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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 26, 16:00
152.30 -7.30 (-4.57%)
Volume
AVERAGE VOLUME
5-Day
752
10-Day
1,311
30-Day
687
221
  • Prev. Close

    159.60

  • Open Price

    157.10

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Feb 27, 15:49
152.30 -0.85 (-0.56%)
Volume
AVERAGE VOLUME
5-Day
3,542
10-Day
4,439
30-Day
4,985
1,872
  • Prev. Close

    153.15

  • Open Price

    153.10

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

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

Chairman's Speech

Dear Shareholders, In this post silver-jubilee report, I have the pleasure to inform you that your company has done exceedingly well in many spheres during the Financial Year 2011-12, despite a very challenging environment. Firstly, it has both increased and diversified its production capacity through significant capital expenditure in both core and strategic areas to prepare forthe future. Secondly, it has proved its excellence in cutting edge innovation and technology to cater to both its domestic and international clients. Most importantly, it has renewed its commitment towards green manufacturing. Today, with a Green ''ECOFAC plant which has been awarded the Gold level of certification by the India Green Building Council, yourcompany is one of the few industrial enterprises which has became a world-class Indian brand with a green and sustainable strategy of growth, despite an increasing volatile economic and business environment. Global Scenario In this era of globalization, national economies depend more and more on international factors. The year under review started in a cautious manner due to unabated headwinds faced by the EU economies and an uncertain US economic recovery. Unfortunately, the uncertainty and volatility continued throughout the year, especially in the Euro zone, which continues even todate. In the auto industry, as in many others, global OEMs are consolidating with Tier 1 companies to remain competitive. As a result suppliers are facing volatility in demand and a major reconstruction of supply chains are in process. Your company is a major player in the market and is thus facing challenges as well. However, your company is keeping abreast of even minute changes in the industry, and is therefore better equipped to overcome the constraints and develop measures to restrict the impact. We are also at a geological crossroad, where our planet earth is getting warmer year after year, resulting in drastic changes in climatic conditions. This is evident even from the drought like conditions faced in most parts of our country this year. This has a direct effect on agricultural production as well as on our living conditions, which directly and indirectly shapes the economy. Today, Green Manufacturing is no more a fashionable idea, but a necessity for ensuring our own existence. Yourcompany being a responsible corporation, is constantly setting a higher benchmark for itself, and has become an example forthe industry. The Indian Macro Economic Scenario India is not isolated or insulated anymore and had to obviously feel the adverse impact of events happening in the world''s Financial, Commodity and Industrial markets. I had hinted in our last annual report about the negative impact of this on our GDP growth and each quarter of FY 2011-12 showed a steady decline, with the full year recording a growth of only 6.5 % vs 8.4 % in FY 2010-11. The situation now is unfortunately even more alarming with GDP growth estimates for FY 2012-13 ranging from just 5.5% to 6.5 %! The reasons are very many and widely discussed. It would therefore not serve any purpose to discuss all of them here in this report, except to say that what is required now from all concerned is not further analysis but positive and constructive action, with India''s long term future in mind! The Indian Auto Industry In this volatile situation, India Inc. has a tryst with destiny to prove that it can face and overcome global headwinds by focusing on its internal and domestic strengths and capitalizing on its inherent innovative skills. Yourcompany is also a soldier in this fight against factors slowing down growth and is working closely with stakeholders of the industry, economists, scientists, policy-makers and others, to steer the country back onto a strong growth path. The Two-wheeler industry continues to have a high base with domestic sales of more than 13.4 million units in FY 12 and a growth of 14 %. However, the demand is now seen more and more from rural and semi-urban areas. As the rural demand is strongly impacted by the vagaries of the monsoon, growth for even the two wheeler sector is not seen at double digit levels in FY 12-13, as it was in previous years. Growth in the Heavy Vehicles segment has in fact been negative in Q1 of FY 13 which is a clear indicator of slowing industrial growth across the nation. Future Outlook As mentioned earlier, action has to be the key word now and only concerted action by and between all stakeholders can avoid or atleast mitigate the ill effects of an impending slowdown. International regulatory standards for Green energy, products and processes should be made mandatory as stringent regulation and effective enforcement would be an opportunity for Indian industries also to build global brands. Despite various tough measures taken by the RBI, inflation has still not come down to its targeted levels and continues to be a source of concern for both the consumer and industry. The fiscal deficit is another matter of major concern and reports / estimates indicate that it could be as high as 5.9 % in FY 13. This means that the nations credit rating is at risk of being downgraded unless action is taken urgently to contain costs through reduction of subsidies and the restricting the oil import bill. Slowdown of FDI inflows is a direct result of these factors and the lack of positive action. The Indian Rupee has suffered as a result leading to even higher costs for imports of even essentials. The outlook therefore does not look promising atleast forthe short term i.e. FY 13, but there is no doubt about the fact that our nation has the ingenuity to fight back and restore its high growth trends if we all work as ''One Nation''. Company Strategy and Results Your company has made its mark as a leader of sustainable manufacturing. Our state-of-the-art Plant in Bhiwadi is operating to its capacity now while minimizing wastes and pollutants. This phenomenon has attracted several recognitions from the top assessing agencies, which are enumerated elsewhere in this Annual Report. Therefore, your company is today a respected name in the industry for its competitive and cutting edge products, which is a result of its farsighted strategy and policies. To summarise the financial results forthe year2011-2012,1 must mention that there was significant growth in all the key areas. The net turnover of the company grew by 17 % and touched Rs. 497.48 crores. As a result of this and our enhanced operating efficiencies, the profit before tax grew even higher to Rs 62.51 crores and the profit aftertax stood at Rs. 42.11 crores. The Company has shared the gains among the shareholders by declaring an interim dividend of 20%. Your Board of Directors have further reviewed the cash position of the Company and have recommended a final dividend of 25% for your approval, thus taking the total to 45% of share capital with a payout of Rs. 8.45 crores. In conclusion, I must mention that the Hi-Tech family shares the credit for this success story with all its stakeholders, i.e. our valued customers, oursupply chain partners, our employees, our bankers and the various government authorities who have supported us at every step. Our commitment to you, our valued shareholders, is to maintain our long term strategic growth path, despite any setbacks and hurdles that we may face in the short term due to the prevailing global economic scenario. I would like to take this opportunity again, on behalf of the Board of the company and its employees, to express my gratitude to you, for your continued support and encouragement year after year. Deep Kapuria Chairman