Economic overview
Global economy
Volatile food and commodity prices and geopolitical conflicts in Europe
were the major impediments that adversely impacted the global economy. The negative
outcome of these disruptions was runaway inflation in most economies of the world,
prompting central banks to tighten their monetary policy stance to curb inflation.
According to the IMFs April 2023 World Economic Outlook report, the
global economy will register a growth of 2.8% this year before touching 3.0% in CY24. The
European Unions economy is projected to experience modest growth, driven by lower gas
prices and improved consumer spending. Supply chain constraints and market volatility have
considerably dampened consumer sentiment and lowered capital outflows. Several nations
continue to grapple with persistent demand- supply imbalances and decadal-high inflation
rates.
GDP growth projection (in %)
Outlook
The global economy appears poised for a gradual recovery from the
waning effects of the pandemic and geopolitical tensions. The economic output is expected
to witness steady growth, driven by stabilising inflationary pressures, reviving consumer
sentiment and investor confidence.
An optimistic global outlook would also be determined by the speed and
effectiveness of fiscal and monetary policy actions implemented to boost economic
expansion. The central banks have been tightening monetary policy, which is expected to
curb sticky inflation and foster long-term growth.
Indian economy
The Indian economy demonstrated resilient growth amid geopolitical
tensions and high inflation-induced global economic headwinds. India has emerged as one of
the fastest- growing major economies and, according to the final advance estimates of the
National Statistical Office (NSO), is set to register a growth of 7.2% in FY23. The growth
in FY23 can largely be attributed to the relatively strong performance of the economy in
the fourth quarter.
The Reserve Bank of India (RBI) is maintaining a stable monetary policy
stance given the sliding inflation trajectory, positive macro tailwinds and increasing
consumer aspiration. It decided to keep the repo rate unchanged for the second consecutive
time, opting for a hawkish pause.
The Indian Governments initiatives, such as the PM Gati Shakti
(National Master Plan), the National Monetisation Plan (NMP) and the Production Linked
Incentive (PLI) plan, helped in fostering economic growth. Additionally, stronger
prospects for manufacturing, services, agriculture, and related industries, along with
improved business and consumer confidence, are expected to support domestic consumption.
These factors coupled with accelerated credit expansion, are anticipated to contribute to
overall economic growth in the near term.
The Union Budget, 2023-24, has provided a promising outlook for the
Consumer Products and Retail sector. The Governments emphasis on financial inclusion,
measures to stimulate rural demand, the Make in India initiative, and support for
start-ups are expected to create significant employment opportunities. This will result in
an increase in disposable income and consumer demand, leading to further economic growth.
Trend in Capital Expenditure
In addition, India stood out as one of the few countries that exhibited
a lower corporate debt-to-GDP ratio. This robust debt profile of Indian companies has
played a crucial role in maintaining the overall macroeconomic stability of the Indian
economy.
For FY23, GST collection in India has been above INR 1.4 lakh crore a
month, indicating robust business environment and consumer sentiment.
Outlook
Indias economic outlook remains promising due to the conducive
domestic policy environment and the Governments commitment to structural reforms. Despite
facing global challenges, the country has managed to sustain robust economic activity.
Factors such as increasing disposable income, easy access to credit, and declining
interest rates, supported by a stabilising inflation trajectory, are expected to drive
economic growth in the coming years.
Industry overview
Global household appliance
The global household appliance sector is currently witnessing
consistent expansion and is projected to achieve a volume of 2.1 billion units by the year
2030. This growth trajectory corresponds to a Compound Annual Growth Rate (CAGR) of 4.2%
during the eight-year period from 2022 to 2030. The segment of major household appliances
is predicted to grow at a CAGR of 4.6% and is expected to attain a volume of 1.2 billion
units by 2030. Moreover, the U.S. market for electrical household appliances is
anticipated to reach a volume of 409.2 million units in the year 2022.
Outlook
The household appliances segment is expected to grow, with a revised
CAGR of 3.7% over the next eight years, considering the ongoing post-pandemic recovery.
