The global economy is on a rebound. The International Monetary Fund (IMF) estimates indicate that global real GDP grew 3.8% in 2017. This is the highest growth pace over the last six years. This impetus from the supportive monetary policy was further buoyed by the revival of investment spending in advanced economies. The expansionary fiscal and monetary policies in the US led to improved growth prospects. The US economy grew at 2.3% in 2017 as against 1.5% in 2016. Growth accelerated in Europe and Asia too. For the current and the next year, strong growth at 3.9% is projected. This positive outlook is somewhat clouded . Increased trade protectionism, rising international crude oil prices, geo-political risks and the uncertainty about normalization of monetary policies in advanced economies from highly accommodative conditions in the past, are some of the factors that dim the outlook.
India’s economy is emerging strongly from the transitory effects of demonetization and implementation of Goods and Services Tax (GST). Although India’s GDP growth slowed from 7.1% in FY17 to 6.7% in FY18, the economy recorded a seven-quarter high GDP growth of 7.7% in the exit quarter of FY18. This reflects momentum. India’s macroeconomic indicators remain healthy. The fiscal deficit has been cut to 3.5% of GDP. India’s foreign exchange reserves at March end stood at a comfortable level of $424 Billion.
Investors seem to be positive on India’s economic prospects. The Foreign Direct Investment (FDI) flows continue to be encouraging. India’s global ranking on the ease of doing business notched up to 100 from 142 in barely four years, while that on global competitiveness index has climbed from 71st in FY 15 to 39th in FY 17. The prevailing sense of optimism accentuates India’s continuing economic growth in future as well. It is attributable to the country’s solid fundamentals, such as deleveraging by corporates, resulting in much stronger balance sheets, better capacity utilization with consumption demand becoming stronger, and insolvency and bankruptcy process weeding out non-performing assets, among others.
The Government’s unwavering push for infrastructure projects, metros, affordable housing, urbanization, smart cities and digitalization are excellent stimulators for the economy’s growth in the medium term. At the same time, we cannot ignore near-term challenges. The bucket of concerns consist of rising oil prices, hardening inflation, firming bond yields and widening current account deficit. The ongoing global trade frictions, particularly between the US and China, are worrisome and can have a spillover negative effect on countries like India. So the terrain ahead could be a tad bumpy depending on the economic and geopolitical environment.
Performance of your Company
The year ended March 2018 was a good year for your company. The Company during the year recorded a turnover of Rs.83.82 crores in 2017-18 as against Rs.70.42 crores in 2016-17 with a net profit after tax at Rs.513.01 laks as against Rs.374.01 laks. We remain confident that your company will also perform well during the current year too.
New developments as well as modifications in existing models have been made to suit Chinese and Russian market where ITL Machines were exhibited in prestigious International machine Tool Shows. Similarly, new low cost automation have been added to the machines with Robotics for Indian and Overseas Customers. Development in Pipe and Tube Manufacturing machine division will result entry in the Exports market too. New “Industry 4.0” standard will be necessary in future Machine Tools hence necessary developmental activities have been started.
The domestic demand for Company’s products is expected to remain better. Apart from Designing and Manufacturing activities, Company’s Trading divisions are also expected to perform well.
We remain committed to improve the Shareholders value towards this end, we are continuously looking for the opportunities and are upgrading the infrastructure befitting to the same.
To Our Teams
The support of our Shareholders, Business Associates, Valued Customers, Banks and Financial Institutions has always been a source of strength to us and we thank all of them wholeheartedly for remaining the integral part of our growth story. I also wish to thank all the employees for their devoted efforts in bringing up the company to the present level.
Rajendra Singh Jain