Moneycontrol
Get App
SENSEX NIFTY
you are here:

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

Success
Alert
Please select a Day.
Info

BSE Live

Feb 20, 16:00
162.70 0.35 (0.22%)
Volume
AVERAGE VOLUME
5-Day
1,693
10-Day
1,011
30-Day
972
275
  • Prev. Close

    162.35

  • Open Price

    164.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Feb 20, 15:55
162.75 1.20 (0.74%)
Volume
AVERAGE VOLUME
5-Day
4,838
10-Day
4,111
30-Day
7,032
5,917
  • Prev. Close

    161.55

  • Open Price

    160.50

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    162.75 (80)

Annual Report

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

Chairman's Speech

Dear Shareholders, The financial year 2013-14 was eventful and challenging in terms of both the global and domestic scenarios. Interestingly in the global scenario, after experiencing extremely difficult situations in the past, the year 2013-14 exhibited some stability in many large and emerging economies. In the domestic scenario however, the hopes of growth were belied and the year again recorded a low GDP growth of just 4.7 %. This was the second year running with a growth below the 5 % level. Global and Domestic Economic Affairs In today''s world which is globally connected through trade and commerce, no market or economy can remain unaffected by the volatility across economic regions. The global economy, including both the developed and emerging economies, are yet to come to terms with the volatility that is reigning over market conditions from many years. VUCA has today become almost an accepted factor and stability or good growth is viewed with some skepticism or doubt! The reasons for the slow growth rate were similar to the previous years at both the international and domestic levels. 2013 witnessed developed economies gaining some traction, whereas many emerging economies actually lost ground. The mild global recovery was still led by the fiscal stimulus (QE3) in the USA based on the low interest rates and reassurances by the central banks of major economies. Though, the growth of the global economy in 2013 was almost flat i.e. 3.0% as against 3.1% in 2012, but it experienced a cautious recovery in the second half of the year. This sustained growth was led primarily by the developed world with the US witnessing a stronger than expected growth. This appears to have continued into calendar year 2014, as one hears of a growth exceeding 4 % in the US economy in the quarter ended June 2014. With supportive monetary conditions and a small drag from fiscal consolidation, annual growth is projected to rise above expectations in 2014 in the USA. Growth in emerging market economies including India is however projected to pick up only modestly as shown in the chart below. The main reasons for the subdued / slow growth in the domestic scenario were the low demand especially for capital and industrial goods, depreciation of the INR, continuing high inflation leading to elevated interest rates and the fiscal policy paralysis. In the September quarter of 2013, the INR faced a major challenge and depreciated to Rs.68.8 vs the USD before strengthening slightly to the Rs.63-64 levels .The lack of growth or flat growth was therefore seen in all major sectors viz. manufacturing, the core sector and even in the service sectors. Infact the slowdown in the services sector can become a cause for concern, as it recorded the lowest growth in 12 years. The agricultural sector was to some extent the saving grace due to a good monsoon in 2013, which helped it to grow by 4.6% in FY 2013-14. However, as we go into print, we hear of some positive trends and the possibility of India''s GDP reaching the 5.40 % levels in 2014- 15. Although it is probably too early to make a call as to whether the nation is definitely getting back to a higher growth path yet given these developments and a new Government in power with a decisive mandate, one expects the overall economic environment to improve in the near future. In 2013-14, a sharp decline in imports, restrictions on gold imports and a moderate growth in exports resulted in a decline in India''s trade deficit and led to a lower CAD of 1.7% of GDP as against 4.7% in 2012-13. The foreign exchange reserves again touched around US $300 billion in March 2014 and are expected to improve further. The economy is expected to pick up significantly in the first quarter of FY 14-15 but the pace of recovery may be gradual in the rest of the year. Investment revival, strengthening of macroeconomic stability, creation of non-agricultural jobs, strengthening of infrastructure, and boost to agricultural development would be the priorities for revival of growth. Indian Automobile market and our Future Outlook The Indian auto sector is one of the most vibrant industries and contributes around 22% of the Country''s manufacturing GDP. This sector has reported high growth rates of upto 26 percent in the past but has also shown a negative growth in some segments during past years. The overall sales during April-March 2014 stood at 21,529,431 units as against 20,692,608 units in April- March 2013 thus registering a marginal growth of 4.04% over the same period last year. The growth continues to be on account of growth in two-wheelers production, especially scooters. The total sales (including exports) of Passenger Vehicles during April-March 2014 were at 3,097,192 as against 3,224,429 in the previous period and registered a negative growth of 3.95%. Similarly, sales of Commercial Vehicles stood at 709,794 against 873,238 and registered a negative growth of 18.72%. The sales of Two Wheelers during April-March 2014 stood at 16,889,419 against 15,753,653 in previous year. Within the Two- wheeler segment, scooters and motorcycles grew at 22.63% and 4.32% respectively. For the year 2013-14 the automobile sector has shown a sluggish growth citing high ownership costs like high fuel costs, road tax etc coupled with slow industrial and rural income growth. The Indian Auto market has the potential to dominate the Global auto industry. Over the next few years, solid but cautious growth is expected due to improved purchasing power, new models and untapped markets. All these give a promising opportunity for automobile manufacturers. Company Performance and Strategy Your company has made major strides in understanding and managing the VUCA in the environment and despite the challenges in the industrial and auto sectors has delivered results very similar to the prior year. The sales turnover for the period stood at Rs. 361.02 crores. The profit before tax and after tax was Rs. 22.06 crores and Rs. 15.93 crores respectively, compared to Rs. 23.64 crores and Rs. 16.22 crores during the same period in the previous year. Your company has the capability to achieve excellence in the coming periods, because it has both consolidated and diversified its production capacity through significant internal re-organisation in both its core and strategic areas to prepare for the 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 with its Green ''ECOFAC'' plant which has been awarded the Gold level of certification by the India Green Building Council. To keep up the tradition of rewarding co-operative efforts, the Company has shared the gains among the shareholders of the company by already declaring a 10% interim dividend. Your Board of Directors has further reviewed the cash position of the Company and has recommended a final dividend of 15% for your approval. A total payout of Rs.4.69 Cr. is being appropriated for this purpose. Your company 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. Besides being cost competitive, delivering to strict schedules and adhering to high quality standards are the main keys of success for auto component manufacturers, especially to enter into and grow export markets. Your company possesses all the above skills and is appreciated by customers all over the world. Keeping this in mind, your company is today tapping new geographies due to the high potential available in the export markets. Before concluding, 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 despite all odds. My sincere thanks to all our customers, our supply chain partners, our bankers, and my Board colleagues for their wise guidance from time to time. I am confident that this journey will continue to be equally exciting and rewarding as we move ahead. Deep Kapuria Chairman