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Sterling Tools Ltd.

BSE: 530759 Sector: Engineering
NSE: STERTOOLS ISIN Code: INE334A01023
BSE 00:00 | 08 Dec 274.80 -18.15
(-6.20%)
OPEN

293.70

HIGH

295.95

LOW

272.50

NSE 00:00 | 08 Dec 276.30 -16.80
(-5.73%)
OPEN

297.50

HIGH

297.50

LOW

272.30

OPEN 293.70
PREVIOUS CLOSE 292.95
VOLUME 9812
52-Week high 322.00
52-Week low 116.05
P/E 28.16
Mkt Cap.(Rs cr) 989
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 293.70
CLOSE 292.95
VOLUME 9812
52-Week high 322.00
52-Week low 116.05
P/E 28.16
Mkt Cap.(Rs cr) 989
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sterling Tools Ltd. (STERTOOLS) - Chairman Speech

Company chairman speech

We consistently strive to be a future-ready company and our foray intoelectric vehicle component manufacuring endorse our belief. It would enable us to supportour customers and communities creating value for society.

Dear Shareholders

I am delighted to write to you and present our performance in thefinancial year 2021-22. I hope all of you are safe and healthy in these uncertain times.

Prior to discussing about our performance I would like to touch uponthe general macro-economic scenario. Following an equally turbulent 2020–21 the year2021–22 unleashed various challenges such as repeated waves of the pandemicgeopolitical tensions in Europe leading to high commodity and energy prices andunrestrained inflation.

The automotive industry was particularly impacted worldwide owing tothe semiconductor shortage. While demand for semiconductors kept roaring there was ashortage of supply which resulted in unmet demand.

The headwinds during the fiscal had impacted us as well. The lack ofsemiconductor availability impacted our customers? production lines. The prices ofenergy chemicals and conversion materials skyrocketed in Q4 of the fiscal and we couldnot pass on the cost to our customers.

However we did not let the challenges distract us and navigated thetough environment by bolstering our capabilities. We undertook a number of measures toimprove our efficiencies. Our team worked diligently to ensure that we were able tooptimise our operational costs. Additionally in order to ensure the steady supply of ourproducts to the last mile we kept a close watch on our supply chain focusing both oninbound and outbound logistics.

As a result what seemed as a challenging year ended as a strong yearfor Sterling Tools. We recorded a revenue growth of 33% from H 358.1 crore in FY2020-21 toH 474.6 crore in FY2021-22. Our EBITDA grew by 9% to H 73.3 crore in FY2021-22 from H 67.5crore in FY2020-21. Our PAT grew at H 29.7 crore in FY2021-22 from H 24.4 crore inFY2020-21 registering a growth of 22%. Our growth came both from our existing and newcustomers. These strong operating metrices have enabled us to keep our long-term debt atlow levels building a strong balance sheet in the process.

With growing concerns around environmental degradation and climatechange there is a pressing need to switch to greener solutions. The mobility ecosystem isgearing towards reducing its dependence on fossil fuels; and as a result the ElectricVehicle (EV) adoption is surging globally. Our management vision was to participate in theEV revolution in India and the world which presents a large number of opportunities. Withthat modest vision we established Sterling Gtake a few years ago in technicalcollaboration with a Chinese major player.

Jiangsu Gtake Electric is one of the leading players in the electricvehicle space in China to design manufacture and supply motor control units (MCUs) acrucial unit of the powertrain. We are working towards adding more products for the EVpowertrain and become a major player in the electric vehicle component space.

We consistently strive to be a future-ready company and our foray intoelectric vehicle component manufacuring endorse our belief. It would enable us to supportour customers and communities creating value for society. Our CSR initiatives focus onproviding healthcare and education. We will continue to invest in many such initiatives inthe coming years.

I would like to take this opportunity to thank our entire workforcewhose passion and perseverance have helped us cross milestones and create sustainablevalue for all stakeholders.

On behalf of Sterling I convey my deep appreciation to our valuedshareholders customers and all stakeholders for their unsparing support and trust in us.

Regards

Anil Aggarwal
Chairman & Managing Director

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