bcc fuba india ltd share price Management discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

Financial Performance:

During the year under consideration, there have been many improvements, both on the domestic as well as international fronts. Your Companys revenue from its core operations of printed circuit board manufacturing has increased to INR 28,65,19,916/-, with a Profit before Interest Tax and Depreciation of INR 3,38,52,356/-.

Our Earnings before Interest and Taxes (EBIT) has also grown to INR 2,90,91,195/-, as compared to the previous years EBIT of INR 1,43,38,600/-, thereby resulting in a 102.88% growth.

Further, during the year under review, the company has earned a Total Comprehensive Income of INR 2,25,01,858/-, as compared to INR 87,91,686/- from the previous year. Thereby resulting in a 155.94% growth from the previous year.

Leveraging on its strong reputation of the brand "FUBA" for producing high quality professional grades products, the company continues to attract new customer along with increasing the share of business from the existing customers.

For this, the company has already undertaken a massive expansion drive, wherein a lot of new machinery & working capital is being brought in.

Industrial Structure and Development:

With the increased digitization now-a-days, technology is being created and updated almost every day. People have started to use more and more electronics and machineries for their daily assistance than ever before. Such continuous increase in demand is resulting in an increase in the supplies, as all manufacturers want to avail the benefit of the surge. PCBs, being the nature they are, are the base of any electronic machine or gadget and hence, the demand for the same will only increase in the times to come.

Opportunities, Threats, Risk and Concerns:

The PCB industry is a very clinical industry and is the basic raw material for the whole electronic industry landscape. And since the electronic industry is increasing multifold every year, the PCB market is also increasing in the same proportion. Accordingly, there is no dearth of scope and opportunities.

Under the "Make in India" campaign of the Government of India (‘GOI), many OEMs have started purchasing domestically rather than importing their PCBs from other nations. This trend is expected to increase further in the coming few years. However, the volatility of the raw material prices is something that is to be looked at more keenly industry-wide.

The Industry Association is also in constant touch with the GOI to take steps to promote the domestic PCB industry along with the other industries that provide them the raw materials.

There are many new PCB manufacturers who are entering the market and bringing in new investments and innovations, however there are very few, including us, who manufacture professional grade PCBs as per the industry requirements and standards.

Outlook:

One of the objectives identified by the Government is to focus on enhancing the domestic manufacturing landscape with a focus on the growth of our export revenue and reduce our import burden. Market research showed that although India repeatedly referred to "30%" increase over the past 10-15-year period, the circuit board production base in India is still very small. The Governments "Make in India" campaign has promoted business and has impacted Company in a positive manner.

With this, the Company now has its keen focus on the e-mobility sector. As we are all aware, the government has the aims of electrifying all vehicles by 2030. Due to this there is large surge in the demand for e-mobility devices, equipments, services and infrastructure etc. we are proud to inform that we are currently engaged with many of Indias major Electric vehicle manufacturers and are regularly supplying to them. We are confident to become market leader in the sector in the near future.

To support our aim and vision, the Management has undertaken a massive expansion drive under which many new machineries ae being brought in. The activity also entails the infusion of more working capital so as to take the company to greater heights and strengths.

The management is fully committed to making the company as a leader in all its product categories.

Internal Control Systems and their adequacy:

The Company has a proper and adequate internal control system to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposition and those transactions authorized, recorded and reported correctly. The internal control is supplemented by extensive program of internal audits, review by management and documented policies, guidelines and procedures.

Industrial Relations and human resources development:

The industrial relations have been cordial and satisfactory. We recognize the importance of Human resources and give full respect for its development and are committed to the development of our human resource. Efforts continue to make the organization a great place to work.

Cautionary Statement:

Facts and figure in the Managements Discussion and Analysis describe the companys projection and estimates may be "forward looking predictions" and it may differ from the results.