China is expected to reach a market size of 438.7 million units by 2030, at a CAGR of 7.2%
from 2022 to 2030. Other significant markets include Japan and Canada, which are expected
to grow at 2.2% and 3.5%, respectively, over the period of 2022-2030. Within Europe,
Germany is projected to grow at a CAGR of approximately 2.8%. These trends highlight the
global demand for electric household appliances and the significant growth potential in
emerging economies, especially in China, as consumers seek innovative and efficient
appliances to enhance their lifestyles.
Indian household appliance market
The Household Appliances market in India demonstrates significant
potential for growth. With a projected revenue of USD 74.49 billion in 2023, the market is
set to witness a compound annual growth rate (CAGR) of 5.65% over the period from 2023 to
2028. Major appliances has the highest market volume, rising to US$47.95 billion in 2023.
The Household Appliances market has emerged as a significant
contributor to the economy, generating substantial revenue supported by a strong consumer
base and purchasing power. Moreover, online sales channels have significantly impacted the
industry, with 3.5% of total revenue expected to be generated through online platforms by
2023.1
Indias mixers and grinders market
The Indian market for mixer grinders has witnessed substantial growth,
with a notable increase of 18% between 2016 and 2022. Interestingly, while the global
mixer grinders market faced a slowdown, the domestic market in India has surpassed global
growth rates in recent years and is poised to maintain this trend in the future.
Projections suggest that this growth momentum will continue, with the market expected to
expand by at least 7% over the next decade.
Indias cooktop market
The Indian cooktop market is experiencing a significant transformation
driven by rapid urbanisation, evolving consumer preferences, and changing lifestyles. With
a projected compound annual growth rate (CAGR) of 6.23% from 2024 to 2028, the market is
anticipated to reach a value of USD 1310.02 million by 2028. This growth is primarily
fuelled by the increasing purchasing power of Indian consumers, who are now seeking
high-quality cooktops that offer advanced features and convenience. As disposable incomes
rise, consumers are actively investing in innovative cooktops that provide enhanced
functionality, catering to their evolving cooking needs.
Outlook
The Indian Household Appliances market showcases substantial potential
for growth, with increasing revenues, expanding online sales channels and a strong
consumer base. As the market continues to evolve, industry players are well- positioned to
capitalise on the increasing demand and drive further growth in the industry.
Anticipating future growth, the Household Appliances market is
projected to reach a volume of 551.30 million pieces by 2028, with a steady volume growth
rate of 2.9% expected in 2024. The average volume per household in the Household
Appliances market is expected to amount to 1.46 pieces in 2023. This suggests a rising
need for appliances among Indian households and presents manufacturers and retailers with
opportunities for innovation and market penetration.2
Global small domestic appliances
The global small domestic appliances market exhibited strong growth
with a value of USD 185.49 billion in 2022 and a projected valuation of USD 193.83 billion
in 2023. It is anticipated to further expand and reach USD 271.23 billion by 2030,
reflecting a compound annual growth rate (CAGR) of 4.92% during the forecast period.3
The markets positive performance can be attributed to the increasing
demand for convenience and efficiency in domestic tasks, coupled with technological
advancements in the small domestic appliances sector. These advancements have led to the
introduction of innovative and smart appliances, offering enhanced functionality and
user-friendly features.
Outlook
The global small domestic appliances market has experienced substantial
growth and is poised for further expansion. The markets upward trajectory can be
attributed to factors such as the demand for convenience, technological advancements,
changing consumer lifestyles and urbanisation. As the market continues to evolve,
manufacturers are expected to capitalise on opportunities, arising from product innovation
and expanding distribution networks, to sustain their growth and meet consumers evolving
demands. Additionally, favourable economic conditions, coupled with the growing adoption
of smart home technologies, are likely to fuel the markets expansion in the coming years.
Indian small domestic appliances
The Indian small domestic appliances market has seen significant growth
due to the rising demand for kitchen appliances with advanced features. Factors such as
urban migration, an increase in the number of working women, the prevalence of nuclear
families and fast-paced lifestyles have contributed to the surge in demand for modern
appliances that offer convenience and time-saving benefits.
