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Shahlon Silk Industries Ltd.

BSE: 542862 Sector: Industrials
NSE: N.A. ISIN Code: INE052001018
BSE 14:06 | 03 Aug 81.15 -0.85
(-1.04%)
OPEN

79.55

HIGH

82.15

LOW

79.55

NSE 05:30 | 01 Jan Shahlon Silk Industries Ltd
OPEN 79.55
PREVIOUS CLOSE 82.00
VOLUME 34416
52-Week high 105.05
52-Week low 33.10
P/E
Mkt Cap.(Rs cr) 145
Buy Price 80.15
Buy Qty 275.00
Sell Price 84.50
Sell Qty 5.00
OPEN 79.55
CLOSE 82.00
VOLUME 34416
52-Week high 105.05
52-Week low 33.10
P/E
Mkt Cap.(Rs cr) 145
Buy Price 80.15
Buy Qty 275.00
Sell Price 84.50
Sell Qty 5.00

Shahlon Silk Industries Ltd. (SHAHLONSILK) - Chairman Speech

Company chairman speech

Dear Shareholders

I am extremely delighted to present the Annual Report for the financial year 2020.During the year the company achieved a total revenue of Rs. 383 crore. We believe thatprofitable companies do well in the current scenario of pandemic and any other volatilemarkets. We have been continuously focusing on increasing our margins rather thanachieving higher sales volumes hence we have now shifted our focused more on revenue frommanufacturing business and lower in trading business. Our focus on increasingprofitability is paying off which is evident from the increase in EBIDTA margins to 8.05%during the financial year ended 31st March 2020 as against EBIDTA margin of 7.09% forfinancial year ended 31st March 2019. We are not an exception to the impact of pandemicduring the last quarter of the financial year 2020 which had not only impacted ourrevenues but also our profitability.

Your company celebrates 36 glorious years in supplying yarns and fabrics (fashionshirting & suiting furnishing and technical fabrics) to leading trading housesgarment exporters and fashion brands in India and across the world.

The demand for polyester yarn and fabric has been on the rise on account of increasingdemand pick up across the World and in India. The company has been proactivelycapitalising on the Indian Textiles sector growth opportunities and increased its yarn andfabric manufacturing capacities over the last three decades. The total installed capacityfor Fabric manufacturing is 40 million meters per annum while it is 22200 tons per annumfor manufacturing Yarns.

The company strives to offer innovative customized and value-added products to itscustomers through constant research and innovation. With all these the company isconfident of tapping more potential markets with its products.

Our large customers are garment manufacturers in Delhi Mumbai and Bengaluru who arethe garment manufactures of top brands like M&S Matalan H&M Ann Taylor VanHeusen Allen Solly etc.

The offices were shut down during the lockdown phase but the company adopted the workfrom home policy for office related work during the entire lockdown duration. With thelifting of the partial lockdown restrictions the company has restarted its operations atmanufacturing plants and at Surat offices in a gradual manner from April 27 2020. At allour manufacturing locations necessary arrangements of sanitization selfquarantine andscreening have been made and are continuing to ensure a safe environment for ouremployees.

During the pandemic the existing fabric manufacturing capacities were utilized for themanufacturing of the fabric meant for manufacturing of Personal Protective Equipment (PPE)kits. South India Textile Research Association the nodal agency for approving fabric hadapproved the fabric. This fabric also caters to a wide range of protective apparel for themedical pharma biotechnology electronics and food & beverage industry.

The performance in the first half of the current year had been subdued owing to thelockdowns imposed by the government but we are witnessing a very good revival in demandin the second half.

The company is putting all efforts to convert this challenge into an opportunity byrationalizing the manpower cost and downsizing the other cost centers while also puttingits efforts to retain and add more customers for sustaining and increasing the demand.There is a strong and steady flow of orders and we expect it to continue through theentire second half of the year and further.

We are witnessing a strong recovery in sales because of the overall improvement inretail and e-commerce sales. The Company is witnessing an improvement in demand as themarkets continue to recover from the slowdown caused by the pandemic. We are confident ofa pick-up in demand in both domestic and export markets as the supply chain disturbancesand other constraints are expected to get normal.

The organized apparel industry has seen a shift from brick & mortar stores to acombination of online & offline model which eventually lead to the rise of brick andclick model these days. E-commerce is where all action is and the women's wear segment isone of the segments which has been doing well. This would augur well for our domestic andglobal branded clothes manufacturers which in turn is going to benefit us.

Furthermore Dilution of the non-core assets has enhanced cash flows of the company tothe tune of Rs. 18.50 crore which has been used to reduce debt and other working capitalfacilities.

At Shahlon we ensure that the changing market conditions shouldn't negativelyinfluence the position of the company and hence take precautionary measures for the samein anticipation. The financial position of the company remains stable with healthy cashflows. We always believe in staying close to our core strengths and speak the samelanguage with regard to our commitment towards the stakeholders.

I would like to take this opportunity to thank all our stakeholders for the continueddedication and belief they have shown in us as well as look forward to the long-lastingjourney ahead.

With best wishes

Chairman

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