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Kirloskar Electric Company Ltd.

BSE: 533193 Sector: Engineering
NSE: KECL ISIN Code: INE134B01017
BSE 00:00 | 23 May 15.00 -0.05
(-0.33%)
OPEN

15.30

HIGH

15.60

LOW

14.95

NSE 00:00 | 23 May 15.00 0
(0.00%)
OPEN

14.75

HIGH

15.95

LOW

14.75

OPEN 15.30
PREVIOUS CLOSE 15.05
VOLUME 3759
52-Week high 28.00
52-Week low 13.00
P/E
Mkt Cap.(Rs cr) 100
Buy Price 15.00
Buy Qty 12.00
Sell Price 15.00
Sell Qty 288.00
OPEN 15.30
CLOSE 15.05
VOLUME 3759
52-Week high 28.00
52-Week low 13.00
P/E
Mkt Cap.(Rs cr) 100
Buy Price 15.00
Buy Qty 12.00
Sell Price 15.00
Sell Qty 288.00

Kirloskar Electric Company Ltd. (KECL) - Chairman Speech

Company chairman speech

Dear Shareholders

The year 2017-18 continued to be another challenging year Indianeconomy is projected to grow at a lower than expected rate due to the "transitoryeffects" of goods and services tax (GST). Implementation of the GST had led to adownward revision in 2018 growth projections. Industrial investment has remained weakvery few new projects or expansions are happening in Core sectors viz Cement SteelSugar Infrastructure and also in solar sectors and Real estate. We are taking a cautiousapproach for our inverter duty transformers due to inconsistency observed in the powertariff. The sluggishness in real estate industry has severely impacted our monetizationefforts.

We have successfully managed the operational and supply chaintransition to comply with the Governments quality control order that permits only themanufacture and sale of energy efficient motors.

Few of the major achievements are:

Manufacture of large flame proof motors of 400 kW 2 pole and 560 Kwpole 6600VAC Motors. Manufacture of 870kW 6600V 750rpm Vertical CACA in MPA500VC Frame ACMotors a/c Manufacture of 25 MVA ZG027/1 Transformer A/c RSP

Manufacture of 11KV slip ring rotor motor in TEFV construction 350KW1000RPM in SDX500FSPL frame Manufacture of 4000kW 1000 RPM 6600V Wound Rotor AC Motor forCement plant.

Completed the design development and successful testing of IP45Enclosure for 2750kVA Cast Resin Dry Type transformer Further your company has taken therequired steps for continuous optimization of manufacturing and operational costs and thebreak in levels. Exposure to unsecured loans has been drastically decreased.

German Subsidiary's (Lloyd Dynamowerke GmbH & Co.KG [LDW])Bankruptcy and impairment of investment has adversely affected the operations of thecompany for the last three years. Further there has been continuous erosion of workingcapital due to cash losses. Your company has been operating at much below the earningsbefore interest deprecation and taxes (EBIDTA) levels.

During the year under review your company has faced strong challengesand has tried to mitigate those using its core strengths in design and development robustmanufacturing practices focus on the suitable market segments and also entering the newmarkets. Your company has been taking all the possible steps to mitigate the losses. Yourcompany's order booking continues to be strong.

Your company is now undertaking restructuring of loans and as such hasalso approached the financial institutions for working capital infusion. Further thecompany is also planning to augment its working capital by monetizing the noncore andsurplus assets. These efforts are expected to yield results during the current year andthe operation levels will improve. Your company will continue with rigorous efforts to cutthe costs increase the operational efficiency increase in productivity and alsoimproving skills of human resources by undertaking a number of measures. I express mysincere thanks to all the shareholders lenders banks financial institutions customersdealers vendors and all other stake holders for their support extended. I express mysincere thanks to all the employees of the company for their hard work and supportextended during these trying times.