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Stovec Industries Ltd.

BSE: 504959 Sector: Industrials
NSE: N.A. ISIN Code: INE755D01015
BSE 00:00 | 31 Jan 2168.75 -33.30
(-1.51%)
OPEN

2270.00

HIGH

2270.00

LOW

2155.00

NSE 05:30 | 01 Jan Stovec Industries Ltd
OPEN 2270.00
PREVIOUS CLOSE 2202.05
VOLUME 659
52-Week high 2900.00
52-Week low 2100.05
P/E 20.53
Mkt Cap.(Rs cr) 453
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2270.00
CLOSE 2202.05
VOLUME 659
52-Week high 2900.00
52-Week low 2100.05
P/E 20.53
Mkt Cap.(Rs cr) 453
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Stovec Industries Ltd. (STOVECINDS) - Chairman Speech

Company chairman speech

STOVEC IS RESPONDING SWIFTLY TO CHANGES IN THE ECONOMIC ENVIRONMENT ENHANCING OURCORPORATE VALUE BY TAPPING GROWTH OPPORTUNITIES. WITH THE GROWING ECONOMY THE COMPANY ISWELL FOCUSED TOWARDS CREATING LONG-TERM VALUE FOR ALL STAKEHOLDERS INCLUDING CUSTOMERSEMPLOYEES SUPPLIERS LOCAL COMMUNITIES AND SHAREHOLDERS.

Dear Shareholders

With great pride and privilege I present to you all the 48th Annual Reportof Stovec Industries Limited for the fiscal year 2021.

The year 2021 was a year of recovery reopening and reflation. The first half of CY2021 was dominated by the second wave of the pandemic supply chain disruptions andrestricted operations. But the second half included significant support in the form ofinitiatives by the Governments and Central banks alongside other regulatory authorities.Even though the pandemic's paralysing effect lasted for about six months the first didmake us stronger and smarter in managing our lives and business operations. Thereon theoverall Global economic recovery recorded the fastest rate of progress post-recession.However the rising geo-political tensions are contributing to inflation and negativelyimpacting further growth of the economy.

The Indian economy showed a robust growth during the year. In the first quarter of FY2021 it grew by 20.1% supported by growing consumer demand and a lower base effect.However second wave created a havoc resulting in higher death rate. A faster vaccinationdrive alongside partial lockdowns helped the people and the economy to remainprogressive. Loosening monetary policies and lower interest rates helped the economy inmaintaining a steady pace of growth. Rising crude oil prices and its cascading effect onhigher inflation remained a growing concern increasing the fiscal deficit. However thecontinued consumer confidence resulted in higher GST collections during the year.

End-user Industry

The Textile Industry has showcased a strong recovery post pandemic. According to theMinistry of Textiles the Indian textile sector grew by 41% in the first three quarters ofFY 2022 as compared to the corresponding quarters of FY 2021. The Textile Industrywitnesses a trade surplus at all times - with exports outnumbering its imports. In FY2021 the textile exports slowed down disrupting the supply chain and demand.

With several Government measures and prompted optimism the sector is now expected torise to $300 Bn by 2025-26 showcasing a growth of 300% in the next two years.

For the Technical Textiles segment there has been a significant turnaround. In termsof value technical textiles imports were Rs 1058 crore higher than exports in FY 2020while exports were Rs 2998 crore higher than imports in FY 2021.

Stellar Performance

As the economy and industry showcased a robust growth the Company has also managed toclock better financial metrics. We attribute these results to our strong business modeland the tremendous hard work of our employees. They helped us weather this crisis anddrive through with a swift performance. Despite the hardhitting second wave of thepandemic higher inflation and supply chain disruption we achieved high revenues EBITDAlevels and even better margins during the year. We accredit this to improving of ouroperating leverage and increase in volume offtake coupled with higher price realisations.

Let us consider some of the highlights of our Financial Performance in 2021:-

? Revenue from Operations stood at Rs 2333.61 Mn in FY 2021 rising from Rs 1510.23Mn in the FY 2020 - recording a growth of 54.52%

? EBIDTA for FY 2021 stood at Rs 463.07 Mn 158.22% higher growth than the previousyear

? Net Profit was recorded at Rs 296.41 Mn in FY 2021 witnessing an increase of 120.17%over the previous year

? Return on Capital Employed was clocked in at 25.64% witnessing a 159.18% increaseover the previous year

Outlook

The Company has set itself on a brighter path and is well-prepared to grab the growingopportunities in near future. Anticipating continued demand from retailers and consumersthe Company remains well-poised to accomplish the next phase of growth. Moving ahead withprudent strategies and resources its goal is to continue delivering sustainable valuecontributing to the larger vision of development. The key focus remains towards improvingand expanding the value-added products' share consistently.

Conclusion

The Group's management teams and employees stood out as Stovec's key strengths oncemore. The relationships with our external stakeholders - including customersshareholders suppliers and industry regulators - are critical to the sustainability ofthe business. Thereby I recognise their efforts and thank them for their continuedsupport and association with Stovec.

I extend my heartfelt gratitude to all our employees for their commitment and hard workduring the year. Your ongoing efforts are appreciated and highly recognised infacilitating the Company's growth from strength to strength as a leading player in thetextile and graphic printing market.

Best Wishes

K. M. Thanawalla

Chairman

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