Dear valued Shareholders
I would like to begin by expressing my happiness of moving to the NSE Main board whichwill help our Company to be more visible and reach out to a larger stakeholder community.We believe that our Company is ready to accept this larger platform and reach newerheights in the foreseeable future.
This entire year we have all been suffering and recovering from the pandemic. We havefollowed all the norms and guidelines mentioned by the Government to make sure ouremployees have a safe working environment. Our Company had to shut down its operations fora few months but luckily post that most of our employees are local residents so we didnot face any labour related issues. While this has been both a very difficult andchallenging time for most of the B2C businesses in India I would like to say that we havebeen fortunate that our B2C business has not only been gaining good traction but it isalso growing well. To make better use of the manufacturing facility we startedmanufacturing protective face shields which is also the need of the hour. We are workingtowards coming out robust and strong post this pandemic and grow multifold as per ourplans and expectations.
On our financial performance for the year however our company inspite had a mutedyear. We recorded an increase in sales by 12.45% from Rs. 47.86 Cr in FY2020 to Rs 53.82Cr in FY2021. This was mainly on account of increased market demand especially commercialsales and growing B2C business. Increase in EBITDA by 117.12% and margin by 701 bps mainlydue to increase in sales and sale of products with lower stamping fees. PAT has increasedby 40.58% from Rs. 2.59 Cr in FY2020 to Rs. 3.64 Cr in FY2021 due to higher sales and costcutting measures due to innovation because of our R&D facilities.
Companies in the market are increasingly focusing on the introduction of compact andportable products in order to gain market share and focusing on the integration ofadvanced technology to achieve higher precision. Home-based business owners are the majorconsumers of portable weighing machines owing to the space-saving option ease ofportability and similar accuracy. The offline segment dominated the market with a shareof 94.5% in 2019. Brick and mortar retail stores including distributors specialtystores hypermarkets and supermarkets are the most preferred distribution channels. Mostconsumers prefer buying an electronic weighing machine from offline stores as they cancheck the quality and functionality of the products before buying them. In additionoffline stores offer after-sales support pertaining to issues related to products.Moreover it is easier to communicate to these stores for claiming guarantees orwarranties. Thus the abovementioned factors attract consumers to purchase products fromoffline retail outlets. Along with branch offices and dealer networks our Company hasalso entered online spaces to capture the untapped customers who prefer buying productsonline. For this the Company has employed specialized personals in the digital marketingteam to create awareness online and proceed online orders. This segment is picking up andwe believe will contribute significantly in the coming years. I would like to thank ouremployees for their persistent efforts Board for their guidance and support and all ourstakeholders for their consistent support and encouragement in all our endeavours. Wecontinue to look forward to your guidance and support motivating us to reach newerheights.
|With warm regards |
|Yours sincerely |
|Rajesh Bhatwal |
|Managing Director |