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Sarla Performance Fibers Ltd.

BSE: 526885 Sector: Industrials
NSE: SARLAPOLY ISIN Code: INE453D01025
BSE 00:00 | 10 Jul 18.00 -0.40
(-2.17%)
OPEN

18.15

HIGH

19.00

LOW

17.50

NSE 00:00 | 10 Jul 18.00 -0.25
(-1.37%)
OPEN

18.65

HIGH

18.65

LOW

18.00

OPEN 18.15
PREVIOUS CLOSE 18.40
VOLUME 5051
52-Week high 28.00
52-Week low 10.85
P/E 3.85
Mkt Cap.(Rs cr) 150
Buy Price 17.95
Buy Qty 593.00
Sell Price 18.35
Sell Qty 227.00
OPEN 18.15
CLOSE 18.40
VOLUME 5051
52-Week high 28.00
52-Week low 10.85
P/E 3.85
Mkt Cap.(Rs cr) 150
Buy Price 17.95
Buy Qty 593.00
Sell Price 18.35
Sell Qty 227.00

Sarla Performance Fibers Ltd. (SARLAPOLY) - Chairman Speech

Company chairman speech

Dear Shareholders

“When the going gets tough the tough get going.”

It gives me immense pleasure to share with you another year of growth and positivedevelopments at Sarla Performance Fibers amid the signs of global and India economicslowdown. During the year gone by our revenue increased at single digit growth rate andour pro tability was 19% lower as against FY19 mainly due to some of the non-productiveexpenses incurred at our US facility (shut down and expenses minimized in the past oneyear).

During FY19 we commissioned the Nylon POY project at Silvassa with a capacity of 20tons per day. This is an import substitute project and ensures consistent supply of POYfor further process. This would help us continue with our forward integration to supplyvalue added yarns to garment/niche end user applications in India and Overseas customers.The total cost incurred on the Nylon POY project is INR 14.16 cr and we have also spentmore than INR 10 cr on upgradation of plant and machinery. We made these investments fromour own cash generation and would continue to enhance capability going forward. We expectto incur INR 20 cr of capex this year towards Purchase and Upgradation of Plant andMachinery for Expansion of our Existing Facility.

Due to effective finance management we were able to keep the nance cost in checkdespite funding the new capex project and increase in revenue. Our cash and bank balanceincreased to INR 74.82 cr as at end of FY19 vs INR 62.78 cr as at end FY18. Our debt toequity ratio at 0.44x is healthy and the long term debt to equity ratio is 0.18xconsisting of mainly working capital loans. The recent INR depreciation vs the USD andother currencies will be positive for us if it sustains because almost 2/3rd of ourrevenue is in foreign currency.

Our aim is to remain positive and expand possibilities for the company within India andOverseas markets through expanded product offerings for niche end user applications. Thishas been our forte and the key reason behind our success for the past twenty five years.We believe that the worst for us is behind in terms of the investments in US facilitywhich have not yielded positive results since we made investments in FY14 onwards. Ourefforts are on to revive it through a suitable partnership or other strategic efforts.

Regards and Best Wishes

Krishnakumar Jhunjhunwala

MD & CEO