This market segment has witnessed significant innovation through
continuous research and development, leading to the introduction of cutting-edge products.
As a result, there is a growing demand for small domestic appliances such as mixers,
grinders, juicers, microwave ovens, toasters, vacuum cleaners, electric kettles, coffee
machines and more.
The revenue generated in the Small Kitchen Appliances segment is
projected to reach a substantial amount of USD 14.82 billion in 2023. Moreover, the market
is expected to grow steadily at a CAGR of 5.27% in 2023-2028.4
Outlook
With continuous research and development efforts leading to the
introduction of innovative products, the market is witnessing remarkable advancements. As
consumers embrace contemporary lifestyles and seek efficient solutions, the Indian small
domestic appliances market is well-positioned to meet their needs and contribute
significantly to the overall growth of the sector.
In terms of volume, the Small Kitchen Appliances segment is expected to
reach 247.90 million pieces by 2028. In addition, there is a projected volume growth of
2.3% in 2024 for this market segment. The average volume per household in the Small
Kitchen Appliances segment is expected to be 0.68 pieces in 2023.
Home appliances
The Indian market is considered one of the key markets for the home
appliances and consumer electronics industry. The pandemic has brought about significant
changes in consumer attitudes towards home appliances in the country. With remote work
becoming the norm, there has been a significant increase in the demand for home
appliances.
This surge in demand for home appliances is expected to continue in the
long term, indicating a steady growth trajectory for the industry. Currently, the
penetration of home appliances in India is relatively low, which presents a significant
opportunity for companies in the sector to capture a larger market share.
As urbanisation continues and awareness of premium products spreads to
rural areas, there is a vast untapped potential for home appliance companies to deepen
their reach and cater to a wider audience. The need for convenient home appliances further
contributes to this opportunity.
The adoption of advanced technology has become commonplace in the
industry. The Government of India has also emphasised the importance of increasing
domestic production of home appliances, providing an impetus for growth. With such support
and initiatives, the long-term prospects for the home appliance segment in India remain
optimistic.
| Key growth drivers |
|
| Government initiatives |
Schemes like Housing for All and Power for All have
boosted the consumer durable industry, including the consumer electronics and equipment
sector. The Production Linked Incentive (PLI) Scheme has encouraged domestic manufacturing
of consumer durables, particularly white goods like air conditioners and LED lights. |
| Rising income levels |
Increased household incomes, driven by the growing number of
working women and nuclear families, have created a demand for user-friendly and innovative
consumer-durable products. The increasing aspirational middle class, resulting from urban
migration, also contributes to the growth of the home appliances market. |
| Growth of e-commerce platforms |
The penetration of the internet in urban, semi-urban, and
rural areas has facilitated the growth of the consumer electronics and appliance industry.
E-commerce platforms have made products more accessible and affordable, enabling consumers
to compare and choose from a wide range of options. |
| Increasing electrification and market expansion |
Improved availability of power in small towns and villages
has led to a growing demand for consumer durables in rural areas. In urban markets, the
desire for premium products has shortened the replacement cycle, driving market expansion
as consumers upgrade to the latest models. |
| Quicker transition to the organised sector |
The consumer electronics industry is witnessing a shift from
the unorganised sector to the organised sector. Factors such as the pandemic, the
implementation of GST, and the entry of online retailers have contributed to this
transition. |
| Green and sustainable focus |
The need for environmental protection has gained prominence,
with India pledging support to the UN Sustainability Goals, 2030. Energy optimisation and
energy-efficient appliances have become increasingly important to customers, driving
acceptance of products with eco-friendly features. |
| Innovation |
Continuous product innovation, particularly in domestic
cooking appliances and smart home technologies, appeals to customers who seek automated
products with minimal human intervention. The demand for IoT and smart technology-driven
appliances is on the rise. |
| Digital acceleration |
Digital transformation has played a significant role in the
growth of the home appliances market. Digital platforms have enabled manufacturers to
reach a broader customer base and offer personalised experiences, driving sales and
customer loyalty. |
| Growing urbanisation |
The increasing urban population, along with the
nuclearisation of families and a rising aspirational middle class with high disposable
income, fuels the demand for premium kitchen appliances. The migration of people from
rural areas to metro cities contributes to the growth of the small domestic appliances
market. |
Company overview
Butterfly Gandhimathi Appliances Limited ("BGMAL or
Company"), established in 1986, is widely recognised as a trailblazer and one of
the few fully integrated manufacturers of domestic kitchen appliances in the Country.
