Dear Shareholders,
It is my pleasure to address you at the onset of the new financial
year. This is the first fiscal for us as a listed Company and we are very excited for the
opportunities to come.
The past year witnessed its share of headwinds, in the form of
macro-economic volatility and geo-political tensions, which affected several industries.
However, resilience is a part of our DNA at the Pritika Group, which reflects in Pritika
Engineering's enduring performance for the year.
In the year ended 31st March 2023, on a standalone basis, we reported
Rs. 82.32 crores in revenue, a growth of 53.57% year-on-year. Our EBITDA and PAT grew to
Rs. 10.30 crores and Rs. 3.54 crores, respectively. Growth was mainly driven by higher
volumes (40% year-on-year), on the back of good demand from the tractor segment.
Pritika Engineering's listing, in December 2022, was a grand
success, with the IPO being oversubscribed 150 times. The successful IPO is a testament to
the strong fundamentals of our company and the confidence that investors have in our
growth potential. We raised Rs. 9.42 crores from the IPO, and these proceeds are being
used in product development and capacity expansion initiatives. This reflects a strong
order book from various OEMs, which in turn indicates an upward demand outlook in the
tractors and commercial vehicles sectors. In fact during some of the quarters in this
year, we saw relatively higher demand from commercial vehicles.
Your Company is particularly focused on research and development. In
line with this, we are using a new technique Lost Foam Technology to develop products,
which are not only higher quality but also cost effective. Moreover, we are consciously
focusing more on higher weight products, since they fetch better realizations and margins.
These two factors together should help us achieve better top line as well as profit
margins going forward.
Our product diversification initiatives should also enable us to reduce
our dependence on the tractor industry, by expanding more into commercial vehicles and
material handling applications. Consequently, we continue to expand our market share and
strengthen our relationships with existing customers.
Our commitment to sustainability and social responsibility has also
remained a key priority. We continue to work towards reducing our carbon footprint,
minimizing waste, and ensuring that our operations have a positive impact on the
communities we serve. We believe that responsible business practices are integral to our
long-term success and sustainability.
Looking ahead, we are optimistic about the next year and are
well-positioned to capitalize on opportunities in emerging technologies and expand our
footprint in international markets. We will also continue to build strategic partnerships
and focus on operational excellence to ensure that we remain competitive and profitable.
I would like to take this opportunity to thank our employees,
customers, suppliers, and all stakeholders for their support and trust in us. I am
confident that together we will continue to achieve new heights of success and growth.
Sincerely,
Raminder Singh Nibber Chairman