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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, 16:00
150.00 -2.30 (-1.51%)
Volume
AVERAGE VOLUME
5-Day
741
10-Day
1,290
30-Day
694
2,230
  • Prev. Close

    152.30

  • Open Price

    150.30

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Feb 28, 15:50
148.15 -4.15 (-2.72%)
Volume
AVERAGE VOLUME
5-Day
3,371
10-Day
4,105
30-Day
4,841
6,929
  • Prev. Close

    152.30

  • Open Price

    145.00

  • 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, The global economy continues to struggle with moderate growth in 3014, Europe remains a concern because of issues around I he Greek economy. Events such as the uncertainty related to The Russia-Ukraine crisis, the Middle-East and the economic slowdown in China have fuller added to the woes of the global economy. The rapid decline in oil prices and quick adjustments in exchange rates, the appreciation of US dollar and weakening of most other currencies, notably the euro have had a major impact on global trade flows. But contrary to what is happening around the world, FY 2014-15 has been a good one for The Indian economy. The Indian economy has been successfully placed on growth track on the back of strong policies and a new optimism and it grew in excess of 7% for the first time since the FY 2010-11 Global and Domestic Economic Affairs 2014 was a year of mixed fortunes (or The world economy. While advanced economies relented a pick-up in growth relative to The previous year. emerging market & developing economies witnessed a slowdown. As per The International Monetary Fund (IMF), advanced economies grew by 1.8% in 2014 compared to 1.4% in 2013. while emerging market & developing economies growth reduced from 5% to 4.6%. The growth in advanced economies is projected to strengthen to 2.1% in 2015. hut in emerging market and developing economies it is expected to be weaker. For emerging and developing economies except India, the IMF has projected a weaker pace of growth term 4.6% in 2014 to 4.2% in 2015. The slowdown reflects the dampening impact of lower commodity prices arid lighter external financial conditions. In 2016, growth in emerging market and developing economies is expected to pick up to 4.7 %. largely on account of the projected improvement in economic conditions in a number of distressed economies, including Russia and some economies in the Middle East and North Africa. The US economy performed comparatively well during 2014 due to factors such as improvement in domestic demand, advantage of drop in global of prices and an accommodative monetary policy. However, during the first quarter of 2015, the US economy was confronted with sluggish conditions due to the harsh winter weather, port shrikes, and downsizing in the energy sector, The world economy grew at 3.4% in 2014 and is projected to grow at 3.3 % in 2015, A setback to activity is being felt in Greece and China and the impact has resulted in a downward revision in global growth to 3.3% for 2015 from earlier outlook of 3.5%, In 2016 however, growth Is ex peeled to strengthen to 3.8%. nevertheless, the underlying drivers for a gradual acceleration in economic activity in advanced economies i.e easy financial conditions, a more neutral fiscal policy in the euro area, lower fuel prices improving confidence and labor market conditions remain intact. In emerging market economies, the continued growth slowdown reflects several factors. including lower commodity prices and tighter external financial conditions, structural bottlenecks, rebalancing in China and economic d stress related to geopolitical factors. A rebound in activity in a number of distressed economies is expected to result in a pickup in growth in 2016. I believe (he economic turnaround is underway buy the recovery will be gradual and the world economy is still a few years away from attaining sustainable growth. Contrary to growth outlook for the global economy, the financial year (FY) in India started with a ''good feel ''factor of a new majority government and possibilities of external vulnerabilities on the wane. Coupled with continuing softening of oil prices since September 2014, it was projected as the year of revival. India is set to emerge as the world''s fastest-growing major economy by 2015 ahead of China, as per the report of The World Bank. The improvement In India''s economic fundamentals has accelerated in the year 20f 5 with the combined impact of strong government reforms and RSI''s inflation focus supported by benign global commodity prices. The year also witnessed lower volatility in the foreign exchange market with the rupee remaining relatively stable during 2014-15. as compared to 2013-14. It remained in the range of Rs. 60 to Rs. 63 per US Dollar during most part of the year. The Indian Rupee appreciated significantly against the other global currencies like the Euro and Japanese Yen during 2014-15. The Indian economy grew at 7.3% in 2014-15 as compared to 6 9% in 2013-14 as per the new series of national accounts with the base year of 2011-12. This growth came from improvement in the performance of both services as well as manufacturing sectors. The fourth quarter (January-March) of last tinsel saw the economy grow al 7.5 % which was better than the growth recorded by China. Indian Automobile market and our Future Outlook The Indian automotive market is full of tremendous opportunities and is capable of scaling to greater heights. The Indian automotive industry has experienced healthy sequential growth during 2014-15. The overall sales during April-March 2015 registered a growth of 6-32%. The total sales (including exports} of Passenger Vehicles during April-March 2015 were al 3.223.581 as against 3,099,651 in the previous period and registered a positive growth of 4.03%. However, sales of Commercial Vehicles stood at 700.743 against 709,901 and registered a negative growth of 1.29%. The sales of Two Wheelers stood at 18.462.178 against 16,890,778 