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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

BSE Live

Jul 27, 16:00
332.95 -5.85 (-1.73%)
Volume
AVERAGE VOLUME
5-Day
8,043
10-Day
6,377
30-Day
9,695
7,732
  • Prev. Close

    338.80

  • Open Price

    341.05

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Jul 27, 15:58
331.35 -6.90 (-2.04%)
Volume
AVERAGE VOLUME
5-Day
35,658
10-Day
42,795
30-Day
61,352
28,212
  • Prev. Close

    338.25

  • Open Price

    342.75

  • Bid Price (Qty.)

    331.35 (160)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

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

Chairman's Speech

Dear Shareholders, As I write my message to you this year, the economic environment seems to be changing almost on a daily basis and the emerging markets seem to be bearing the brunt of the volatility. Your company has however tried to maintain a fine balance by lowering financial risks in such times of economic turmoil, while maintaining the hi-tech quality products, which has always been the hallmarkof your company. Global and Domestic Scenario The year under review has been difficult not only for private enterprises but also for Nations at large in terms of controlling their sovereign debt and fiscal deficits. The latter also contributed to the very low growth of markets and opportunities. If the USA is showing slight signs of improvement, Europe is yet to recover. Together these two developed blocks, which account for the majority of Indian export, have impacted India adversely. The exports for the year 2012-2013 have dipped by US $ 6Bn from the previous year and it stood at US $ 301 Bn due to decline in global export demand. On the domestic front, the National GDP growth reached a decadal low of 5%. Even though the Government took certain reform measures in the last one year, a large number of reforms and key legislation are still awaited and these are now badly required to revive industry and improve the nation''s outlook and sentiment. Strong measures to curtail the Country''s Current Account Deficit are also urgently required as it is weakening the INR significantly and the worst may be yet to come. The adverse impact of the weakening Rupee on inflation is another serious concern. The Indian Auto Industry The Auto Industry, one of India''s fastest growing sectors is now facing negative growth, as in Q1 of FY 13-14 due to the current economic conditions. The overall sales growth of the Indian automobile sector was just 1.2% in 2012-13. The Two-wheeler industry sales grew at a meager 1.9 % and the commercial vehicles segment registered a sales decline of 27 % in 2012-13. As the sales of commercial vehicles is a clear indicator of industrial and commercial activity, the significant decline is a matter of serious concern. The Indian Automobile Market and Our Future Outlook India is now waiting for a second curve of growth. However, the enablers of growth in the competitive market are varied and dependant on different stakeholders. In addition to the global slowdown, India is also facing inflationary pressures as mentioned earlier and a large number of reforms are now overdue. The GDP growth and private spending in the conventional export markets for India are minimal. Over and above that some countries are adopting ''protectionist policies'', to safeguard theirdomestic interest. The Indian automobile industry is therefore undergoing a very challenging phase due to the abovementioned reasons. This is bound to affect the auto-component industry also. The industry is contributing substantially to Indian GDP and needs to be nurtured and supported to return to its earlier growth levels. The Industry exports to more than 100 countries. Exports have been growing at 16% per annum over the past 5 years and currently account for 20% of the industry. Exports to Europe and North America make up 60% of total exports, with Asia accounting for 28%. In spite of declining exports your company stands out as a global manufacturer, and hopes to regain its share as soon as the winds of change hit our traditional markets while we are also making significant efforts to diversify our customer base. Company Strategy The financial year 2012-13 has ended on a challenging note. The company suffered a decline in its turnover and profits. The turnover was Rs. 373.38 crores compared to Rs. 497.48 crores in the previous year. The company''s export turnover suffered a serious decline of 52.92% during the year. As a result of the decline in sales turnover, the profit before tax was down to Rs. 23.64 crores and profit after tax stood at Rs. 16.22 crores. Your company has taken and is taking various significant steps to step up its customer base and increase sales but this process is likely to take a year or two in view of the long qualification and approval process in the auto sector. All efforts are being made to revive export sales also and large orders are expected to be signed during FY 13-14 for shipment in subsequent years. All possible steps are also being taken within the organization to maintain and further improve operating standards and achieve excellence at every step. As part of our strategy, the company continues to give special attention to maintaining a strong Balance Sheet and healthy Balance Sheet ratios, as you will see in the attached audited statements. We at Hi-Tech Gears have always followed the philosophy of sharing the gains with our shareholders and we continue to do this even in these difficult times. A final dividend of Rs. 1.50 per equity share is recommended by the Board of Directors, in addition to the interim dividend of Rs. 1.00 per equity shares for the year 2012-13. Today HGL is a highly respected name in the industry for its competitive and cutting-edge products. Hi-Tech family shares the credit of this success story with all its employees for their relentless hard workand contribution to make HGL a company with global reach and a strong foundation. Before I conclude, I would like to thank all our business partners for their continued support and belief in Hi-Tech''s endevours, and for being an active part of Hi-Tech''s life. I offer my sincere gratitude to my board colleagues for their wise guidance from time to time. I am sure that we will pass through these challenging times with many learnings and the journey will be more rewarding as we move ahead. Deep Kapuria Chairman