A very warm good morning to each and every one of you. It gives me immense pleasure inwelcoming you to the 35 th Annual General Meeting of the Company. The Company'saccounts for the year ended March 31 2018 along with the Directors' and Auditors'report a Letter to the Shareholders and Management's Discussion and Analysis havealready been circulated to you. I take this opportunity to brief you about the Company'sperformance in the Financial Year 201718 and the prospects for the years ahead.
India's economy has shown considerable resilience to the transitory effects ofdemonetisation and implementation of Goods and Services Tax (GST). The economy posted aseven-quarter high GDP growth of 7.7% in the exist quarter of FY 18 and a GDP growth of6.7% for the full year. India's macroeconomic indicators are encouraging. The fiscaldeficit has been cut to 3.5% of GDP.
1. Cement Industries
The Indian cement industry witnessed a pick-up in demand and after seven years' islikely to achieve good growth. The Government's thrust on infrastructure developmentremains the key growth driver. The revival of rural housing demand and the acceleratedpace of execution under the low cost housing program have supported strong volumeoff-take. Still FY 2017-18 was a year of challenges. The ban on sand mining and on theuse of pet-coke in major States impacted construction activity. The hike in import duty onpet coke from 2.5 percent to 10 percent and the increase in diesel prices pushed freightcost upwards. This resulted in higher operating costs. It impacted margins. Growth in thecement sector is estimated at around 8% in FY 2018-19. Indeed very good as compared tothe trends of the last few years. Telangana is undertaking major irrigation projects andAndhra Pradesh is committed to building a new capital city by FY 202122 which give a majorboost to cement industries in Southern India.
2. Electronic & PCB Industries
PCB industry is witnessing sizeable growth in the consumer electronics sector. In thecoming years the market in these segments is expected to grow around 40% to 50% ascompare to the current scenario. Your company intends to reap benefits from this growthand accordingly the turnover of PCB business may increase further.
3. Power Industries
India has the fifth largest power generation capacity in the world. The country ranksthird globally in terms of electricity production. Renewable energy is fast emerging as amajor source of power in India. Wind energy is the largest source of renewable energy inIndia. It accounts for an estimated 60 % of total installed capacity (21.1GW). There areplans to double wind power generation capacity to 20GW by 2022. India has also raised thesolar power generation capacity addition target by five times to 100GW by 2022.
PERFORMANCE OF OUR COMPANY
1. During fiscal year 2018 we recorded:
Overall revenue at Rs 19259.33 Lakhs is reduced by 2.86% (Rs. 19827.33 Lakhs in20162017)
Operating profit at Rs. 1095.35 Lakhs is reduced by 39.49% (Rs. 1810.05 Lakhs in2016- 2017)and
Net profit for the year at Rs. 763.39 Lakhs is also reduced by 34.38%(Rs. 1163.35 Lakhs in 2016-2017).
Thus the overall performance of the Company both in terms of revenue and earnings hasbeen reduced due to lower in production and increase in cost of coal. However the companyshall make its best efforts to position in robust condition so as to keep the bottleneckat bay
2. The Overall production also remained satisfactory. During fiscal year 2018 werecorded:
I. In Cement Division:
Production of Cement were 479663 MTS as against (485637MTS during theprevious year ended 31st March 2017).
Production of Clinker 448635 MTS as against (440730 MTS during the previousyear ended 31st March 2017).
II. In Electronic Division
The Company has produced 2096 sq. mts of Printed Circuit Boards as against1796 sq. mts during the previous year.
The division is continuously growing well and has established a loyal customer base.
We are sure that the division will definitely continue to keep strengthen the PCB edgeThe Company is taking the necessary steps to streamline the operations and expects toimprove the performance by further increasing the sales volumes in the coming years.
III. In Wind Power Division:
The Company has generated 2759112 units as against 3111983 units during theprevious year.
3. WASTE HEAT RECOVERY PROJECT:
Due to some technical problems the waste heat recovery project was not operated fromAugust 2017 to December 2017. The details of the unit generated for the FY 2017-18 arementioned below:
|Total generated units ||: 4269500 |
|Less: Auxiliary Cumulative ||: 483609 |
|Net Units ||: 3785931 |
KEERTHI INDUSTRIES LTD: IN PERSPECTIVE
We are working extensively on the people front from last couple of years and I am happyto state that at the management level we have built a quality bench strength.
Your Company continues to concentrate on cost reduction measures in all areas ofproduction and distribution to protect and improve its profitability. Despite of fewadverse conditions your Directors are hopeful that the performance of the company wouldachieve another level of milestone in producing the cement.
Your Company has been forefront of inclusive growth and since inception it has beenundertaking projects for improving the quality of life of the society at large. The coreareas of CSR activities has been promoting preventive healthcare education ruraldevelopment and welfare of the society at large particularly in the areas aroundCompany's manufacturing facilities. During the FY 2017-18 the co. has spent Rs.34.66 Lakhsfor Rural Development and Training to promote rural sports.
We are continuing and strengthening our initiatives on improving livelihood educationhealth and water quality for sustainable development in the areas we operate in.
I would like to take this opportunity to convey my appreciation for the valuableguidance provided by my fellow Directors on the Board. I place on record the excellentcooperation from the state and central government departments customers suppliersbankers' auditors and those living around our units and offices. I would particularly liketo acknowledge the dedication tireless support and commitment of the employees in theforward march of the Company.
Before I conclude I on my own and on Behalf of the Board would like to thank each oneof you our valued shareholders for your unstinted faith and support in our endeavours.We from the Board of Directors assure you of good governance in all the businessactivities of the company