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Bhatia Communications & Retail (India) Ltd.

BSE: 540956 Sector: Others
NSE: N.A. ISIN Code: INE341Z01017
BSE 12:26 | 07 Dec 195.00 7.00
(3.72%)
OPEN

192.00

HIGH

197.00

LOW

180.05

NSE 05:30 | 01 Jan Bhatia Communications & Retail (India) Ltd
OPEN 192.00
PREVIOUS CLOSE 188.00
VOLUME 13590
52-Week high 209.95
52-Week low 63.00
P/E 50.78
Mkt Cap.(Rs cr) 244
Buy Price 182.05
Buy Qty 45.00
Sell Price 194.50
Sell Qty 10.00
OPEN 192.00
CLOSE 188.00
VOLUME 13590
52-Week high 209.95
52-Week low 63.00
P/E 50.78
Mkt Cap.(Rs cr) 244
Buy Price 182.05
Buy Qty 45.00
Sell Price 194.50
Sell Qty 10.00

Bhatia Communications & Retail (India) Ltd. (BHATIACOMMUNIC) - Chairman Speech

Company chairman speech

Dear Stakeholders

I am pleased to share with you an update on your Company's performance for FY2020. Theyear saw a challenging business environment with lower GDP growth compared to theprevious years and witnessed a slowdown in consumption. The novel coronavirus has affectednot just human health but severely impacted businesses and the society at large. Againstthis backdrop your Company has delivered competitive profitable and responsible growth.

Our Company's growth fundamentals have remained intact with gains in penetration &distribution with brand awareness establishing across South Gujarat. Our EBITDA marginimproved by ~60 bps on comparable basis PAT grew by 7.59% to 54million.

We sustained our track record of strong cash generation. The Board of Directors haveproposed a final dividend of 4 per share subject to the approval of the shareholders atthe Annual general meeting.

Over 50 crore Indians have started using smart phones a 15 per cent increase fromCY2018. Moreover after a slow migration rate from feature phones to smart phones for acouple of years people have again started to explore and expand smart phone market.Factors like availability of good-quality affordable smart phones expansion of channelsexpansion of 4G/LTE networks by the operators are among the key reasons driving the smartphone user growth. With the COVID-19 teaching all of us a new way living lives and makingwork from home a norm the smart phone market is expected to grow and penetrate evenfaster.

On the macro level to make way for electronic manufacturers to ramp up domesticproduction the government has relaxed rules that previously hampered local production.The government has dropped certain contentious clauses that included the evaluation ofplant and machinery to be brought from China and South Korea leading companies likeSamsung Apple Foxconn Oppo Vivo and Flextronics to push for increased manufacturingunder the production-linked incentive (PLI) scheme. This would further add value to theindustry and bring in more people under its ecosystem thus enlarging the market size.

The Appliances and Consumer Electronics market (ACE) is expected to grow at a CAGR of11.7% and reach a total market size of 1.48 lakh crore by FY2025. The ACE market sizeincludes residential air-conditioners audio products refrigerators TVs and washingmachines. Therefore your company's transformational decision to diversify its productportfolio was well timed last year and your company has now been able to achieve aconversion rate of 96% with revenue generated per square feet standing at 19200. Yourcompany generated major portion of its revenue from owned retail stores contributing85.6% to the top line while the rest coming in from franchised retail outlets. Yourcompany this year reached a total of 100 stores across South Gujarat and is nowplanning for expansion in other parts of the state as well. To achieve its goal of PanGujarat presence your company uses various platforms like Social Media Radio Ads PrintMedia for Advertisement and Marketing to further establish its brand.

Your company has never intended to grow at an unsustainable & erroneous rate byopening stores after stores but rather grow at a convincing rate therefore your companystrategically plans all its the store location making sure that it reaches a widersection of people and create value for its esteemed shareholders.

However as your company is involved in retail business and due to the nation-widelockdown the shops were closed it did cause a short-term impact on the working but asurge in demand was witnessed in the unlocking phase. The demand of products is expectedto rise with the improving conditions.

Hereby on behalf of the company I would like to assure that your company does notforesee any impact in respect of its existing contracts and agreements and its long-termsustainability is expected to remain unharmed.

I would like to thank each and every employee as well as those working with ourpartners across our value chain for their commitment and service to Bhatia Communicationsand Retail (India) Limited in these challenging times. I would also like to thank ourBusiness Channel Partners which has contributed significantly to the growth of thecompany. Most importantly I would like to thank you our shareholders for youroverwhelming trust support and confidence in Bhatia Communications and Retail (India)Limited.

Best regards

SANJEEV HARBANSLAL BHATIA

(Chairman)

.