It gives me great pleasure to welcome you all in Shree Ganesh Forgings
Ltd and I thankfully appreciate an overwhelming response from you in
our recent IPO. Now let me declare the results for the financial year
We have developed a strong global customers base and hope to be the
India's largest Stainless Steel Flange manufacturer exporter in the
- Total revenue increased by 31% to Rs. 5735.02 lacs in 2004-2005.
- Operating profit (PBDIT) increased by 60% to Rs. 634.68 lacs.
- Profit after Tax (PAT) grew by 131% to Rs.281.00 lacs in 2004-2005.
- Earnings per share grew by Rs. 3.75 in 2004-2005.
You would be glad to know that this year your company had yielded
excellent results in each and every aspect as compared to the previous
year. The revenues have enhanced by 31 %, where as the profit after tax
(PAT) had arrived at Rs. 2,81,00,207/ - mark, thus registering a unique
growth of 131%. The export revenue has mounted by 31%. The return of
capital employed as well as the return on net worth has shown a good
I take this opportunity to share with you all some exciting happenings
in Shree Ganesh Forgings Ltd., which has been able to achieve its
target much within the stipulated time-frame and is on the verge of
extending its limits. Some of the key reasons are mentioned below:
Over the last few years your Company had concentrated heavily on export
side and has worked out categorically on factors like
- Minimizing of risks;
- Analyzing the strategy of the competitors within the industry;
- Market research;
- Customer tastes, likes, dislikes and the current trend etc.
With a huge increase in demand the company has decided to go for an
IPO, which had an overwhelming response in the form of 50,339
applications & 24.45 times over subscription.
I would once again thank all the existing and new shareholders for such
a marvelous response. The company has decided to go in for expansion.
Let us have a glance on it:
The company is going for an expansion of 32.50 crores.
With this increase the company's installed capacity will increase from
11,000 MT to 22880 Mt. This additional capacity in machining will help
to increase the company's profitability and efficiency drastically. The
additional capacity in the forgings hammer will definitely increase the
efficiency and manufacturing of certain sizes of forging press, which
will leverage our production and give good efficiency.
The increased capacities alongwith improved efficiencies will help us
to grow to new heights and be able to cater to the boom in both the
Oil, Gas, Petroleum Industries, as well as, Automobiles Industries.
I do not hesitate in announcing that our management team and all of you
are extremely optimistic about the future performance of your Company,
Looking at our orders received and the orders to come in future Shree
Ganesh Forgings Ltd will continue to grow in a steady manner.
Mumbai (Deepak B. Sekhri)
28th July 2005 Chairman Cum Managing Director