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Ruttonsha International Rectifier Ltd.

BSE: 517035 Sector: Engineering
NSE: N.A. ISIN Code: INE302D01016
BSE LIVE 15:40 | 20 Sep 45.30 -4.35
(-8.76%)
OPEN

43.00

HIGH

50.00

LOW

43.00

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 43.00
PREVIOUS CLOSE 49.65
VOLUME 740
52-Week high 61.00
52-Week low 34.35
P/E 96.38
Mkt Cap.(Rs cr) 32
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 43.00
CLOSE 49.65
VOLUME 740
52-Week high 61.00
52-Week low 34.35
P/E 96.38
Mkt Cap.(Rs cr) 32
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ruttonsha International Rectifier Ltd. (RUTTONSHAINTL) - Chairman Speech

Company chairman speech

RUTTONSHA INTERNATIONAL RECTIFIER LIMITED ANNUAL REPORT 2011-2012 CHAIRMAN'S REPORT TO THE SHAREHOLDERS Dear Shareholders, It is my privilege to communicate with you the business results delivered by your Company during the financial year 2011-12, that stands as a continued testimony to your Company's purpose driven growth strategy and its commitment. Global crisis continued for the fourth successive year causing financial and economic upheaval across developed and emerging markets. The situation looks unsteady once again with problems in Euro zone, slowdown in U.S., political gridlock across middle-east and major part of Asia making it difficult to strike the right trade-off between growth, fiscal and monetary restraint. The worst case scenarios for the global economy have not come to pass and the road ahead is not yet smooth. However, global economies have realized that this is not a new phenomenon and that they need to be nimble to adapt to changes in the environment. The Indian economy was quick off the mark in recovering after the 2008 shocks, but the growth momentum has slowed down considerably over the past one year. The extended pause in reforms, together with some recent retrograde policy moves, dismal state of infrastructure have clouded business sentiments. The Eleventh Five Year Plan (2007-2012) anticipated creating 78,700 MW of new power generating capacity. By the end of the plan period (31st March, 2012) only 55,000 MW of new generating capacity was achieved (i.e. 70% of what was planned). Moreover, many projects under implementation have slowed down due to lack of coal or linkages. Despite of such a challenging environment, your Company reported steady growth in 2011-12 and I take pride to announce that your Company witnessed 13% rise in topline to Rs. 28.16 Crores. The growth in turnover was moderate due to decline in order volumes from Railways and OEM's, sluggish growth in the power sector, and escalating level of imports especially from China. Imports of electrical equipments have grown at an alarming rate of 28.28% CAGR in past five years. Further, the growth rate of the Indian electrical equipment industry decelerated to 6.6% in 2011-12 as compared to 13.7% in 2010-11. However, your Company was able to achieve a remarkable growth in the bottom line, recording a jump of 31% to Rs. 1.93 Crores in 2011-12 as against Rs.1.47 Crores in 2010-11. This was a result of better operating efficiency and diversifying ourselves into different businesses. The rise in margins was more significant considering your company remained unaffected by its competitors attempt to quote lower price for their products in order to gain a greater market share. The revival of Ruttonsha has been made possible due to sustained efforts and hard work put in by the new Management thereby bringing the Company back to profits, and tripled its turnover over the span of six years. We are re-engineering our sales force to be able to improve the identification of potential customers and develop new product line where we can deliver long-term values. There is global shortage of engineering talent, hence we need to continue to develop senior leaders through our talent pool. We need to automate more of our internal processes so that we can scale up efficiently. These changes to accommodate our growth are challenging. We have faced challenges before and I have no doubt that we will succeed this time as well. Ruttonsha is a great Company that has established its brand amongst its clients and business communities since inception. It will continue to perform and build values for the nation and its shareholders. The best years of your Company are waiting to unfold. Be with us and witness the change. Hasmukh J. Shah Chairman