previous year. The performance would have been even more impressive but for the exhorbitant hike in power tariff, withdrawal of e;octricity duty exemption, floods in July, 1993 and transporters' strike In AugusVSeptember,1993. Cash Profits during the year were Rs.17.28 crores. This ensuted excellent liquidity and enabled the Company to fully meet its otligations towards'the finandal Institutions. ThR Reserves of the Company stood at a healthy Rs.18.29 crores compared to Rs.12.97 crores for 1992-93, leading to an increase of 41 %. Your Directors have recommended a Dividend of 30% for the year 1993-94. The global caustic price movement is cyciical. After bottoming out in December, 1993, the international caustic prices have started firming up. The recovery in international prices means that imports will not be a threat In the medium term even as tariffs fall. However we in PACL realise that we must be even better prepared at the time of tile next trough in this cycle. Wordwide the production of Cusstic Soda is generally linked to the demand of chlorine. The Clorine demand and prices in India witnessed an upsurge during the year. The market for Caustic Soda continues to expand. While the capacity utilisation of the industry went up from 69.4% (1980-81 ) to 84.98% (1993- 94); the Caustic Soda production Increased from 5.72 lakhs MT to 11.15 lakhs MT. The capacity utilisation of PACL Plant at 104.1 % far exceeds the industry averrage of 84.98% for the year 1993-94. The revamping of the existing Flaking Unit was completed in January,1994, giving additional leverage to the Company in optimising product mix. The third phase of Capacity Optimisation Project has become operational, which will go a long way in maintaining continuity of plant operations at higher ioads. I am happy to report positive trends for fiscal 1994-95. The Production of Caustic Soda Lye and Gross Saies during the first five months of the current year were 21571 MT and Rs. 34.01 crores, respectively, which are higher than the corresponding figures for the period ended 31st August, 1993. The Company has posted a Net Profit before tax of Rs 5.53 crorss for this period, which is also higher than that for the corresponding period in 1993-94. The implementation of Company's 100 TPD Membrane' Cell Caustic Soda Project based on HOECHST-UHDE technology, is proceeding according to plans. We are aware that ultimately continuous growth only be sustained by the consumers. Although we have well defined regionalised marketing strategy, your Company is assiduously working on creating new markets. You will be happy to know that based on surveys we expect a tairly good growth in the consumer industry in the region to match the increased production. l am conf.dent that on commissioning, this project will give a significant boost to the Company's earning profile. The Finandal InsUtutions had sanctioned assistance to the tune of Rs.54 crores for the Membrane Cell Project The Company had made a 1: 1 Rights Issue of equity shares to finance a part of the cost of this project. l would like to place on record my profound gratitude to the shareholders for their overwhelming response to the Rights Issue. We share the global concern for providing a healthy environment and have taken approprlate steps in this direction. Based on in-house research, the Company has successfully implemented a project for the removal of Sulphates from the Brine as a significant pollution control measure and the same has become operational in June, 1994.This plant reduces the quanUty of brine sludge to be disposed off and will generate upto 1000 TPA of Barium Sulphate - an additional value added product. Our people are our strength. They have been insirumental in building the Company's strong base and sustaining its performance over the years. l would like to express my deep gratitude to every member of the PACLfamily without whose contribution, commitment and involvernent, the Company could not have performed as well as it did. Their combined efforts underthe dynamic leadership of Shri P.S. Bajwa and Shri P.S. Pruthi, enable1 us to achieve our corporate goals. I would also like to express my sincere thanks to the State Govemment, Financial Institutions, s;lr bankers and our customers for their cooperation and support. I am also grateful to my colleagues on the Board for their wise counsel and support. Above all, I thank you, our esteemed shareholders, for your unstinted support to the management tn its efforts to build an even better future for the Company. Ladies and Gentlemen, in the end I thank you tor your presence and valuable participation. I S BINDRA CHAIRMAN 20th September, 1994