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The Hi-Tech Gears Ltd.

BSE: 522073 | NSE: HITECHGEAR |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE127B01011 | SECTOR: Auto Ancillaries

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BSE Live

Feb 28, 12:45
150.30 -2.00 (-1.31%)
Volume
AVERAGE VOLUME
5-Day
741
10-Day
1,290
30-Day
694
50
  • Prev. Close

    152.30

  • Open Price

    150.30

  • Bid Price (Qty.)

    147.30 (49)

  • Offer Price (Qty.)

    153.00 (100)

NSE Live

Feb 28, 12:45
148.50 -3.80 (-2.50%)
Volume
AVERAGE VOLUME
5-Day
3,371
10-Day
4,105
30-Day
4,841
3,141
  • Prev. Close

    152.30

  • Open Price

    145.00

  • Bid Price (Qty.)

    148.50 (33)

  • Offer Price (Qty.)

    152.90 (16)

Annual Report

For Year :
2018 2016 2015 2014 2013 2012 2011 2010 2009

Chairman's Speech

When I wrote to you last year the world was in the middle of worst global economic and financial crisis. Since then the global economic scenario improved during the year 2009-10. The triad economies remained stressed. The Chinese and Indian economies, led the world economic recov- ery, grew by 11.9% and 7.2 % respectively. The year gone by, exhibited significant stabiliza- tion in the global economy and automobile sector as well, despite the global financial crisis. Although the financial markets were volatile, mainly due to uncertainty of the shape of the global recovery, the risks in the global financial markets subsided for the most of the 2009-10. The new structure and the related government-led financial packages, along with market incentives helped the industry to survive this crisis. In passenger vehicle including car segment, India witnessed growth of 25.57% by sale of 1,949,776 units in the year under review as compared to 1,552,703 units last year in the domestic market. Similarly, Commercial vehicles sales in the year gone by was 531,395 units, as compared to 426,819 last year, registered a growth rate of 38.31% due to faster execution of major infrastructure projects in the country. The Two-wheeler industry, in India, has also achieved healthy sales of 10,511,415 units during the 2009-2010 as compared to 8,441,793 units in 2008-09 registering a growth of 24.51%. Low excise duties, low interest rates and relatively higher disposable incomes pushed up the demand of the two wheelers. The export of commercial vehicles registered a moderate growth rate of 5.59% by sale of 45,007 units in the year under review as compare to 42,625 last year. However, two wheeler exports has exceptionally done well and achieved the growth rate of 13.54% by sale of 1,140,184 units in 2009-2010 as compared to 1,004,174 in 2008-09. The export of cars this year was at 441,710 units as compared to 331,535 last year, registered a healthy growth of 33.23%. Looking ahead, we see favorable prospects for the Indian economy. Our strong domestic consump- tion and investment drivers will continue to support healthy rates of growth. The stimulus package of the government and the implementa- tion of the Sixth Pay Commission, which will increase the purchasing power of public sector employee, should boost the demand. We believe the economic recovery, some signs of which are already visible, will gather momentum in the coming months and in the due course see India returning to a high growth trajectory. The Indian economy has been able to recover faster than its peers due to the combined and timely efforts of the Government of India and Reserve Bank of India. The Indian economy successfully emerged out of the slow down and has posted a GDP growth of 7.2% in 2009-10 with a future projection of 8.5% growth in 2010-11. Future Outlook With a normal monsoon during the year, the Indian economy is expected to return towards the higher growth path again with expected GDP growth of 8.5% and moderate food inflation which has been a cause of worry during the previ- ous year. The policies of Government of India are encourag- ing manufacturing sector as in India 15% of the GDP is contributed by Automobile Industry whereas in China automobile industry contributes 42% of GDP. Hence going forward, the govern- ment expects that by 2020 contribution of Auto- mobile Industry to the India GDP should be up to 20%. Various studies forecast a healthy future of the domestic automobile sector. They depict substan- tial improvement in the automobile products and markets in the coming years. Company Performance The financial year 2009-2010 has ended on a positive note. Your Company surpassed the previ- ous year turnover and has achieved a net turnover of Rs. 322.69 crores (Previous year 294.77 crores), recording an increase of 9.47%. The Net Profit (After tax) of the Company has increased from Rs. 7.69 cr. to Rs.17.85 crores, recording an increase of 132.02 % as compared to the previous year. The year under review saw increase in demand of the two wheelers and exports also picked up especially in the last two months of the last finan- cial year. The availability of the credit and improvement in the world economy has resulted in rise in the demand of the automobiles world- wide. During the year under review your Company has registered marginal growth in the exports of its components, recording a total export turnover of Rs. 48.89 crores as compared to Rs. 48.81 crores in the previous year. In keeping with our philosophy of sharing the gains with our stakeholders, I am pleased to report that the Directors have made recommen- dation for final dividend to 45% i.e. Rs. 4.50 per equity share as compared to 15% paid last year i.e. Rs. 1.50 per equity share. We at Hi-Tech Gears have demonstrated a passion to succeed and it is now reflected in our position. This year your company has received two prestig- ious awards namely Category-A TPM excellence award on January 28, 2010 by the JIPM (Japan Institute of Plant Management) and Shingo Silver medallion for the operational excellence. Shingo award recognized the highest level of operational excellence in the field of lean manufacturing. This award is one of the most prestigious recognition in the Auto Industry worldwide. We are in the process of expanding our capacities and plant-Ill is under execution. It is expected that commercial production would start by end of this year. This plant would cater to the new customers of the company both domestic as well overseas also. Before I conclude, I would like to thank all our business partners, associates and employees for their continuing belief and faith in Hi-Techs principles, philosophy and endeavors, and being a part of Hi-Techs growth story. I would like to assure you all that the journey will continue to be equally exciting and rewarding as we move ahead. Deep Kapuria Chairman & Managing Director