I cordially welcome you all to the 48th Annual General Meeting of JashEngineering Limited. I hope you and your family are keeping well in these tough times withso many uncertainties facing us on recurring basis. Together we navigated through anunprecedented pandemic and now face the consequences of disrupting war in Europe. I amsure that with the support of all the stakeholders we would keep on meeting all suchchallenges as they come and come out stronger in future.
On behalf of the Board of Directors it is my privilege to present toyou our Annual Report for the fiscal year ended March 31 2022. We are pleased to reportthat even in these trying times we have maintained a strong growth momentum driven by ahealthy order book with a consolidated revenue growth of 23.6% and consolidated PAT growthof 5.4%. In FY 2021-22 the company reported revenue and EBITDA of Rs. 374 Crore and Rs.52.8 Crore respectively as compared to Rs. 302.3 Crore and Rs. 54.5 Crore in FY 2020-21.The crisis in Europe triggered a spike in several commodities prices that eventually ledto a rising raw material costs impacting our margins. Inspite of this the consolidated netprofit was up at Rs. 32 Crore in FY 2021-22 as against Rs. 30 Crore the previous year.
Furthermore our US subsidiary Rodney Hunt has turned the corner and isnow profitable. It increased its revenue by 27% to USD 17.8 million and is now one of thefirst four in water control gate business in the United States. This increase in revenuewas largely driven by Orange manufacturing facility?s performance as revenue exceededUSD 8 million this year. Consequently Rodney Hunt has also finally been able to getbanking and bonding facilities for the FY 2022-23 which would be beneficial for improvedfinancial management and in giving bonding for orders where clients insists to furnishorder execution bond.
I would also like to highlight several developments related to thecurrent financial year. The Cast Iron Gates manufacturing facility at SEZ Unit 3 wascommissioned in April 2022. With this development the dependency of export production ondomestic units is now restricted to just sourcing of castings from Unit 1. This will freeup our capacities in the domestic market and enable us to be more aggressive in the localmarket.
The company is aggressively adding new products to its expandingproduct portfolio. In line with a new agreement with Invent was signed in April 2022 forAeration and Mixing Products and the company is also adding Vortex Grit removal system andCombined Screening and Grit removal pre-fabricated system for small sized plants in itscurrent years new product offering. Commercial production of these products is expected tostart by end of this financial year and will get established by financial year 2023-24.
To make these new products as well as the existing products a newstainless-steel products plant will be built up at Unit 2. The work on this new plant willbe started in October 2022 at an approximate cost of Rs. 9.15 Crore and further Rs. 3.85Crores will be invested in various other units to enhance and upgrade their facilities. Anew plant is also being set up at Shivpad Chennai at a cost of Rs. 12 Crores to enableShivpad grow its revenue to over Rs. 50 Crores by financial year 2026-27.
Our order book is largely diversified in terms of product mix andgeographical locations and is a testimony to our capabilities to perform across categoriesregardless of location. As on 1st August 2022 our total order book stood at an all-timehigh of Rs. 586 Crore of which Rs. 435 Crore worth of orders are for supply outside India.
Positive progress in new projects of MCGM Bangalore & Pune haveimproved our prospects in the Indian market. New projects worth over Rs. 30000 Crore areawarded in various cities of India and this will assure sustainable growth in the domesticmarket for the products made by the company for the next four years. Our strong order bookposition will help us lead into another year of significant growth. With SBI finallyreturning shares pledged by the promoter for a loan taken for the expansion of the companyin the earlier years we project to our investors a financially strong & healthycompany which is ready to grow exponentially in the coming years.
We are quite optimistic about improving our profitability in thefinancial year 2022-23. Margins are expected to normalize as most of orders underexecution in this year are considered with the increased raw materials prices and thepercentage of orders with old prices is expected to remain below 20% in this financialyear. We also expect higher profits on account of depreciating Indian currencysignificant improvements in operations of Rodney Hunt and the double-digit growth inrevenue expected this year backed by a robust consolidated order book position.
Finally I?d like to express my appreciation to the Board and theentire team for their continued support. Jash Engineering stands strong before you becauseof the tireless efforts of each of the employees and I want to thank our team of employeesfor taking the company from strength to strength. Lastly I want to take this opportunityto thank our valued shareholders partners and all stakeholders for believing in ourvision reaffirming their complete trust in our ability and walking alongside us on ourprogressive journey.
|With best regards |
|Mr. Pratik Patel |
|Chairman & Managing Director |