Management Discussion and Analysis Report
Your directors have pleasure in presenting the Management Discussion and Analysis Report for the year ended on 31st March 2023.
The objective of this report is to convey the Managements perspective on the external environment and Pre- engineering Building and Roofing industry, as well as strategy, operating and financial performance, material developments in human resources and industrial relations, risks and opportunities and internal control systems and their adequacy in the Company during the FY 2022-23. This should be read in conjunction with the Companys financial statements, the schedules and notes thereto and other information included elsewhere in the Integrated Report and Annual Accounts 2022-23. The Companys financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) complying with the requirements of the Companies Act, 2013, as amended and regulations issued by the Securities and Exchange Board of India (SEBI) from time to time.
The global economy witnessed a recovery during the financial year 2022-2023, following the challenges posed by the COVID-19 pandemic. Major economies showed signs of improvement, with GDP growth rates returning to pre-pandemic levels. Fiscal stimulus packages, accommodative monetary policies, and rapid vaccination drives played a crucial role in bolstering economic activities.
Despite the overall recovery, there remained certain concerns, such as supply chain disruptions, inflationary pressures, and geopolitical tensions, which impacted various industries, including construction. The uncertainty surrounding the pandemics long-term effects and the emergence of new variants posed risks to the global economic recovery.
Indias economy rebounded strongly in FY 2022-2023, registering robust GDP growth. The governments policy support and economic reforms aimed at attracting investments contributed to the revival of industrial activities. Additionally, infrastructure development and affordable housing schemes fuelled the construction sectors growth.
However, challenges like inflation, rising commodity prices, and high unemployment rates persisted. Furthermore, the country had to tackle potential waves of the pandemic, which could disrupt economic activities and hamper growth in specific sectors.
The global PEB industry experienced moderate growth during FY 2022-2023. As economies recovered, construction activities gained momentum, driving demand for PEB structures across various sectors such as commercial, industrial, and infrastructure. Technological advancements, including Building Information Modeling (BIM) and sustainable construction practices, also influenced market trends.
While the global PEB industry showed promise, competition intensified, with new entrants and established players vying for market share. Volatility in raw material prices and logistical challenges impacted the industrys profit margins.
The Indian PEB industry performed admirably during FY 2022-2023. The sector benefited from government initiatives promoting infrastructure development, urbanization, and Make in India campaigns. Increased foreign direct investments and private sector spending on construction projects also contributed to the industrys growth.
As businesses sought cost-effective and time-efficient construction solutions, the demand for PEB structures surged in India. The industry players capitalized on this opportunity, offering innovative designs, customization options, and sustainable building practices.
The demand outlook for PEB structures appears favourable for the coming years. The increasing adoption of PEBs in various industries, such as warehousing, manufacturing, and logistics, is expected to drive demand. Additionally, the growing focus on green and energy-efficient buildings could open up new opportunities for sustainable PEB solutions.
Infrastructure development projects, including airports, metro rail networks, and stadiums, are anticipated to boost demand for large-scale PEB structures. Furthermore, the Indian governments continued emphasis on affordable housing and smart cities projects is likely to create a significant demand for PEBs.
Several factors contribute to the growth of our PEB manufacturing company:
Despite the positive outlook, we face several challenges that require careful management:
Major Highlights
The analysis of major items of the financial statements is given below:
393.86 Lakhs of FY 2021-22. An increase of 23.20 Lakhs (almost 6%) in PAT primarily due to high demand of product & Services of the Company as compare to the previous financial year.
*The Company issued Bonus Shares in the ratio of 3:1 to shareholders of the Company in FY 2021-22. And therefore, EPS of F.Y. 2020-21 has been restated according.
During the year under review, BRPL continued to focus on operational and marketing excellence to achieve its aspiration of becoming the most reputed and valuable Roofing and PEB Company. Steel buildings are the fastest systems of industrial construction today and are popular all over the world in the form of Pre-engineered Buildings (PEB). PEBs are custom-designed, expandable, durable and maintenance free. Construction activity, including those of industrial and commercial buildings, is likely to gain momentum over coming quarters. With a clear shift towards PEBs from conventional structures, the PEB segment would grow faster.
As we move forward, our company will focus on the following key strategies:
The Company has an Internal Financial Controls (IFC) framework, commensurate with the size, scale, and complexity of the Companys operations. The Board of Directors of the Company is responsible for ensuring that Internal Financial Controls (IFC) have been laid down by the Company and that such controls are adequate and operating effectively. The internal control framework has been designed to provide reasonable assurance with respect to recording and providing reliable financial and operational information, complying with applicable laws, safeguarding assets from unauthorized use, executing transactions with proper authorization and ensuring compliance with corporate policies. The Companys internal financial control framework is commensurate with the size and operations of the business and is in line with requirements of the Companies Act, 2013. The Company has laid down Standard Operating Procedures and policies to guide the operations of each of its
functions. Business heads are responsible to ensure compliance with these policies and procedures. Robust and continuous internal monitoring mechanisms ensure timely identification of risks and issues. The management, statutory auditors and internal auditors have also carried out adequate due diligence of the control environment of the Company through rigorous testing.
The Company has in place adequate systems and processes to ensure that it is in compliance with all applicable laws. The heads of the Company is responsible for implementing the systems and processes for monitoring compliance with the applicable laws and for ensuring that the systems and processes are operating effectively. The Company Secretary and Managing Director, places before the Board, at each meeting, a certificate of compliance with the applicable laws. The Company Secretary & Managing Director also confirms compliance with Company law, SEBI Regulations and other corporate laws applicable to the Company.
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