Mr. Rama Shankar Gupta Chairman and Managing Director analyses performanceof the Company in a challenging scenario
In times of rapid economic and societal transformation such as this there are noiron-cast rules that govern value creation by businesses. The rules of the game changefast and strategies for doing business come with a caveat: 'today's lessons may loserelevance tomorrow.' Therefore continuous transformation is the way forward to endearcustomers and endure for the long term. At Incredible Industries transformationinnovation and progression work in tandem to create a futuristic enterprise.
Incredible during pandemic
The year 2020 was marked by unprecedented challenges. Our way of life changed likenever before and people were compelled to adapt and adjust to new realities. Theresilience of our business model and our values of Performance Care and Integrity allowedour people to come together with a real sense of purpose. Although the COVID-19 pandemicis far from over our Company remains strategically and operationally poised to take theorganisation ahead.
We believe every realm of society is interconnected - including communities theenvironment businesses institutions and governments. In this context organisations likeus play a crucial role for enabling responsible change. If in the past the main purposeof organisations was to generate shareholder value now the focus has changed towardssustainable development. Keeping our sustainability initiatives at the core of ouroperations we remain committed to build a better future.
India's incredible steel vision
India has the potential to transform into a manufacturing hub as China did in the pasttwo decades. However it is a gradual process and we have enough time till 2030 to becomea 300 MT steel manufacturer. Swift implementation of the policy reforms and biginfrastructure push can make it possible. The government has laid a strong impetus todevelop highways rail networks bridges smart cities and indigenous Defence equipmentmanufacturing facilities. There are a lot of opportunities lying in India's ruralinfrastructure sector too. These all would increase the crude steel output and will alsorevive the ailing sectors and would also stimulate endless employment opportunities.
Over the last decade India made steady progress as a steel producer expanding itsoutput from 58 MT in 2008 to 110 MT growing at double the pace of the world. In thisprocess it has overtaken Russia US and Japan to become the world's second largest steelproducer after China. The country has the lowest per capita of steel consumption at just74.3 kg compared to other nations with similar demographics population count etc. Thecountry is expected to move ahead with its V-shaped recovery achieved after Q1 of FY2020-21 on the back of its ambitious target of becoming a 5-trillion dollar economy by2030. Government of India has taken various steps to boost the demand in the steelindustry including the introduction of National Steel Policy 2017 and allowing 100%Foreign Direct Investment (FDI) in the steel sector under the automatic route. DuringApril 2000 and September 2020 Indian metallurgical industries attracted Foreign DirectInvestment (FDI) to the tune of US$ 14.24 billion (Source: Department for Promotion ofIndustry and Internal Trade). All these initiatives are expected to drive further demandfor steel in India.
Incredible results in challenging times
The year 2020-21 was a challenging one but we performed incredibly well and sailed todrive a healthy stakeholders value creation. We generated a revenue of
` 49394.18 Lakhs and Profit before Tax stood at ` 548.95 Lakhs.
An incredible focus
In the competitive business of Iron & Steel manufacturing and marketingsustainable success is inevitably drawn from three key drivers.
Capability Profitability & Sustainability.
It is our conviction that when a company possesses these competences - as we do - itresults in a prospect that makes it possible for players to be future-ready during anykind of adversities.
Capability: At Incredible Industries we have always believed that nothing rewardsmore than great quality. We take pride in our ability to deliver highest standards ofquality products to our clients - each and every time. Our capability emanates fromconsistent initiatives to increase quality awareness amongst our employees across unitsand hierarchies. Today we command healthy market share in India's TMT Bar market due toour constant focus on providing quality products.
Profitability: Driving away with a view of quality consciousness does not alwaysguarantee success. One should always understand that without value creation andoptimisation none of us can withstand downturn. Only when one understands and appreciatesthe value of a resource is the only way one can ensure maximum utilisation from the same.The year gone-by have taught us to respect each resource despite its financial weightage.We managed to face the challenges from every front and thus our PAT increased by 359.71%.Our ability to offer highest quality of products has made us win repeat orders from ourexisting customers.
Sustainability: Going ahead with our business initiatives it was most importantfor us not to lose sight of the larger issues which included Environment Sustainabilitywith Stakeholders and Governance (ESG) practices. We aligned our business priorities withsocial commitments as a part of our sustainability initiatives.
We at Incredible Industries endeavours to practice the following to reflect theenvironment as a key element of business strategies secure environmental integrity basedon technological development and open communication and propel low-carbon green growth:
We comply with environmental laws and constantly strive to protect the environmentconsidering all processes.
We minimize pollutants by implementing a clean manufacturing process and applyingoptimum prevention technology.
We establish a resource cycling society and improve ecological efficiency byefficiently using natural resources
We secure management transparency and aim for sustainability through publictransparency of the performance of environmental Management.
Our HR practices not only enhance employee capability but motivate them to go beyondtheir routine responsibilities. Our community development initiatives include healthcareeducation and investing in state-of-the-art technologies to ensure cleaner and greeneroperations.
Our governance philosophies are based on transparency accountability values andethics and are an integral part of the management's initiative in its pursuit towardsexcellence growth and value creation. Our commitment towards highest standards of ethicalgovernance practices and disclosure practices thereby ensure that the affairs are managedin the best interest of all stakeholders. Being a listed company at various exchanges wecomply with the applicable guidelines of the Listing Regulations as amended with respectto Corporate Governance including the appointment of the Independent Directors andconstitution of the committees. Our Board of Directors comprise 6 (six) board members outof which 3 (three) are independent. The Board meets at least once a quarter to review ourperformance and provide their valuable insights.
The uniqueness of our brand helps build a positive perception. The Management'sinvolvement in brand building and an all-pervasive team effort has only made it a reality.These result into higher engagements with various stakeholders. Therefore we view it asan investment which drives our sales and increases our return ratios.
Incredibly looking ahead
As we start the beginning of a new decade our focus will continue to remain ondelivering our strategy and striving to ensure our Company remains strong resilient andable to deliver consistent value to our stakeholders over the long-term. Sustainabilityand partnership will remain important priorities and will play an increasingly importantrole across our business.
Finally I would like to thank all our employees and the senior management team. Theirhard work and determination to continue to drive improvement and to act in accordance withour purpose and values are central to how we continue to perform today and tomorrow.
With best wishes
Rama Shankar Gupta
Chairman and Managing Director