BSE LiveOct 01, 10:14
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NSE LiveOct 01, 10:19
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It is with great pleasure that I wish to inform that your Company has turned around -from the red to the black after a period of 5 years. Even as revenue from operations increased by 5% from Rs. 693.71 crore in 2016-17 to Rs. 731.29 crore in 2017-18, we reported a net profit of Rs. 16.36 crore in 2017-18 against a net loss of Rs. 39.75 crore in 2016-17. This is only due to the unwavering focus and the untiring efforts of the entire team with a single belief - We Can!
These two words became the operative words at Ind-Swift and continued to strengthen our belief that one day we would prove naysayers wrong. These words became the fuel that continue to kindle the beacon of hope in our mind through our darkest days. Now, we see a beautiful sunrise over the horizon which provides hope for an even brighter future going ahead.
I take this occasion to congratulate the entire team whose immense contribution has rekindled faith and hope in the minds of our customers and stakeholders that Ind-Swift attain its envisioned goal.
At Ind-Swift, we believe that there is no such word as failure, it is either success or learning. So our biggest learning is that running after fleeting opportunities was an incorrect strategy.
Let me explain. In 2010-11, banks were flush with funds and hence dolled out low-cost funds. We took the opportunity to leverage this opportunity to build our capacities and capabilities which even today I do not consider as a judgmental error.
But the error, ironically, was one of timing. We expected returns from our investments to happen faster. This got delayed owing to a larger than expected gestation in securing approvals. As a result, all our calculations went haywire. Our over leveraged position got the better of us. The rest is visible in our financial numbers.
We knew we had a basket of great products. We knew the capability of our equipment. We knew we had a passionate and dedicated team.
All we needed was to make our products acceptable globally. For this, we only worked on optimising our manufacturing costs, increasing man-machine productivity and improving product quality. We relentlessly pursued this mantra. We continued to motivate our team. We celebrated successes and failure alike.
We made sure that every rupee was used in reducing our debt burden. We just refused to give up because it is said that when you feel you have had enough and are about to quit, you should try push that little harder. For that is just the place and time that the tide will turn. And it did.
Sales volumes for our key products increased in regulated markets even as we widened our global footprint across new geographies. This helped in sweating our assets to the maximum. And while our topline increased at a healthy pace we started generating profits.
The question in the minds of most well wishers would be - is this a flash in the pan or will the Company be able to gain momentum as it progresses forward.
I am confident that we having made business profitable, we are now focused on making profitable business sustainable. For this we identified some areas that would assist us in our endeavour.
One, we will continue to make our products more cost effective as we move forward.
We have identified 4-5 products where we will increase their capacity through debottlenecking which enables us to remain competitive globally despite the clutter.
Two, we have a pipeline of products which are at various stages in their approval cycle. We plan to launch 2-3 products in the next 12-18 months. This will provide considerable impetus to our growth momentum over the coming years.
Three, we are working fervently on developing CRAMs as our flanking revenue vertical, which, over the next 2-3 yeas should make a significant contribution to the Company growth and profitability.
Message to shareholders
At Ind-Swift, the excitement is palpable. For a number of things are happening at the same time - some are course corrections while others are new initiatives in existing vertical. The bottomline then is ... we are seizing the day, to emerge better tomorrow; we are strengthening our core to make our business operations more flexible.
And as we are working to break out of the challenges that held us back earlier, opinion makers suggest that sectoral winds also herald promising times going forward.
N. R. Munjal.
Vice-Chairman and Managing Director