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Power & Instrumentation (Gujarat) Ltd.

BSE: 535073 Sector: Engineering
NSE: PIGL ISIN Code: INE557Z01018
BSE 05:30 | 01 Jan Power & Instrumentation (Gujarat) Ltd
NSE 00:00 | 07 Dec 59.00 -1.55
(-2.56%)
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Power & Instrumentation (Gujarat) Ltd. (PIGL) - Chairman Speech

Company chairman speech

Message From Managing Director

Dear Shareholders

It gives me an immense pleasure to welcome you at our 37th Annual General Meeting. Theyear 2020-21 has been the most challenging year for the company in its history. We areamid an unprecedented pandemic and the end of which is far from certain. The pandemic haschanged the way we do business interact professionally socialize and how we live ourlives. This pandemic accentuated the fault lines in our public health delivery systemsresulting in increased attention and resources to the sector. Needless to add it hasimplications for our business too. We need to build in increased resilience contingencyplanning in our operations and be prepared to be nimble and flexible in meeting marketconditions.

The first quarter of 2020-21 started with the lockdown impacting our businesssignificantly. In the second and third quarters there was a quantum improvement inbusiness activity. The Indian economy was beginning to regain normalcy in the fourthquarter from January-March 2021.

The Company took substantial measures to mitigate the fallout of lockdowns which meantlower revenues profits and increased working capital. We primarily focused on reducingthe working capital cycle which meant reduction of inventory and debtors

- this incidentally was in sync with our long term goal of balance sheet improvement.

Furthermore the Company also worked to optimize expenses.

These measures resulted in the following:-

FY March 2021 FY March 2020
Particulars (Rs. in lacs) (Rs. in lacs)
Inventory 284.83 782.29
Debtors 3699.30 2398.96
Borrowings 1797.34 1757.70
Finance cost 333.80 410.42
Expenses 759.97 837.27

Our mitigation strategy has ensued in the reduction of Rs. 76.62 lacs in finance costand Rs. 77.30 lacs in other expenses.

Your Company has continued to focus on its Contracting business. Due to the lockdownand social distancing measures large Infrastructure related development activities wereshut down for a substantial period during past year.

The pandemic affected the larger cities to a greater extent. Your Company benefited byvirtue of its presence in Tier II and III cities. The channel business sustained and evensaw some growth during FY'21. This segment helped in improving cash flows during the yearand was strategically important in generating revenues during complete lockdown.

The enterprise segment was probably the slowest to recover during the year. We saw anuptake from the end of the second quarter and a semblance of normalcy from the fourthquarter. The processing activities of your Company was lesser as compared to FY'20. Thisactivity was strategically importantand contributed to a range of Services andprofitability.

Financial Performance in FY 20-21

The Company's performance was impacted in Q1 of the year but your company managed torecover and close the year on stronger note and satisfactorily.

1. The revenue stood at Rs. 8543.82 lacs for FY'21. Contracting revenue contributed to95% of the overall sales which is 6% more as compared to FY'20.

2. EBIDTA was at Rs. 822.16 lacs during Fy'21 and it is significant to note that EBIDTAwas ( Rs. 334.54 Lacs ) in the first half of FY'21. There was a substantial recovery inthe second half and helped to close the year on a positive note.

3. PAT stood at Rs. 345.83 lacs for FY'21 as compared to the PAT of Rs. 300.21 lacs inFY'20.

FY March 2021 FY March 2020
Particulars (Rs. in lacs) (Rs. in lacs)
Revenue 8543.82 8901.43
Contracting(%)
EBITDA 822.16 860.11
Margin 9.62% 9.66%
PBT 464.78 419.15
PAT 345.83 300.21
Margin 4.05% 3.37%

Key Performance Highlights

The overall performance for the financial year was understandably subdued as comparedto the previous year FY'20. This was primarily due to the pandemic and the lockdowns whichsubstantially affected sales in Q1 and to a lesser extent in Q2 of the year. It is worthyof acknowledgement that

the Management provided the right impetus to company's operations for improving thefinancial situation when the economy opened up.

The Way Forward

The Company cognises that pandemic and its impacts on economy during the year werebeyond control for the business fraternity and Companies like us your Company wasobservant and did believe that India and the World would have to live with COVID 19 for afew more years. The prudent and conservative measures that the Company implemented overthe course of last year will hold in good stead for the coming financial year. TheInfrastructure Industry is the keystone for the success of any economy. Electricalmaterials and Services are essential for the functioning of any industry. We have observedthat despite lockdowns construction and the electrical material segment are amongst theearly risers for commercial activities. PIGL will again chart the growth trajectory incoming year as soon as the lockdown is over. We will be continuing our focus on theContracting segment while steadfastly managing the balance growth across all our businessverticals so that they provide strategic thrust to the Company to continue its growthjourney.

Conclusion

I am happy to share that your Company took the utmost care to maintain COVID protocolsthroughout the year. I would like to convey my deepest appreciation to all our employees.They have stood by the Company in these trying times. My sincere thanks and appreciationto my fellow Directors on the Board for their guidance and constant encouragement. Mygratitude to our bankers customers and suppliers. On behalf of the PIGL Board I alsothank you all our valued shareholders for your continued support.

Warm Regards

Padmaraj Pillai

Managing Director.

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