INDIA MOTOR PARTS AND ACCESSORIES LIMITED
ANNUAL REPORT 2010-2011
CHAIRMAN'S REPORT
Ladies and Gentlemen,
It gives me great pleasure to welcome you all to the 57th Annual General
Meeting of your Company.
The audited accounts of the Company for the year ended 31st March 2011 and
the Directors' Report have already been circulated to you and with your
permission, I shall take them as read.
During the year under review, the Indian economy performed well and
registered a strong GDP growth of 8.50%. The Auto Industry had a
particularly good year, with the Medium & Heavy Commercial Vehicles growing
at 32%. Light Commercial Vehicles grew by 23% and Multi Utility vehicles by
29%.
However, in the current fiscal year 2011-12, the prospects for the
automobile industry are not as bright as in the previous year. In the five
months ending August 2011, Medium and Heavy Commercial Vehicles registered
a growth of only 7.07%, whereas Passenger cars recorded a negative growth
of -1.26%. These were low compared to last year. Sales in Light commercial
vehicles have maintained their growth rate.
WORKING RESULTS
Your Company's sales turnover for the year ending March 2011 grew by 19.52%
to Rs.427.99 crores from Rs.358.08 crores in the previous year. Profit
before tax grew by 13.87% to Rs.41.54 crores from Rs.36.48 crores in the
previous year. Profit after tax went up by 15% to Rs.28.52 crores from
Rs.24.80 crores in the previous year.
I am happy to inform you that your company has maintained a Compounded
Annual Growth rate of 15.11% during the last 4 years on the sales front.
Your company controlled costs to increase profitability.
DIVIDEND
Your Directors in May 2011 paid an interim dividend of 170% i.e. Rs.17/-
per equity share of Rs.10/- each for the year 2010-11. The dividend,
together with dividend tax of Rs.114.72 lakhs absorbs a sum of Rs.821.89
lakhs. The Board of Directors propose to treat the said interim dividend as
the total dividend for the year.
PROSPECTS
The current fiscal year for your company has commenced on a positive note
with a good increase in Turnover. Sales in the first five months of 2011-12
grew by 21% to Rs.206 crores from Rs.170 crores.
The disturbance in the global financial markets and the associated
sentiment has not so far affected our industry. With the increasing vehicle
Park in India, we hope to achieve a satisfactory growth rate for the rest
of this fiscal year.
ACKNOWLEDGEMENTS
On behalf of the Board of Directors and on my own behalf, I wish to thank
all our suppliers, dealers and bankers for their continued support and co-
operation. I also wish to place on record my sincere appreciation for the
excellent contribution of all the staff and executives of the Company,
which enabled your company to register a good performance during the year
under review.
SRI S. NARAYANAN
CHAIRMAN
September, 29, 2011
Source: Press Meeting.