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Sanghvi Forging & Engineering Ltd.

BSE: 533411 Sector: Engineering
NSE: SANGHVIFOR ISIN Code: INE263L01013
BSE LIVE 15:40 | 18 Aug 36.90 -1.00
(-2.64%)
OPEN

34.60

HIGH

37.90

LOW

34.60

NSE 15:30 | 18 Aug 37.20 -0.30
(-0.80%)
OPEN

36.30

HIGH

38.80

LOW

36.30

OPEN 34.60
PREVIOUS CLOSE 37.90
VOLUME 2680
52-Week high 53.40
52-Week low 33.00
P/E
Mkt Cap.(Rs cr) 55
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 34.60
CLOSE 37.90
VOLUME 2680
52-Week high 53.40
52-Week low 33.00
P/E
Mkt Cap.(Rs cr) 55
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sanghvi Forging & Engineering Ltd. (SANGHVIFOR) - Chairman Speech

Company chairman speech

DEAR SHAREHOLDERS

The year 2015 was another year marked with volatality and uncertainty in economicgrowth - both at global and domestic level. Falling crude oil prices the resurgence of USeconomy and geopolitical unrest in the Middle East resulted in global economy growing by amodest 3.1%. The emerging economies continued to face challenges on account ofinvestments. With the rebound of crude oil prices and Brexit issue we expect the globaleconomy to sustain its growth levels. India continued to show its strength by clocking thefastest eonomic growth in the world with a GDP of 7.6% in 2015-16.

The improvement in India’s economic fundamentals has accelerated in the year 2015with the combined impact of strong government reforms RBI’s inflation focussupported by benign global commodity prices. Despite uncertainties in global market therewas visible increased confidence among the foreign direct investment. With a slew of majoreconomic reforms taking shape it is expected that the economy will further grow in thecoming year. Your company has prepared the foundation to achieve the next-level of growth.Since our new capacities that have been completed since 2013 and enhanced operationalefficiencies we expect to capitalise on the next-wave of growth opportunities. Theeconomic reforms are expected to bring in benefits to the core sectors with significantinvestments. Our transition from a small forging player to heavy forgings products augurswell for us to capitalise on the future growth opportunities.

It was our proactive approach to pump in investments during slowdown which we expectto reap benefits as the economy slowly bounces back. With our growing presence andacceptance of our products among multiple sectors we are fast gaining foothold indomestic as well international forging markets. The year 2015-16 saw commercialisation ofour new capacities and execution of the order book we reported a positive PBDT during theyear. On a standalone basis total revenue stood at rs. 69.30 crore supported by a 29.33%growth in exports. EBITDA margins grew by 14.62%.

The market demand continued to be weak with low capacity utilisation levels. Withexpected reforms and new investments across country’s core infrastructure sectors weexpect our order book to further strenghten and improve our profitability levels. Duringthe year under review we further strengthened our global presence. Understanding theimportance of quality our products continued to be certified and trusted by some of theleading global vendors. regular audits and intense quality checks have allowed us toensure uncompromised quality levels for our products.

The ‘Make in India’ momentum continues to gain traction in the eyes of globalinvestors and manufacturers. India was ranked the highest globally in terms of consumerconfidence during October-December quarter of 2015 continuing its earlier trend of beingranked the highest during first three quarters of 2015 as per the global consumerconfidence index created by nielsen. This validates the country’s growing prominenceas a preferred destination for future investments for various products and services. Thischange in attitude comes at an right time. With china now slowly transitioning towards aconsumer-driven economy the world looks upon India as the next cost-efficient andqualitative manufacturing base.

Since our inception we have always believed in sustainability. Even during downside ofthe economy we knew our investments in capacity expansion was the need of the hour. Webelieved in our capabilities and core competencies to take the company to greater heightsof success. Our state-of-the-art technologies new product development and growing marketpresence will only help us reinstate our leadership. Driven by our passionate team ofmanagers and employees we believe we stand at a threshold of exciting times ahead. Onbehalf of the entire team at Sanghvi we thank the investors and shareholders for thecontinued support. We reiterate our conviction that the very reason for our existence isto create economic social and environmental value for our stakeholders—includingour employees our consumers our shareholders our bankers and the enterprises andinstitutions within our society—now and into the future.

Mr. Babulal s. sanghvi

Chairman