I welcome you to the 24th Annual General Meeting of the Company. Your
continued support gives us the enthusiasm, confidence and motivation to
strive for betterment. With success comes responsibility, so we take
care to reinvest in protecting and developing the communities within
which we operate.
On the operational front, the Company has made significant progress in
the last year. The Company, on standalone basis, has recorded net
revenue of Rs.107243.18 Lacs, as compared to Rs.94421.79 Lacs in the
previous year reflecting a growth of 13.58%. The profit before
exceptional item and tax is Rs.3165.62 Lacs as against Rs. 2356.46 Lacs
in the previous year reflecting an increase in Profit by Rs. 809.16
Lacs. An increase of 34.34%. The Net Profit after Ta x is Rs.1406.01
Lacs as against Rs. 1654.92 Lacs in the previous year reflecting a
decrease of profit by Rs. 248.91Lacs, a decrease of 15.04%.The Earning
per Share (EPS) before exceptional stood at Rs. 11.90 per share.
Key development subsequent to financial year ending:
The Company''s seamless steel and pipe division unit at Umbergaon,
Gujarat, has been transferred to Tubacex Prakash India Private Limited
on 25th July, 2015, pursuant to the joint venture Agreement between the
Company and Tubacex S.A. Spain. The Company however retains 32.47%
shareholding in the said Tubacex Prakash India Private Limited post
transfer of the Seamless division. The Company will continue the
manufacturing of welded tubes and pipes and also the trading in S. S.
Products. The sale proceeds has helped the Company reducing its debts
At a time when market conditions have been challenging, not just in
India but globally, we have maintained our output and braved headwinds
like cheap imports, slack demand, among others to give a sector leading
performance. Analysts also expect India''s steel consumption to rise.
To meet the challanges of future business scenario, your Company has
taken the decision to hive off its seamless division for which we not
only got reasonably good valuation but also got the opportunity to be
the partner of worlds largest SS Tubes manufacturing company Tubacex
S.A. of Spain. We hope that our company will be benefitted immensely
with this tie up.
I would like to express my sincere appreciation to our shareholders for
the support and confidence reposed in us, and all other stakeholders
and Government agencies, our Bankers for the continuing commitment and
support in your Company. We look forward for their continued
association with the Company.
Prakash C. Kanugo
(Chairman & Managing Director)