I am happy to report a year of strong performance .Our remains on nurturing the long term growth potential of the Company while maximizing the available opportunities and minimizing the risk. Our revenue performance has affirmed our strategic product mix choices and now our focus is on acceleration of the growth patterns.
Despite differential pricing policy adopted by the primary producers the Company was able to achieve higher sales both in terms of value & quantity mainly due to increased Prices by Primary producers. Despite slow down demand for Electrical / Engineering products enabled to accelerate the production and Turn Over. It is this differential pricing policy and upward variation in power & fuel cost has affected margin before Interest and depreciation. In February 2019 the Bankers have issued Notice under DSARFASEA Act 2002 for recovery of over due amount. The Company has submitted appropriate reply and objections.
OUTLOOK FOR ALUMINIUM INDUSTRIES
Aluminium segment includes primary aluminium aluminium extrusions aluminium rolled products alumina chemicals Demand for aluminium is expected to pick up as the scenario improves for user industries like power infrastructure and transportation Production of aluminium stood at 2.8 million metric tonnes during FY18.Total imports of aluminium and aluminium products in India during FY18 stood at US$ 3.55 billion whereas in FY19 it reached US$ 2.15 billion Consumption of aluminium in India estimated at 3.4 million tonnes in FY18 is expected to reach to 5.3 million tonnes by 2020 Aluminium production is estimated to reach 3.33 million tonnes per annum in FY20.
National Aluminium Company (NALCO) a central government-owned entity is set to join the club of million-tonne producers in the metal segment by 2020. NALCO has readied an about US$ 3.72 billion investments for increasing its alumina aluminium and power production capacities.
In April 2018 NALCO readied about US$ 3.72 billion investments for increasing its alumina aluminium and power production capacities the other update fine Demand of aluminium in India was expected to grow at 18-19 per cent per annum and this was driven by growth in sectors like electricity transport building construction and packaging Consumption of aluminium in India estimated at 3.4 million tonnes in FY18 is expected to reach to 5.3 million tonnes by 2020.
India is among the lowest cost producers of aluminum in the world owing to easy availability of raw materials and comparatively low labour costs. The growing demand for aluminum in the last decade driven by India's underlying growth story has resulted in expansion of smelting capacities of the major domestic players.
With the addition of new aluminum capacities India aims at not only satisfying domestic demand but also playing a major role in the global aluminum market.
Prices of aluminum have shown recovery over the past financial year. One of the main reasons for this is due to measures taken up by the Chinese economy as well as renewed sentiments toward the demand for aluminum.
Our Directors express their sincere appreciation to the dedication of the officers employees and workers of the Company at all level to show the resilience in the performance of the Company.
Your director also lace on record their appreciation for the support and cooperation extend to the Company by the bankers customers vendors and shareholders.
|For and on behalf of the board of Directors|
|For Sudal Industries limited|
|Sudarshan S Chokhani|
|Place : Mumbai||Managing Director|
|Date : 30th May 2019||DIN 00243355|