It is indeed a great pleasure for me to present before you the annual
performance of the fiscal 2008-09, a year which was quite turbulent and
tumultuous financially and also in terms of industrial growth. The
Indian economy continued to register impressive GDP growth, although
the rate of growth declined marginally over the previous year. The
level of industrial productivity has also begun to decline, as a result
of fiscal constraints imposed on money supply and the raising of
interest rates, especially in the second half of the fiscal. The
overall economic recession prevalent in the country has severely
affected the purchasing power of the common man.
Let me take you to a quick look to the performance of the Company in
terms of figurjes. Your Company recorded net revenue of Rs.31,677.67
lakhs, increase of 13.90% over the previous year of Rs. 27,81 1 lakhs.
The Net Profit after tax (excluding after tax Hon recurring profit of
Rs.2,277.92 lacs), increased from Rs. 1,464.39 in 2007-08 to Rs.
1,734.65 lakhs in 2008-09, an increase of 18.46%. Considering the
improved profitability, the Board has recommended a dividend of Rs.2.50
per share on the paid-up share capital of the Company.
The performance of the Company was badly hit in the third quarter of
the fiscal under review. Moreover, high fluctuation in the price of the
basic raw-material copper had affected the profitability of the product
cable. As the Company was not actively involved in forward bookings,
the loss on account of the volatility in the price of the copper was
less. Your Company was able to do well in terms of sales turnover in
some of the products, i.e. fans, solar water heaters, pumps and of
course in cables.
With the whole-hearted efforts of your Management, the Company was able
to complete four of its projects, mentioned in the offer document. Your
Company was able to set up two state of the art facilities for
manufacture of building wire and power cables. The investments up to
31s1 March 2009 towards these factories were Rs.38.75 crores. The
Management is confident of capitalising on the output of the two new
During the year under review, the Company was able to add a new product
to its folder, i.e. Digital Home UPS. The R&D wing of the Company is
engaged in continuous research to meet the customer demand for new
models with unique or customized features and improved quality.
The outlook for the future seems to be good aiding our vision to become
a national player in the area of electrical and electronic segment.
Focus will be given to penetrate the North Indian markets by adopting
new strategies and also on export sales. The Management will also
concentrate on industrial clients to get a sizable turnover in the sale
of jLT Cables. Your Management hopes that the desired goals can be
achieved with the contribution of highly motivated and innovative team
of employees at all levels and with them I am confident of taking your
Company to greater heights in the years to come.
With Best Wishes
P G R Prasad
28th May, 2009