Dear Friends,
This year, the company has posted a stable financial performance
consistent with last year's level. It may appear to be plateauing performance as compared
to last year's strong growth. Being an election year, there were delays in budgetary
allocations, deferring some of the infrastructure projects impacting the industry. Now,
with the Government in place, there is every indication of continuity and maintaining the
momentum of infrastructure development in the country. This would push the growth
trajectory for the company.
The consolidated results also show a similar trend, as the company
contributes more than 90% of the consolidated results. Based on certain developments,
appropriate adjustments have been made to the financial statements. It is important to
reiterate that these adjustments would not have any impact on the cashflows and the
overall financial strength of the company or the subsidiaries.
As the company has been consistently performing over the last few
years, high-capacity utilisation for all its units has resulted in boosting the company's
reserves and providing surplus cashflows. The company has embarked on certain
augmentations in capacity, introducing new products and plans to create more value-added
production lines which will help the company benefit from the new opportunities made
available by the robust growth in the Indian economy.
The domestic / export order book is well balanced and despite some
concerns on the international supply chain, the company is in a strong position to deliver
consistent results.
The Government has entered its third consecutive term, and it seems to
be well-settled and is once again focusing on the robust growth of the Indian economy.
This would provide momentum to all the initiatives in the infrastructure space,
particularly the water, oil & gas and other industrial sectors which are important for
the company.
The US elections have given the US a new Government. The new
administration has announced a series of changes to their trade policies which may impact
the world order. The full impact of all these measures is yet to be realised but India
seems to be well placed in the geo-political scenario where it may benefit from receiving
foreign direct investment in important sectors like semiconductors and electronic goods.
The Russia - Ukraine conflict and the disturbance in the Middle East continue to be a
concern for the global supply chain and may impact certain trade routes.
The recent flare-up of tension between India and Pakistan is another
area where we keep a close watch, but the Indian economy is resilient and in our opinion,
this would not impact the economy significantly.
Amid the global concerns we are optimistic about our company's robust
performance in the years to come. We continue to add new value-added products to our
portfolio. The company has also made inroads to enter new sectors like defence and atomic
power with its products to support the "Atmanirbhar Bharat" initiative of the
Government of India.
The company is focused on sustainability, innovation, automation,
systems & processes, and quality products to stay in step with the current times of
growing size and complexity. These functions are getting adequate attention to prepare the
company for future growth.
The company is committed to consolidating and maintaining its
leadership position. With a stable capital structure, the company continues to explore and
examine the possibility of future growth and development to enhance the shareholders'
value. Partnerships with banks and financial institutions are of paramount importance and
we continue to maintain a healthy relationship with them.
Svayam, our CSR initiative, continues to work with government
organisations, NGOs and multilateral agencies to create awareness about accessibility in
public places for the elderly, differently abled, and people with typical conditions in
India and abroad. This initiative has entered its 25th year and has added accolades along
the way.
Human resources are vital assets for a company, and adequate focus is
being given to create a suitable work environment.
The company acknowledges and appreciates the support received from
Government authorities at the Centre, State and local levels, other stakeholders, clients
and vendors who have played a significant role in the company's good performance. With
their continued support, the company is assured of its future.
We thank the credit rating agencies for putting their faith in us and
continuing with our ratings in "AA" category for long-term indebtedness.
Last but not least, the investors and shareholders need special mention
and appreciation for staying strong with the company while we worked at creating the
fundamental strength and intrinsic value, which is reflected in the current market
capitalisation, which we believe will continue to grow.
Jai Hind!
Prithavi Raj Jindal
Chairperson (Non-Executive)