The world is passing through uncertain times. It would be incorrect to begin a reviewof the last financial year without a mention of it at the outset.
The Novel Corona virus has created the largest pandemic in the recent history of theworld affecting most countries and people.
The abruptness of the virus incidence the speed of its spread and the extent of itsimpact represent a watershed in the modern history of humankind.
At Kriti Industries we were not affected as much by the virus impact during thefinancial year under review as much as we were during the first quarter of the currentfinancial year. As a business that is a part of the national eco-system the spread ofthis virus and the lockdown that transpired thereafter only reinforced our conviction fordistinctive strategic clarity.
An unpredictable environment as the one that we are passing through puts a premium onstrategic de-risking and the need for managed growth. This is a time when we believe thatthe truly sustainable companies will remain agile enough to resist a sharp downside inrevenues profits and margins and be even quicker once conditions revive.
So what companies are expected to endure?
At Kriti Industries we believe that companies that are in existence to address aspecific purpose - in our case transmission solutions - will find it
easier to protect their brand during such challenging periods.
We believe that companies that have extended beyond a generic positioning and addressspecific market segments - like Kriti Industries is positioned - stand a better chance tocompete across market cycles.
We believe that companies that are faithfully aligned between overarching strategy atone end and organisational structure at the other (in terms of size speed and austeritylike we have attempted) will be equipped to survive the downtrend and recover fastest whensentiment revives.
We believe that there is a greater priority in being low on long-term debt than everbefore. We have been funding growth from our annual surplus and the cash sitting on ourbooks while drawing down debt which we believe is sustainable from a long termperspective.
And lastly we believe that companies like Kriti Industries who have been able toretain their stakeholders will be better equipped to provide effective solutions fortheir customers.
The principal message then that I wish to convey to our shareholders is that KritiIndustries is securely positioned to protect its eco-system on the one hand and outperformsectoral growth when conditions improve.
|Shiv Singh Mehta |
|Chairman and Managing Director |