Dear Fellow Shareowners
The The year 2018-19 saw our economy facing some tough challenges. Highlights of theIndustrial Outlook Survey of the Manufacturing Sector for Q1:2019-20 released by theReserve Bank of India on August 07 2019 -
In the assessment of respondents order inflows output and employmentconditions remained tepid in Q1:2019- 20.
Sentiments on exports remained largely unchanged from the previous quarter butin the optimistic zone; on imports however optimism waned.
Optimism on the overall financial situation was maintained with improvedsentiments on availability of finance from banks and internal accruals.
Manufacturers increased selling prices in Q1:2019-20 to pass on pressuresemanating from interest payments on borrowings cost of raw materials and salary expensesbut pessimism on profit margins continued to prevail.
Overall business sentiment remained upbeat.
Respondents expect modest improvement in demand conditions in Q2:2019-20.
The outlook on the overall financial situation remains optimistic albeit withsome moderation in sentiment on availability of finance from internal accruals and banks;optimism on availability of finance from overseas in Q2:2019-20 rose slightly.
With moderation expected in the cost of raw materials manufacturers are upbeatabout profit margins in Q2:2019-20 despite moderation of optimism on selling prices.
The Business Expectations Index (BEI) edged down from 113.5 in Q1:2019-20 to112.8 in Q2:2019-20.
It is expected that the budget proposals will lead to improving the ease ofliving and reducing the pain of the citizens' as envisaged by the Hon'ble FinanceMinister.
We have always believed in a judicious mix of traditional and new business. While newbusinesses with their inherent risks need a long lead-time to nurture and growtraditional businesses can provide us with stability and predictable cash-flows. All ourtraditional businesses have consolidated in the past few years.
Given the current stage of growth in the Indian economy we expect the demand for theCompany's products to rise in the coming years. As a Company we have always believed inbuilding on the core.
This combined with hard work and dedication of our entire team has helped your Companymaintain a profitable path even during uncertain times.
I am grateful to the Board of Directors for their unwavering support and guidance. Ialso take this opportunity to express my gratitude to all our stakeholders who havereposed their trust in us and extended their constant support.
With best wishes
Chairman 13th August 2019