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Creative Newtech Ltd.

BSE: 538414 Sector: Others
NSE: CREATIVE ISIN Code: INE985W01018
BSE 05:30 | 01 Jan Creative Newtech Ltd
NSE 00:00 | 08 Dec 398.45 -4.15
(-1.03%)
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Creative Newtech Ltd. (CREATIVE) - Chairman Speech

Company chairman speech

To Shareholders

Dear All

I am pleased to share with you all that the financial year ended 31st March 2020 hasbeen in line with our expectations. Our Company reported a 23.83% year-on-year growth inrevenue at Rs. 459.06 cr while EBITDA and PAT stood at Rs. 16.82 cr and Rs. 7.78 cr ayear-on-year growth of 26.28% and 32.97% respectively. This growth reflects the Company'scommitment and ability to deliver on its plans and overall strategy.

It has been an eventful year for the Company witnessing several major milestones inour growth trajectory. We updated our portfolio with various niche and internationalbrands that are relevant to the current consumer trends and have a tremendous potential inthe Indian markets. These include PNY Cooler Master BaByliss Panasonic and Epson toname a few. These brands cover a wide range of industry verticals and cater to diverseapplications from high-performance computing and gaming to personal grooming. We alsoexpanded our Honeywell portfolio to include networking solutions which are typically usedin smart buildings and smart cities. These additions not only give us deeper penetrationinto our existing market but also expand our reach in newer avenues and upcominghigh-growth sectors.

Another major milestone during this financial year was the Company's migration from theNSE-Emerge board to the NSE Main board in August 2019. After two years on the NSE-Emergeboard we were ready for this bigger platform in terms of internal Company practices aswell as the opportunities that this platform has to offer. Consequently we are alreadywitnessing increased visibility for our Company. This comes at an opportune time as weexpand our reach to international markets through our subsidiaries in Hong Kong. Thesubsidiaries will enable us to cater to international markets efficiently.

However the unforeseen menace of the COVID-19 virus has dealt an unprecedented blow tothe economy as a whole. This pandemic has impacted lives and businesses at an alarminglevel and forced the whole world to pause and take a step back. It has changed ourlifestyles and the assumptions of physical and economic well-being which were taken forgranted. As majority of our products did not classify as essentials our businessoperations had also come to a temporary standstill during the lockdown period. While thelockdown has adversely affected our financials from March 2020 onwards the entire impactof this business slowdown remains to be seen in the coming quarters. A cautious consumersentiment is likely to keep demand muted in the near future.

Despite that we at Creative have taken this opportunity to further refine our internaloperations and skill sets so that we are better prepared for the market recovery. Duringthe lockdown we conducted several training sessions for our personnel from deeperunderstanding of various products of niche brands to soft skills developmentteam-building and motivational exercises. Moreover we stepped up in this time of need andstarted supply of various personal medical products such as thermometers thermalscanners pulse oximeters and masks. We have launched these products under our own'B-Safe' brand.

Over the last few months we had been working tirelessly on developing our very owndigital platform to improve operational efficiencies and further enhance our customer-baseand experience. In August 2020 our efforts came to fruition when we launched Ckart ouronline digital B2B eCommerce platform. Ckart hosts all our customers and allows them toshowcase view and transact their inventory amongst each other. It not only enables tradein products that are already in our portfolio but also allow customers to trade inproducts that may not directly be in our portfolio thereby extending our platform'sproduct reach. Various other features such as drop-shipment invoicing andcustomer-specific site make this platform an easy-to-use and mutually beneficialproposition for all participants. We expect our customer- base to grow significantlythrough this platform while maintaining a lean working capital cycle.

We believe that our industry is undergoing a paradigm shift towards digitization in theway we conduct business. In this dynamic and evolving industry Ckart is a future-readysolution which would enhance customers' experience and facilitate growth and expansion.Moreover it would make Creative a one-stop-shop for all our customers' requirementstranslating into higher top line and margins.

Looking ahead to the next phase of our journey we see three strong growth pillars forour business - market entry and penetration for global niche high-margin brands; licensedmanufacturing for Honeywell and other similar brands; and being the digital one-stop-shopfor all customers in our supply chain through Ckart. We expect these pillars to drive ourgrowth substantially as well as sustainably. Infact we recently renewed our contractmanufacturing license with Honeywell for another five years as well as added newgeographies into our purview bringing our distribution reach to 29 countries across APACand Middle East.

With a strong year behind us we look forward to rewarding times ahead. The Company iswell placed to tap into new opportunities as the markets recover and build further on ourroadmap for growth. Despite the setback from the COVID-19 crisis our aim to beinstrumental in the digitization of this sector and our overall vision remains intact.Ckart is a step in that direction. I would like to thank the entire family of CreativePeripherals for the hard work sincerity and dedication with which they move this Companyforward as well as all the stakeholders whose support helps us to set and achieve higherbenchmarks.

Ketan Patel

Chairman and Managing Director

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