"We did not let the Pandemic affect our growth. Been a difficult year butwe^tillremained steadfast".
We are living in Covid times. The external environment is more dynamic than ever evenas we adapt to a new normal and strive to contain the effects of the second wave of thepandemic. Collectively the past year has tested sectoral strengths as the pandemicinitiated deep changes that have redefined industries as a whole. In this context it isbecoming increasingly clear that those enterprises operating with a long-term viewcognisant of emerging realities and agile enough to adapt are the only ones that cansurvive and grow.
For the past few years Oriental Rail Infrastructure Limited (ORIL) has built anenterprise that can not only withstand external shocks but can also grow significantlyand contribute to society.
This has held true even in a watershed year such as FY2021 during which we continuedto create value for all stakeholders. Reflections of this value creation have beencaptured throughout this report.
A year that stood apart FY2021 was a year that exposed both the strengths and thefault lines of the Indian economy. The year started with the pandemic-induced lockdownsimpacting business at both broad and granular levels.
Resilient performance with collective efforts
At ORIL we continued to deliver on our investor promises and prioritised the healthand well-being of our people and communities. Even after initial total lockdown and laterphase wise lifting the Company was able to achieve total consolidated turnover of Rs. 220crore and profit aftertax of Rs. 15.42 crore.
Performance by our Subsidiary Company
ORIL subsidiary company M/s. Oriental Foundry Private Limited ('0 FPL') revenue hasincreased toRs. 127.26 crore i.e. up by 26.46% and Net Profit after Tax at Rs. 4.72 crorewas down by 14.85 % from previous year.
The Company had successfully bagged several orders of Wagons Bogie and CouplerfromContainer Corporation of India Limited Jindal Rail Infrastructure Limited Braithwaite& Co. Limited and Indian Railway.
The Board recommended a final dividend of Rs. 0.20 (Rupees Twenty paise only) i.e. @20% per equity share of the face value of Rs. 1 each for the financial year ended March31 2021. The Company continues to declare a dividend in its 5th consecutiveyear.
Expansion of Business
We are continuously taking initiative to develop new products and upgrade our products.To realise our aim we have a strong and well-equipped Research & Development lab.R&D's contribution in ORIL growth has been noteworthy.
Company has set up the huge Rexene plant in Aghai for manufacturing Rexene with acapacity of 5 lakh meters per month. The Company's output will be supplied to IndianRailways as well as to industries which consume artificial leather like upholsteryleather and automobiles producers commercial and residential upholstery stationeryluggage & bags with its brand 0RVIN.
With advanced Technology and with great research we are also focused to expand theproduction of Silicon Foam Blocks which is used as a cushioning material for manufacturingSeat and Berths specialized for Railway coaches.
At ORIL we are powered by the ambitions of hundreds of our employees who strive tooutperform every day. With their vigour and highly conducive market prospects we arecertain that we will grow faster and build better.
An Optimistic Outlook
The future appears to be positive as lockdown is lifting statewise and India adapts tothe new normal. The Central Government and State Government are ensuring that the entirepopulation of India gets fully vaccinated by the end of 2021. The announcements made bythe government to support the economy are expected to bring results in the near-to-mediumterm and the potential for India to emerge as a manufacturing hub is stronger than ever.Indian Railway will play a key role in building the India of the future.
The government of India has been consistently focusing upon enhancing the railwaysnetwork throughout the country. With Railways being among the major focus areas for thegovernment there lies immense scope for product growth and hence opportunity for ORIL tocapitalise on them.
ORIL & its subsidiary OFPL has emerged as a Total Rail Solution provider equippedwith the latest technologies. It will keep the industry engaged for years to come at abrisk pace.
We believe that tomorrow belongs to those who prepare for it today. Past patternscannot always be applied to find answers for tomorrow. That is why we have to be flexiblein our approach to maintain the Company's leadership in the market. Your continued supporthas enabled us to progress this far and look forward to continuing this journey andachieving greater heights together.
|Warm regards |
|Saleh N. Mithiborwala Chairman of the Board |