The company held its AGM on 13 Aug 18 and was addressed by Mr. S K Nevatia CMD
Key Highlights
The Primary customer of company's products continues to be Indian Railways which is followed by other industries including Power, Steel, Electricals and Electromechanical components etc.
The Railways Division of the Company is having several elements of products such as Electrical Equipment, Mechanical Equipment, Control Software and Electronics Equipment.
More electrification and modernization of Railways provide a decent visibility of orders for the company.
The company has an order book of around Rs 175 crore and is comfortably placed for FY 19. Aims to achieve net sales of around Rs 160 crore for FY 19. No more slow moving orders and no bad debts provision required.
Variety of products is added to the product offerings. Company continues to focus on development of new products for Railways and also for other applications. Company is planning further expansion of its product range, this will help for further improving the performance in FY 19.
Expansion plan undertaken at Nashik for manufacture of Railway as well non Railway products has been completed during FY 18 at cost of around Rs 5 crore.
The company is a net importer and imports some key raw materials. Rupee deprecation can hurt margins.
June 17 quarter was affected by rains and GST, so June 18 quarter will be very strong in terms of sales and profitability.
Interest cost and rising rates are worrying.
Overall, while the company is in strong position in terms of orders, rising raw material and interest is a worry.
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