Renowned for its commitment to quality and innovation, the Company has established
benchmark standards and achieved several industry-first milestones. BGMAL has emerged as
one of Indias most prominent kitchen appliances companies, having a significant market
presence both domestically and internationally. Crompton Greaves Consumer Electricals
Limited acquired a majority stake in March 2022. Both the Companies have approved the
Scheme of Amalgamation in March 2023, which will result in the consolidation of their
respective businesses and operations. This strategic merger is expected to enhance the
Companys market position and augment its product portfolio. The proposed merger will also
lead to the simplification of the Corporate Governance structure, the convergence of
public shareholders at the parent Company level and the alignment of interests for the
shareholders of both companies. The combined business is expected to realise synergies and
generate benefits for all stakeholders.
Products : :^:
The Companys leading and highly sought-after brand, Butterfly,
encompasses an extensive range of domestic appliances, comprising LPG stoves, mixer
grinders, table top wet grinders, stainless steel and aluminium pressure cookers,
stainless steel flasks and water Bottles, Power hobs, Kettles, Chimney hobs, and so on.
Technology :
The Company prudently invests in advanced process technologies,
including the adoption of cutting-edge machinery and equipment, innovative materials and
automation to enhance efficiency and quality. The Company is also investing in digital
acceleration, which involves leveraging technology and data to streamline operations,
optimise supply chain management and improve customer experiences. These strategic
investments reflect the Companys commitment to staying ahead of the curve in an
increasingly technology-driven market.
Global footprint : ^:h>;
The Company has a global footprint and exports its products to several
countries worldwide, including the United Kingdom, Canada, Australia, Japan, the Middle
East and various East Asian countries. The Companys global competitiveness and ability to
satisfy diverse consumer needs are a result of its commitment to quality, innovation and
customer-centricity.
Safety and Compliance : (?]
Safety and the well-being of employees have been the key focus areas of
the Company. Safety Gap Assessment was conducted and the identified issues are being
addressed on a
war footing basis. Safety initiatives have been implemented, including
the formation of a safety committee, the appointment of a safety officer, the nomination
of safety champions across departments, monthly safety reviews and daily safety pledges.
The Company provides high-quality PPE and conducts continued training and awareness
programmes to constantly sensitise all the employees on safety aspects. As a result, there
were significant reduction in reportable accidents and nonreportable accidents decreased
by 42%.
Compliance with relevant statutes has been the top priority of the
Company. A framework has been defined to ensure completeness and timeliness with respect
to adherence to all applicable laws and regulations.
Manufacturing :
The Companys fully integrated and advanced manufacturing plants
produce a wide range of domestic appliances. In line with its strategy to become a
pan-India player, the Company made significant efforts towards optimising resource
efficiency, product quality and productivity across its manufacturing plants throughout
the year. The Company underwent many operational advancements that were aimed at enhancing
productivity, reducing risks and improving product quality in the workplace. These
initiatives included the modification of motor plant processes and layout, the
installation of an SS Jar auto polishing machine and the introduction of online
granulation for injection moulding. The modification of motor plant processes and layout
is intended to boost productivity by eliminating hazardous operations such as soldering
and coil varnishing. The installation of an SS Jar auto polishing machine aimed to reduce
manual polishing operator dependency, enhance productivity and ensure safety while saving
costs. Refer to non-stat page 18-21 for more details. These operational improvements were
successful in enhancing workplace efficiency while reducing the risks associated with
hazardous operations.
Operational excellence : jgjf
The Company has initiated an operational excellence journey to improve
productivity, time work management and loss elimination. Key performance indices are
defined and the projects driving these metrics are in different stages of implementation.
