INDUSTRY STRUCTURE AND DEVELOPMENTS
The Company is engaged in the business of importing coils and profiles
and trading them into the Indian market. The Company envisages a long term potential for
steel consumption in the domestic market. The Steel Industry is considered as backbone of
the modern society and has direct correlation with the Industrial development of the
Country.
In the Financial year 2022-23 the global economy faced several
challenges like Russia-Ukraine war, interest rate hike by the central banks. Monetary
tightening by the central banks across the world helped bring the trajectory downwards.
The unwinding economic events weighed down global economic growth prospects. Russia-
Ukraine war disrupted the supply chain. Global GDP growth is estimated to fall from 3.4%
in 2022 to 2.8% in 2023.
Performance of the global economy was better than earlier projections,
given the lower-than-expected severity of the Russia- Ukraine war and high energy prices.
Manufacturing PMI, which fell below the 50-level mark is moving up in most economies.
Chinas re-opening has further improved the expectation of increased economic activities,
generating positivity for the global economy. Inflation levels in most of economies
peaked, but expected to fall to 6.6% in CY 2023, improving global financial conditions and
business sentiment.
IMF projects the global economy to grow by 2.8% in CY 2023 before
rebounding to 3% in CY 2024.
Indian Economy & Steel Industry
The Indian economy performed exceptionally well compared with the rest
of the world. India remains “Bright spot” for global steel demand. Steel is one
of Indias core industries, contributing more than 2% to the GDP. In FY 2023,
Indias crude steel production increased by 4% to 125 million tonnes. Indian
governments continuous focus on infrastructure building has led to an increase in Indian
steel finished consumption by 13% to 119 million tonnes in FY 2023.
Indias domestic steel demand is estimated to grow annually by
7.5% to reach 128.85 million tonnes (mt) in the current financial year. According to
estimates by the Indian Steel Association (ISA), domestic steel demand stood at 119.86 mt
in fiscal 2022-23. Demand is expected to rise further by 6.3% to reach 136.97 mt in the
next financial year 2024-25 as per the ISA projections.
OUTLOOK
According to predictions by the World Steel Association, the steel
industry growth rate is estimated to be around 6.7% in 2023. The growth prospects and
steel industry outlook in India is favourable. Recent changes in export taxes and import
duties on steel, complemented by the rising demand for affordable housing, infrastructure
development and construction projects, has led to a pan-India need for steel metal.
Moreover, the governments initiative to make India self-sufficient has made room for
sustainable urban development, construction of proposed logistics parks and industrial
corridors all adding to the meteoric demand for finished steel and steel as a raw
material.
OPPORTUNITIES AND THREATS
The major threat to the global economy as a whole is inflation. The
action by the US government of increasing the interest rates sharply as a result of high
inflation, and to try and control it, has led to fall in consumption and purchases. It has
also resulted in the currencies of most countries depreciating against the USS. All these
factors are a threat to the growth in global trade.
Prospect for the steel sector in India, however, is seen to be bright
in the long term. Production capacities have increased. Government has introduced the
Productivity Linked Incentive Scheme (PLI) for the steel sector. The steel body also sees
growth coming for the Industry from investments in railways, infrastructure and automotive
sector which is making consistent efforts to boost sales of their lower segment priced
vehicles. The Company has a positive outlook to benefit from the commodity market revival
in the the year.
In India, color coated coils and profiles are mainly consumed in
construction and infrastructure sector. In recent years, color coated coils and profiles
have gained lots of acceptance in the domestic market and consequently their consumption
has tremendously increased in last several years. It is widely expected that color coated
coils and profiles will gradually replace traditional roofing and siding materials in
construction sector.
Your Company is cautious while looking for growth opportunities and
also for new markets in its product segments. The Company faces several market risks
arising in its normal course of business. The major threat to this industry include
variations in raw material prices, fluctuations in foreign currency exchange rate and
changes in interest rates which may have an adverse effect on the Companys financial
assets, liabilities and/or future cash flows.
The Company however has identified certain growth opportunities and is
planning to expand in those niche segments.
OPERATIONS/STATUS OF COMPANYS AFFAIRS
Standalone:
During the Financial Year under review, the Company has earned the
Total Income of Rs. 5,951.01 lakhs as compared to Rs. 8,983.23 lakhs in the previous year
and the Net loss after Tax is Rs. 534.81 lakhs as against Net Profit of Rs.414.63 lakhs
{including exceptional items) in the previous year.