in previous year, thereby registering a growth of over 9.30%. Within the Two-wheeler segment, scooters and motorcycles grew at 27.19% and 4.26% respectively. The growth in 2014-15 can be attributed to factors such as strong buoyancy in the end-user industry, recovery of the global economy, improved consumer sentiment and return of adequate liquidity in the financial system, fiscal stimulus programme of the government etc. From the ground level, three powerful forces are impaling the auto industry; shifts in consumer demand, stricter regulatory requirements for safety and fuel economy, and the increased availability of data and information. Although this is not likely to have a major impact on sales volume, it is affecting how much people are willing to pay for automobiles. Since coming to power last year the new government''s main concern has been the revival of growth in the Indian economy and crucially enough, it has chosen to give the Industrial sector a structural push to achieve its goal. The government announced the ''Make in India'' initiative, which intends to make manufacturing the engine of growth and also generate employment. Under the initiative there would be increased focus on new processes, new infrastructure, new sectors and creating a new mindset In order to increase the share of manufacturing in GDP to 25% from the current 17%.The locus of Make In India Programme is on 25 sectors qui of which one of the important sectors is Automobiles. Over the last decade countries in our neighborhood like China and other East Asian countries had developed strong economic models that relied more on exports to develop their automotive industry as well as pave the way for their raped economic growth. Our government''s latest initiative also aims to follow as similar path. However, very recent events towards the end of August 2015, caused by the devaluation in the Chinese Yuan, have resulted in a steep volatility in the BSE Sense and NSE and have also led to a Significant loss in the value el the I MR vs. the USD lo levels of Rs.66 - 6fl, This uncertainty will impact the RSI''s policies and reduction in interest riles may be further deterred. India''s GDP growth in FY 16 -16 could therefore be held back (d 7 % levels, instead of rising to 8 % . This is an area of concern for all of us and especially lo the manufacturing sector. The significant monsoon deficit could also be a constraint for such growth targets, with its negative impact on agricultural production and rural purchasing power for manufactured products. Company Performance and Strategy You win be glad to know that there are very few Companies in the world which supply to OEMs manufacturing two wheelers to truck and your Company is one out of those few and caters to the needs of major , two wheeler, Commercial Vehicles, Tractor and Off-road vehicle manufacturers in India and overseas, . The Company''s principle products include two wheeler transmission components, engine and transmission components for commercial and passenger vehicles, precision forgings etc. I am pleased to inform you that the financial year 2014-15 was an encouraging year for your Company and your Company''s layover has crossed the Rs, 400 crore mark in 2014-15 & touched Rs, 432 crores as compared to Rs. 361 crores in the previous year (net of excise duly). The profit before tax and able* lax was Rs. 26.30 crores and Rs. 18.42 crores respectively, compared to Rs. 22.06 crores and Rs. 15,93 crores in the previous year, I am further pi eased lo inform you that in order to share our gains with you. Your Board of Directors had declared an Interim Dividend of 10% and further recommends a final dividend of 15% to your approval. Your company will continue to explore opportunities for growth in the years ahead, Though there will be challenges on many fronts but I am confident that together we will be successful in the Endeavour to scale up operations so as to achieve long term sustenance and growth, We have enough experience in our portfolio as manufacturers and suppliers of gears and transmission equipments. Now, we will be called as a fully fledged ''Assembly supplier. We are proud to say that we have started supplies of counter salts. mam shafts arid kick starters assemblies to the major OEM customer in Two wheeler segment to their satisfaction. The benefit of being an ''Assembly'' supplier is not only the additional value add, but will also ensure the growth of business at higher levels. Approaching our goals with discipline and focus has been essential to our approach. Each time we look at a growth horizon, we look at how we can improve and add value to our business; how we can make a difference in the markets that we operate in, make our offerings more expansive and deliver on our mission to create healthier communities globally. Your Company''s strategy has been to focus on Tour pathways: leveraging our core strengths, improving the efficiency of our operations, optimizing our resources and enriching the capabilities of our people as we move on to a higher growth trajectory. As I conclude. I, on my behalf and on behalf of my colleagues on the Board would like to thank and record our sincere gratitude to all our stakeholders for the confidence & trust reposed upon us and our deep appreciation to all employees of the Company for their hard work, commitment and whole hearted support for achieving company''s goals and targets. I further thank all our customers, our supply chain panniers and our bankers for reposing their confidence & support in us, As we step into a new phase, there are many reasons to be excited about the future of our business. There will be more opportunities to deliver something meaningful and purposeful as we race ahead with our plans for your Company''s future in the years to come. I am confident that together we will chart the road map of the Company for continuous growth & profitability and will steer the Company to greater heights. Deep Kauri Chairman