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Fedders Electric & Engineering Ltd.

BSE: 500139 Sector: Engineering
NSE: FEDDERELEC ISIN Code: INE249C01011
BSE 00:00 | 17 Jun Fedders Electric & Engineering Ltd
NSE 05:30 | 01 Jan Fedders Electric & Engineering Ltd
OPEN 4.60
PREVIOUS CLOSE 4.60
VOLUME 300
52-Week high 4.60
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 16
Buy Price 4.37
Buy Qty 400.00
Sell Price 4.80
Sell Qty 1540.00
OPEN 4.60
CLOSE 4.60
VOLUME 300
52-Week high 4.60
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 16
Buy Price 4.37
Buy Qty 400.00
Sell Price 4.80
Sell Qty 1540.00

Fedders Electric & Engineering Ltd. (FEDDERELEC) - Chairman Speech

Company chairman speech

Dear Shareholders

It gives me great pleasure in welcoming you on the eve of a momentous landmark of 60glorious years in the history of your Company. This undoubtedly is a moment of immensepride for all of us who have been part of this inspiring journey. But even more so asense of fulfillmentthat comes from the creation of an exemplary Indian private sectorenterprise. It is indeed a matter of great satisfaction that together we have built anational asset that will continue to create growing value for all our shared tomorrows.

Amidst global backdrop this was the year when India was globally acknowledged as theworld’s fastest growing large economy with 7.6% GDP growth rate on the back ofcontrolled inflation rise in domestic demand increase in investments decline in oilprices and reforms among others therefore offering a plethora of new opportunities tothe world. The sharp decline in commodity prices has impacted the economy of manycommodity producing countries. However the medium to long-term economic outlook in Indiacontinues to look promising and it is encouraging to see the Government’s drive tocontinue to liberalise the economy and focus on social sector spending in building bothhard and soft infrastructure. These are critical initiatives to make the nation’seconomy more productive and resilient in the future.

The governance landscape in the economy continues to evolve and align more closely withthe global framework to facilitate the integration of the Indian corporate entities withinthe global network. The introduction of the new accounting standards – IndianAccounting Standards (AS) is a step in this direction. Your Company is geared up to therequirement of these new standards. The current Indirect Tax regime in India provides fora complex tax environment due to multiplicity of taxes elaborate compliance obligationsand tax cascading. To simplify the structure of Indirect Taxation the Government hasproposed implementation of Goods and Services Tax ("GST") which if passed willstand for one singular tax to be imposed on all goods and services in the country and willreplace all forms of Indirect Taxes.

I am pleased to report that we ended the year with the positive note when the globaland Country’s economy remained adversely affected; your Company continued to maintainits growth strides.

Your Company clocked Total Revenue of Rs. 1035.01 Crores and earned Net Profit ofRs.21.58 Crores during the nine months period ended 31st March 2016. We continueour practice to consistently reward our shareholders and accordingly the Board ofDirectors of the Company have proposed a dividend of Rs. 0.75 per share which is subjectto your approval at the forthcoming AGM. This reporting period of your Company comprisedof 9 months as your Company has changed its financial year from "1st Julyto 30th June" to "1st April to 31stMarch" in order to align with the requirements of the Companies Act 2013.

The outlook for the global economy is mostly positive with growth picking up in the USIndia and Southeast Asia while several emerging markets are experiencing a decelerationin growth. However the structural shift in the transitioning Chinese economy could capthis momentum. Countries and businesses are becoming increasingly interdependent throughtrade investment and financial systems across the world. The risks and opportunities inthe steel business are getting larger in scale and impact with their sources becomingmore diverse and global.

A robust and thriving Power sector is central to India’s sustained economicgrowth. India’s power sector has evolved substantially over the last few decades andis now witnessing unprecedented interest and investments across the value chain. With theglobal economic growth and industrialization power consumption is escalating rapidlycreating demand for more power and compelling industry players to manage their powerportfolio efficiently.

Your Company has three business segments namely (i) Steel Structures & Engineering;(ii) Power Projects; and (iii) Environmental Control Systems and each of our businessessegments had a strong role to play in delivering these robust results. During the periodunder review the revenue generated by Steel Structures & Engineering Power Projectsand Environmental Control Systems represents 72.40% 25.67% and 1.93% respectively of theTotal Revenue recorded by the Company.

Your Company’s wind tower division grew to its all-time high by more than 250% ascompared to the previous year. During the period we ramped up our production from 3towers per month to 8 towers per month. I would also like to take this opportunity toinform that your Company’s Haridwar Plant has obtained a Certification of the Plantfor ISO:14001 & OHSAS:18001 and Membership of National Safety Council (NSC) &Quality Circle Forum of India.

Your Company aspires to establish itself as a global player executing turnkey projectsby various funding agencies for infrastructure development at various countries forinter-alia Construction of Railway Bridges for Bangladesh Railways Rural Electrificationwith Ministry of Electric & Energy for Myanmar Rehabilitation & Reinforcement ofTransmission Substations at Nigeria Supply & Erection of Workshop Equipments withTandaho Sugar Corporation at Ethiopia etc.

As a responsible corporate citizen we at Fedders Lloyd continued our voluntary effortstowards serving its community by undertaking various Corporate Social Responsibility (CSR)initiatives through Pandit Kanhaiya Lal Punj Trust (PKLP) philanthropic arm of yourCompany. We are committed for being a responsible and active corporate citizenconsistently working to improve its business while contributing to the betterment of ourlocal communities the environment and society overall. At

Fedders Lloyd we always follow highest standards of internal controls and governanceand are committed to continuously enhance these standards by imbibing the global bestpractices to stay aligned to the evolving business environment. During the period yourCompany continued to focus in the areas of education women empowerment and disabilityareas and provide a range of interventions that helped in building internal capacities.

Having established ourselves as strong players in all the areas of our presence we arenow firmly on track towards expanding and growing our business as we surge towards future.We remain encouraged by the long term macroeconomic fundamentals supporting our businessand we are optimistic about enhancing our profitability and maximizing returns to ourstakeholders.

Overall your Company is equipped to shift to a higher growth trajectory.

I would like to conclude by thanking and expressing my deep gratitude I have for theunstinted support extended by my colleagues on the Board staff and all our dedicated andmotivated employees of Fedders Lloyd who are the greatest assets of the Company and whohave with their passion hard work and commitment taken it to this level. I would alsolike to thank our stakeholders and partners in growth for reposing their confidence andfaith in the Company and for their contribution which has helped the Company to achieveits position of strength in the industry. I look forward to your continued support in ourquest to beat our own benchmarks and set the stage for a bright future of your Company.

Thanking You With Warm Regards

Brij Raj Punj

Chairman & Managing Director

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