Marching ahead with Confidence...
|K. Ajith Kumar Rai |
|Founder and Chairman |
My dear Shareholder
I have pleasure in sharing with you the performance of Suprajit for theyear 2020-21. The enclosed reports and financial statements provide you with detailed andrelevant information.
Last year the year of Covid-19 was very challenging for allincluding your Company. Business was disrupted across the world due to lockdowns 1C partshortages shipment delays port congestions commodity price increases and other Covidrelated issues across various plants of ours and that of our customers. Kudos to TeamSuprajit we were able to manage multiple challenges throughout the year to deliver acommendable performance. Automotive industry contracted by 13.5% against which yourCompany on a consolidated basis grew by 5% with improved operational margins iam happy to present to you some of the highlights of the year gone-by:
1. After complete lockdown in Ql the sales for the group continuouslyimproved led by aftermarket across the group.
2. Post the very subdued Ql due to Covid Q2 Q3 and Q4 salessuccessively surpassed the previous historic record sales.
3. All divisions except Luxiite and Trifa performed much better thanbudgeted in the beginning of the year.
4. Capacity expansions both at Narsapura for cables and at Noida forbulbs have been progressing satisfactorily.
5. Suprajit Technology Centre in close interaction with customers isworking on a range of products for the future requirements of the Company. Some of theseproducts are in advanced stage of commercialisation.
6. Margin improvements were seen across the divisions of the grouplargely due to the various cost optimization projects improved operational efficienciesand product mix.
7. The overall debt was reduced to Rs.3277 million from Rs.3803million a year ago.
8. The Board of Directors reviewed the distribution policy for a higherdistribution to shareholders in the coming years starting with the first Buyback ofshares in the history of Suprajit.
Current year can probably be designated as Year of theVaccine' to fight the Covid pandemic. 90% of the Suprajit Team including temporaryand casual workers have at least had one dose of vaccination.
The second wave hit India badly with innumerable deaths and disruptionsduring the first quarter. The challenges we faced last year in terms of 1C shortagesshipment issues commodity price increases lockdowns etc. continue this year. This mayhave certain impact on group's financial performance.
While the WHO believes that the pandemic is yet to be under control Iam hopeful with the vaccination drives and continuous Covid precautions across our unitsand with the solid support of Team Suprajit rest of the current year will besatisfactory. I am also happy to inform that Suprajit Foundation has taken up multiple CSRprojects with a special focus to Covid to alleviate the hardships related to thisdreadful disease which is elaborated elsewhere in the report.
I While the pandemic rages. Team Suprajit continues to focus oncustomers optimal operations and improved efficiencies to outperform automotive industryas it has done in the past with an eye to grow profitably. Your Company is also activelypursuing inorganic opportunities and new product developments to further strengthenSuprajit in the years to come.
To this end I seek your continued support and good wishes.
|With warm personal regards. |
|Yours sincerely. |
|K. Ajith Kumar Rai |