The journey started by understanding the concept, tools and techniques to ensure that the
project-driven are sustainable to help deliver excellence.
Sustainability : [fj
The Company remained committed to designing and manufacturing products
that prioritise energy efficiency and sustainability. This commitment to sustainability
aligns with the Companys long-term vision of minimising its environmental footprint while
also delivering high-quality and innovative products to its customers. By encouraging
energy efficiency and sustainability in its products, the Company aims to contribute to a
cleaner and more sustainable future for all.
Financial performance
The Company endeavoured to maximise cash flow and enhance working
capital to ensure the business is financially stable. To accomplish this, it implemented
various initiatives, such as improving receivables and managing inventory days and
creditors. Continued efforts are directed towards inventory optimisations through
structure Sales and Operating Planning (SNOPs). Process-driven vendor evaluation and
development opened up alternative options for supply and services at effective cost and
payment terms. Balanced inventory norms enabled by strengthened demand forecast (both
immediate and 2+ months rollover) lead to a better supply plan, supplemented by timely
decision-making basis market trend, especially in Q4, 2023. Additional tie-up programmes
with banks providing a bouquet of facilities to dealers and distributors at competitive
rates enabled better operating capital for the Company. To further enhance its financials,
the Company improved its vendor connections through effective inventory management and
utilised common resources across functions. It also implemented pricing corrections to
improve retail margins and balanced its channel bifurcation to ensure the right proportion
of online and alternate channels.
As a result of these initiatives, the Company was able to optimise its
cash reserves and manage its working capital more effectively, which allowed it to move
away from a debt-oriented approach and increase profits while maintaining a stable
financial position.
The Companys gross revenue stood at H1,05,655.24 lakhs in contrast to
H95,985.86 lakhs in FY 2021-22. The EBITDA of the Company (Earnings Before Interest, Tax ,
Depreciation and Amortisation) was H10,311.18 lakhs in FY 2022-23 compared to H5,136.25
lakhs in FY 2021-22. The Company stated a PAT (Profit After Tax) of H5,166.58 in FY
2022-23 compared to H1,612.68 lakh in FY 2021-22. A summary of operating results is
covered in the Boards Report for ready reckoning.
Sales performance
By focusing more on innovative value engineering and the launch of new
products, along with assertive market expansion campaigns, rapid digital acceleration and
strong online customer engagement, the Company went through a major transformation in
2022-23. The Companys stellar sales performance across all product categories and sales
channels is a testament to its unparalleled customer service, which was acknowledged by
leading e-commerce companies for its industry-leading turn-around time. Efficient SNOP
helped the Company achieve excellent figures. By identifying market demand, the Company
was able to plan its backend manufacturing processes effectively, ensuring that the right
products were available at the right time, in the right quantity and at the right price.
In addition to this, strengthening the retail business while maintaining a significant
online presence helped the Company stay ahead of the curve and meet the changing needs of
customers. A robust SNOP process helped the Company align its sales and operations, reduce
costs, improve customer satisfaction and drive growth.
Product
This relates to the significant changes in the primary financial ratios
and the return on net worth of Company. Specifically, it entails providing a comprehensive
explanation of any substantial modifications, which are defined as alterations of 25% or
more when compared to the previous fiscal year, observed in these important financial
ratios.
