It gives me great pleasure to welcome you to the 19th Annual General Meetingof your Company and share with you the growth and developments realized by our economy andyour Company.
The year 2017-18 was marked by various structural reforms by the Government.Significant steps like introduction of Goods & Services Tax (GST) FDI (Foreign DirectInvestment) opportunities resolution of banks NPAs (non-performing assets) andrecapitalization were witnessed during the year. Export growth strengthened further inFY18 after remaining muted for last couple of years.
World Bank estimates India's economic growth to accelerate to 7.3% in FY19 and 7.5% inFY20 as against an estimate of 6.6% growth for FY18. The bank estimates strong growth inprivate consumption and services would continue to support India economic growth.Introduction of GST is expected to support economic activity and fiscal sustainabilityover the long term by reducing the cost of complying with multiple state tax systemsdrawing informal activity into the formal sector and expanding the tax base. Moreoverprivate investments are expected to revive as the corporate sector adjusts to the GST.
With the overall outlook of country's economic growth looks promising weighing scalemachine industry is also slated to grow and shows promising outlook going ahead. Theindustry is expected to rise exponentially in the coming years led by rise in demand forweighing scales in various institutions and retail stores. The government has allocatedtotal budget expenditure of Rs 52800 crore for FY19 for Health & Family Welfarewhich is about 11% increase over the last year's budget target for the segment. There is asignificant scope for enhancing healthcare services in rural areas considering thathealthcare spending as a percentage of GDP is very low as compared to other countries.Rural India which accounts for over 70% of the population is set to emerge as apotential demand source for weighing machines.
Demand from Aanganwadis has been really encouraging and outlook looks promising for theperiod going ahead. Increasing awareness in terms of obesity and malnutrition in rural& semi-urban areas have been one of the key driving factor for our growth. ICDS(Integrated Child Development Services) is a welfare programme by the Government whichprovides food pre-school education and primary healthcare to children under six years ofage and their mothers. These services are provided from Aanganwadi Centres establishedmainly in rural areas. As these Aanganwadis lack proper measures to weigh infants andchildren Government aims to replace all the manual weighing scales with the electronicweighing scales. With Aanganwadis being set up in small villages and towns this will leadto rise in number of Aanganwadis and generation of good demand for electronic weighingscales.
Your company is eying for large orders from both State and Centre Governments. It hasrecently received orders for mother and child weighing scales from state governments ofMadhya Pradesh
Telangana Maharashtra and Orissa. Further developments on this front will improve therevenue growth and profitability of the company during the current year.
During the year your company has received orders for 35000 mother and child weighingscales. Madhya Pradesh Government has ordered 21000 machines 6000 from Telangana 5000from Maharastra and 3000 from Orissa. Besides the company has received orders for 11000platform machines with latest technology of Bluetooth from Govt of Telangana. 1400 IGMS(Infant Growth Monitoring System) machines in Kolhapur. Besides the company has alsoreceived for 22616 digital weighing scales order from the Women Development & ChildWelfare Department in Andhra Pradesh.
During the year your company has reported revenues of Rs 38.83 crore EBIDTA of Rs 3.77crore and Profit after tax of Rs 3.07 crore.
Our R&D team carries out regular research & analysis along with client studiesenabling us to be at par with international players so that there is an ongoing innovationwhich is reflected in all our products. We believe that we are well positioned to takeadvantage of the immense opportunities available for growth of our business.
I am confident that Nitiraj Engineers with its committed associates excellentcustomers wide product range and strong and stable management team will continue todeliver significant value to all its stakeholders in the years to come and will achieveevery milestone in the journey to success.
I would like to thank all our shareholders investors employees customers and allother stakeholders who have always stood by us. With our focused business strategydynamic management team and a pool of professional talent we are poised for growth.
I look forward to your continued support in the coming years to take this Company tothe next level of growth and a Leader in Electronic Weighing Scales and Systems in India.
Chairman & Managing Director