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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 19, 16:00
161.00 0.70 (0.44%)
Volume
AVERAGE VOLUME
5-Day
1,839
10-Day
1,044
30-Day
1,072
41
  • Prev. Close

    160.30

  • Open Price

    164.50

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Feb 19, 15:47
161.55 0.35 (0.22%)
Volume
AVERAGE VOLUME
5-Day
5,336
10-Day
5,360
30-Day
7,292
2,724
  • Prev. Close

    161.20

  • Open Price

    162.20

  • Bid Price (Qty.)

    161.55 (9)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

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

Chairman's Speech

Dear Shareholders, I am delighted to inform you that your Company is celebrating 25 years of its incorporation. The Company was incorporated in 1986 and production started in 1988. We can all look back now with pride as we have come through various transitional curves, many of them very challenging, to reach a distinguished and reputed position in the Automotive Industry. It is at this point that I would like to thank each and every one of the stakeholders for having faith in the Management of the Company and for being there through the challenging journey of 25 years. Obviously, your Company is not going to rest on its laurels but will continually strive to deliver excellence in each sphere of the Business Process. The World Economy Since 2008 a lot of transformational changes have taken place in the Global Economy, however there is still a long way to go. The TRIAD markets are still going through the restructuring process and have not found a sustainable answer to many ills troubling their economies. In today''s world which is globally connected through trade and commerce, no market can remain unimpacted by the volatility in the major economies of the world. Although the developing countries, including the BRIC countries fared better than the rest, yet given the current situation, the entire global economy faces numerous challenges thrown up by inflationary pressures on commodities and food products. India''s growth dynamics were in contrast to the overall global scenario and India remained as one of the fastest growing economies registering growth of 8.5% during 2010-11. However, as we go into print, we hear of various downward revisions being made to India''s growth forecast for 2011-12. The RBI has revised the growth forecast down to 8% for 2011-12 but other indications from various independent agencies speak of a growth estimate below 8% also. The Indian Auto Industry The Indian two-wheeler industry has shown strong volume growth over the last two years, having grown by 25% in 2009-10 by manufacturing 10.52 million units and 27% in 2010-11 to reach 13.37 million units. Further, with this growth vehicle production is estimated to increase three fold from 2009 to 2020. The rise in demand is led by various underlying factors including India''s rising per capita income, increasing rural demand, growing urbanization, swelling replacement demand etc. However it is expected that rising interest rates, raw material & fuel prices will lower sales growth and the forecast for the automobile sector in the current financial year is 11 to 13% compared to the earlier projection of 12-15%. The lower growth forecasts are primarily for passenger vehicles and undoubtedly, any further increase in interest rates will adversely affect growth numbers for other segments also. Your Company is however hoping that the rural market, which is also a large and vibrant market, will sustain a reasonable growth for two wheelers. Future outlook Inflationary pressures, which are triggered by supply side factors, are now developing into a wider issue together with other factors like higher finance and input costs. Monsoon during this year is predicted to be below normal. A new industrial policy is on the cards and will hopefully address the ground level realities faced by manufacturing set ups in the industrial sector, so that the growth in the current year ( 2011-12) atleast matches the prior year. Uncertainty about the extent and pace of global recovery persists. Private spending in advanced economies continues to be constrained making it likely that economic stimuli in these economies will continue for a further period. Emerging Market Economies will also have almost the same position as in the previous year i.e growth in a restricted manner in selected industries. On the cost front, the availability of key raw materials such as steel and energy at reasonable prices, inflation, lower demand etc will remain as a cause of concern. The Indian automobile market and our outlook The Indian automobile market has made its mark in the world by giving quality products at competitive prices. The Automobile and Auto Component sectors go hand in hand., With the robust growth in the automobile sector, the auto component sector has also flourished. There has been consistent growth in the auto component market in recent years and it is estimated that the auto component market is worth US $ 30 billion in India. Significant investments are being made by Indian OEMs and auto component manufacturers in order to increase their capacities and fill the gap between the supply and demand. This has opened a new opportunity for your Company also to offer contemporary products to its export customers by upgrading its technology. As your Company now exports around 22% of its total sales, we have to focus on technological changes to keep abreast of various developments and be responsive to the market and specific customer requirements. Accordingly, we have recently acquired newer gear finishing technologies and we are further investing in world class and best-in class inspection/testing infrastructure for high quality products that can help in building up confidence of our esteemed customers in India and across the globe. This is because your Company believes that the long term outlook for the Auto Sector is still quite positive, especially in India. Company Strategy Your Company is now focusing on future technologies and sustainable manufacturing. In this connection, it is my pleasure to inform you that HGL has set up another state of the art plant, near the mother plant in Bhiwadi, Rajasthan which will soon be functional at its full capacity. This facility is an ''ECOFAC Plant'', and is meant to be a sustainable green manufacturing plant. The financial year 2010-2011 was an encouraging year in all aspects for the Company. The turnover of the company surpassed the Rs. 400 crore mark & touched Rs. 424.93 crores. The profit before tax was Rs.52.67 crores and the profit after tax stood at Rs. 35.04 crores. The Company has shared the gains among the shareholders of the Company by giving 1:1 Bonus Shares and 15% interim dividend. Your Board of Directors have further reviewed the cash position of the Company and have recommended a final dividend of 25% for your approval. You must be aware that HGL is already one of the largest independent transmission manufacturing companies in the country and we are constantly updating and achieving best standards of technology to keep pace with the global requirements and make Hi-Tech a global brand. I would like to place on record my sincere gratitude to the entire Hi-Tech family for their dedicated and relentless hard work in the year that has gone by to enable the Company to achieve the success that it has. Before I conclude, I would like to thank all our business partners for their continued support and belief in Hi- Tech''s endeavors, and for being an active part of Hi- Tech''s growth story. My sincere gratitude to my Board colleagues for their wise guidance from time to time. I wish that this journey will continue to be equally exciting and rewarding as we move ahead. Deep Kapuria Chairman