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Nitin Spinners

BSE: 532698|NSE: NITINSPIN|ISIN: INE229H01012|SECTOR: Textiles - Spinning - Cotton Blended
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Chairman's Speech (Nitin Spinners) Year : Mar '18

Dear Shareholders,

I take immense pleasure in presenting the 26th annual report to you. I once again extend my sincerest gratitude for investing your time and precious resources in our Company''s journey. With this Letter, I take the opportunity to share my thoughts and beliefs for the future.

Hard work and consistency in performance have led to stronger roots in the yarn and fabric market over the years. Now is the perfect time when we set out to explore newer frontiers in the finished fabric segment to grow beyond and become a prominent and reliable supplier to apparel manufacturers.

Our Performance in 2017-18

I am pleased to report impressive financial results for the year 2017-18. Despite a challenging period for the textile industry, the Company achieved the highest-ever revenue of Rs.1,145.25 Crores, growing by 22.70% over the previous year. We recorded an EBDITA and PAT of Rs. 157.18 Crores and Rs.52.39 Crores, respectively. Exports accounted for over 64.36% of the total revenue. The Board recommended a dividend of Rs.1.20 per equity share.

GST implementation

During the year, the Government implemented Goods and service tax (GST) to bring different tax regimes under one umbreLLa. It eLiminated multiple taxes at various manufacturing stages. However, in the transitional period, it has affected the textile trade adversely as there was resistance to the new regime across the textiLe vaLue chain.

Your company''s profitability was impacted due to disturbance in textiLe trade, reduction of duty drawbacks and time taken to pass on the GST impact in the market. Now with the stabilisation of markets, the negative impact has faded away completely, and the economy is moving progressiveLy towards a sustainabLe and steady growth.

Industrial Opportunities

Today, India has become an attractive destination for several industries across the world. Amongst those severaL industries, textiLe and appareL industry are growing at a fast pace. The industry is expected to reach US$ 250 Billion by 2018-19 owing to favourabLe demographics, rising demand, increasing disposabLe income and a switch in preference for branded products. The exports are aLso expected to witness a steady progress, LargeLy Led by favourabLe trade poLicies and superior quality products.

Our core business has acquired a satisfactory mass and we have achieved competitive advantages like upgraded infrastructure, raw material-sourcing proximity, efficiency in production, skilled labour, sufficient energy, better logistics and ease in port connectivity. Our flexible plants help fulfil the needs of our customers by providing customised products. Our consistent quality gives an added advantage across severaL geographies aLong with diversifying our presence.

Expanding into new Frontiers We are weLL-estabLished in grey cotton yarns and knitted fabrics. The Company is now sharply focused to explore new frontiers in the apparel sector with a long term prospective. The Indian apparel market is expected to witness at a CAGR of 10%, backed by rise in per capita income, increase in popuLation, rapid urbanisation, rise in standard of Living in ruraL areas and high penetration of onLine retaiLers. We pLan to set up an integrated textiles unit by investing Rs.675 Crores. The unit will produce a variety of processed fabric to fulfil all the requirement of apparel producers. Due to large scale, our project enjoys cost competitiveness, enabLing us for the entitLement of interest subsidy under Rajasthan Industrial Promotion Scheme. We enjoy well-connected project location. For ensuring good quality, state-of-the-art processing, dyeing and finishing machineries will be installed for the new project.

The Path Forward

Our strategic pLanning and decision-making orbits around the Company''s profitability. We boast of a diverse product portfolio, expansive presence and exceptional operational efficiencies - the key elements that we believe will drive future growth. We continue to capitaLise on present opportunities for enhancing shareholders'' value along with long term sustainability. I am excited and optimistic for the times ahead as we are on a sustainable growth path despite challenging times during the year.

We deeply believe in empowering communities around us and transforming their lives for a happy and radiant future. During the year 2017-18, we worked in the areas of women empowerment, education, healthcare and rural development as a part of our CSR activities.

On behalf of the Board of Directors and the senior leadership team, I hereby assure you that we have effective growth strategies in place. Our business is aligned to fulfilling consumers'' demand and well-positioned for a bright future. We will stay committed to buiLding the vaLue of your investments and trust in Nitin Spinners.

Best Wishes,

R. L. Nolkha

Chairman

Source : Dion Global Solutions Limited
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