Consolidated
During the Financial Year under review, the Company has earned the
Total income of Rs. 27,332.37 lakhs and the Net loss after Tax is Rs. 749.93 lakhs.
FUTURE STRATEGY
Your Company has taken innovative steps in strict negotiation for Raw
Materials sourcing, improved inventory management and increasing Domestic Sales. This
helped us improve operational performance of the Company. In keeping with the initiatives
taken by your Company for increasing investments, we are also in the process of enhancing
the product differentiation within the existing Colour Coating Line and also introduced
new designs in wood, marble, stones and flowers in various shades. The company is planning
to expand into the printed multi color design which has opportunities in various furniture
and interior and exterior segments of the construction industry. This would help increase
not only business volumes, but also value addition of product lines. We foresee a much
bigger demand for domestic and export sales. Besides, our efforts to penetrate more
specialized market of appliance sector would also offer a much higher return. The demand
for Steel products in the market is definitely bound to improve and expected to grow
further in the medium to long term. With all these investments, your Company is expected
to do much larger business volumes in the coming years.
The Company has been exploring new business verticals under different
product line like
1. Stone Coated Roofing
2. Self-drilling screws for roofing/cladding/paneling etc.
3. Designer coated steel products like Wood, Marble stones, Floral
prints for wall, Ceiling Panels/Louvers/Furniture/Fencing etc.
In addition, the Company has been exploring exports of our existing
product line as well as the designer products to the quality conscious European Markets.
Company is also in real state business. To expand its business in this
sector, company entered into new venture La Tim Industrial Park, large land parcel in
Khopoli-Pali area, LaTim Group brings huge business potentiality, among an existing hub of
steel industries including Tata Bhushan Steel Ltd., Asian Colour Coated Ispat Ltd., Uttam
Galva Steels, Top worth Pipes and Tubes, Maharashtra Seamless Tubes & JSW Steel Plant
and many more in the nearby vicinity.
RISK AND CONCERN
While risk is an inherent aspect of any business, the company is
conscious of the need to have an effective monitoring mechanism and has put in place
appropriate measures for its mitigation including business portfolio, financial, legal
& internal process risk.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The Companys internal financial control systems are commensurate with
the nature of its business and the size and complexities of its operations. These systems
are designed to ensure that all the assets of the Company are safeguarded and protected
against any loss and protected against loss and that all transactions are properly
authorized, recorded and reported. The company is always trying to improve on the internal
controls to further safeguard any leakages.
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT,
INCLUDING NUMBER OF PEOPLE EMPLOYED:
It is your Companys belief that people are at the heart of corporate
purpose and constitute the primary source of sustainable competitive advantage. Your
Companys belief in trust, transparency and teamwork improved employee productivity at all
levels.
The Company continues to lay emphasis on developing and facilitating
optimum human performance. Recruitment process has been strengthened to ensure higher
competence levels. During the year, the Company successfully inducted people to meet the
needs of the growing business, both from outside as well as through talent management and
capability development initiatives aimed at development of existing employees. The company
has made three recruitment in the current financial year.
As on 31.03.2023, there are thirteen employees employed in the Company.
DISCLOSURES
During the year the company has not entered into any transaction of
material nature with its promoters, the directors or the management, their subsidiaries or
relatives etc, which may have potential conflict with the interest of the Company at
large. All the details of transaction covered under related party transaction are given in
the notes to accounts.
CAUTIONARY STATEMENT:-
Certain statements in the Management Discussion and Analysis and
Directors Report describing the Companys Objectives, Strategies, projections, outlook,
expectations, estimates and others may constitute forward looking statements and
progressive within the meaning of applicable laws and regulations. Actual results may vary
from those expressed or implied, depending upon economic conditions, Government Policies
and other incidental factors. Readers are cautioned not to place undue reliance on the
forward looking statements
For And on Behalf of the Board of Directors LA TIM METAL &
INDUSTRIES LIMITED
|
Sd/- |
Sd/- |
|
Rahul M Timbadia |
Kartik M Timbadia |
|
Managing Director |
Chairman |
|
(DIN: 00691457) |
(DIN No. 00473057) |
| Date: 07/08/2023 |
|
|
| Place: Mumbai |
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+91-9892691696
