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Pradeep Metals Ltd.

BSE: 513532 Sector: Engineering
NSE: N.A. ISIN Code: INE770A01010
BSE 00:00 | 01 Apr 41.15 0.85
(2.11%)
OPEN

43.45

HIGH

43.95

LOW

35.60

NSE 05:30 | 01 Jan Pradeep Metals Ltd
OPEN 43.45
PREVIOUS CLOSE 40.30
VOLUME 146
52-Week high 70.90
52-Week low 25.70
P/E 4.75
Mkt Cap.(Rs cr) 71
Buy Price 36.40
Buy Qty 32.00
Sell Price 40.95
Sell Qty 50.00
OPEN 43.45
CLOSE 40.30
VOLUME 146
52-Week high 70.90
52-Week low 25.70
P/E 4.75
Mkt Cap.(Rs cr) 71
Buy Price 36.40
Buy Qty 32.00
Sell Price 40.95
Sell Qty 50.00

Pradeep Metals Ltd. (PRADEEPMETALS) - Chairman Speech

Company chairman speech

PRADEEP METALS LIMITED ANNUAL REPORT 2010-2011 CHAIRMAN'S REPORT Dear Shareholders, It is my pleasure to present the performance of your Company during the last fiscal year 2010-2011. After facing one the most difficult year in 2009 - 2010 due to global turmoil, the Company has swiftly come back on the growth path. Your Company has not only recovered the lost ground but also achieved the best performance in terms of turnover and profitability, with the growth of 70% in revenues and more than 4 fold increase in profit before taxation. The Company has been able to pay dividend of 10% p.a. on Optionally Convertible Cumulative Redeemable Preference Shares (OCCRPS) for 2 V years and to recommend payment of dividend of 10% on Equity Shares. Your Company has negligible long term debt and enjoys healthy relationship with Union Bank of India, sole bankers, who have provided credit facilities of Rs.41.77 crores. The Return on Equity (RoE), before deferred tax liability, stood at 22%, which is above the industry standard. With the planned growth in the business, the expected lag effect of the current fiscal economic recovery in domestic, USA and European countries and our strenuous production efficiencies, we are confident of achieving higher growth in the coming years. As per the economists, India expects to grow at a rate of 8% to 9% in the next 5 years. However, maintaining this kind of growth consistently in the long run is not easily achievable without facing certain challenges. The major challenges are inflation of over 8% and fiscal deficit. With improved focus of the Government on reforms in agriculture sector, monitory policies adopted by Reserve Bank of India and good monsoon during the current fiscal year, the inflation should settle at comfortable levels. Expected cash flows from disinvestment in pipeline coupled with good growth in the economy, the Government should achieve the target set for fiscal deficit of 4.6% during the current fiscal. Let me take you through the Company's journey in the last three decades of its presence in the business of forging. When we started our business, we were predominantly catering to the automobile industry. This sector has undergone lot of changes in the last two decades. The auto forging business is cyclical in nature, highly cost competitive and low margin business. Accordingly, your Company had taken a conscious decision to diversify the focus to alternative industrial forging market. We were one of the early players to recognize the opportunity in non-automotive segment of the forging business in the country. Your Company has always excelled in technology adoption since inception. Being a technologically advanced and precision design Company, we have decided to concentrate our focus towards the niche segment of non- automotive forging business. There is a tremendous opportunity in this segment. Your Company has been recognized as one of the leading players in this segment. Our strategy of diversifying focus towards the non automotive segment has served us very well over the years. Your Company has been exporting predominantly to developed countries with good mix of customers from USA, Europe and Asia. Your Company has new esteemed customers also in South America. Multinational engineering companies are our major customers. We have maintained good relationship with all our customers across the world. Because of this, your Company has significant repetitive orders from customers. Your Company's products have received accolades across the world, especially on the grounds of design, technology and dependability. Whoever has visited our state of the art manufacturing facilities situated at MIDC, Rabale, Navi Mumbai, has expressed their desire to work with us. Your Company is also planning an expansion of its manufacturing capacity by setting up a new unit in the state of Gujarat in order to meet the rising demand for its products. During the year, the exports of the Company have grown by 68% over the last year. This has been achieved mainly due to high end value added products, timely execution of the orders, greater consumer satisfaction and improved market conditions in USA and Europe. Your Company is confident to deliver consistent growth on exports front in the coming years. Your Company's focus on maintaining high level of quality consciousness is evident from its continued certification as an ISO 9001:2008 Company. Your Company makes concerted efforts for constant improvement in quality of its products. It is a matter of pride that the Company has also been approved to supply Nuclear Quality forgings to Europe and USA. Your Company has added several machines for precision machining of forged products and also enhanced its die making capability by installing modern CNC/VMC machines and Analyses software for die design. These measures will further improve the quality of finished components. Your Company has been professionally managed and is under the guidance of esteemed personalities on the board of directors. I would like to take this opportunity to place on record the efforts of our employees and each every stakeholder for the confidence imposed in the management and our sole bankers, Union Bank of India who have contributed in this commendable growth of the Company. Pradeep Goyal Chairman