(H in lakhs)
| Products |
FY 2022-23 |
FY 2021-22 |
| Kitchen Appliances |
776.54 |
715.12 |
| Cooker/ Cookware |
232.38 |
220.82 |
| Others |
47.62 |
23.91 |
| Total |
1,056.55 |
959.86 |
|
|
(H in lakhs) |
| Products |
FY 2022-23 |
FY 2021-22 |
| Net Sales |
1,05,655.24 |
95,985.86 |
| Finance Costs |
650.59 |
1,113.44 |
| Total Net Income |
5,063.69 |
1,637.52 |
| Long Term Borrowings |
Nil |
456.19 |
| Total Debt (as times of equity) |
0.02 |
0.23 |
| Short Term Borrowings |
Nil |
4,770.28 |
| Depreciation |
1,615.26 |
1,546.49 |
| Investments |
34.92 |
34.39 |
| Fixed Assets (Capital Expenditure) |
1,871.51 |
1,615.60 |
| EBITDA |
10,311.18 |
5,136.25 |
| PBT |
8,045.33 |
2,476.32 |
| PAT |
5,166.58 |
1,612.68 |
The use of advanced real-time inventory tracking technology has led to
more efficient and accurate management of inventory levels throughout the distribution
channel. This has enabled distributors to maintain optimal levels of stock and reduce the
risk of overstocking or stockouts. Additionally, the real-time tracking system has also
helped reduce outstanding debts owed to the Company. This is because the system provides
greater visibility into inventory levels and enables more accurate invoicing and payment
processing. By reducing the amount of outstanding debt, the Company can better manage its
cash flow and reduce financial risks. It has resulted in improved financial performance,
reduced financial risks and ensured better management of inventory levels.
Outlook
The Company is pursuing a progressive roadmap in its quest for
nationwide market expansion and exponential growth in the years ahead. Leveraging its
position as an integrated kitchen appliance manufacturer and its strong brand reputation,
the Company intends to target high-potential markets in the North and Western regions by
utilising the distribution and branding synergies gained from Crompton Greaves Consumer
Electricals Limited.
In addition to market expansion, the Company will prioritise
operational excellence as a key growth driver. With a focus on strengthening in-house
manufacturing, improving output and introducing automated cooker manufacturing, the
Company aims to enhance its production capabilities and achieve greater efficiencies. This
will be further facilitated by concentrating more on enhancing productivity, safety and
cost reduction.
The Company also aims to ramp up its service offerings by expanding the
service interventions, improving its Average Acquisition Cost and Turn Around Time,
implementing software and network enhancements, as well as improving spare parts
availability and after-sales support. This will enable the Company to deliver a seamless
customer experience, build customer loyalty and drive growth in the long run. The
Companys outlook for the upcoming financial year is marked by a commitment to excellence
across all aspects of its operations, from manufacturing to service delivery. With a
strategic focus on market expansion, operational excellence and service enhancement, the
Company is poised for significant growth and success in the years ahead.
Risk management
The Company has established a robust Risk Management Policy, framework,
and process to ensure the achievement of its strategic objectives and sustainable goals.
The process enables informed decision-making, through risk assessment and management at
various levels. Both Bottom-up and Top-down approaches are adopted covering the
organisation, and functions. The Company reviews the key risks identified by the business
and the status
of mitigation actions, to systematically address the risks, on an
ongoing basis.
The Board Risk Management Committee oversees the Companys Risk
Management Policy, Process, Structure and Risk mitigation mechanism. Audit Committee also
has additional oversight on Financial Risks and Controls. The Companys Internal
Management Audit team assures the Board of Directors of the effectiveness of the process.
Internal control systems
Comprehensive Internal Control Systems are in place both in the Company
and in the Management to safeguard and shield the Company from losses and ensure the
proper use of its assets. The fully integrated Enterprise Resource Planning (ERP) system,
with advanced AI software, provides senior management with data-driven insight to monitor
every aspect of the business in real-time and make speedier decisions. The Company
strictly adheres to all Accounting Standards and Guidelines prescribed for the maintenance
of books of account and the reporting of financial statements. The appointed independent
internal auditors monitor and report on the effectiveness of the internal control systems
of the various areas of operations. Key matters that are reported in the Internal Audit
are brought to the attention of the Audit Committee of the Board of Directors and
corrective measures are recommended and appropriate actions taken. The Internal Control
systems ensure the business operations function efficiently and that the applicable laws,
rules, regulations, and policies of the Company are followed in addition to safeguarding
the reliability of financial reporting.
Human resources
The Company firmly believes that its growth is predominantly attributed
to its human capital. In light of a dynamic operating environment, employees are a crucial
part of the Company for developing competencies, strategic planning, building up systems
and creating a growth-oriented organisational culture.
1,349 employees
As of March 31,2023
Becoming merit-driven from promoter-driven
The Company adopted an employee and stakeholder-first policy whereby it
prioritised a merit-driven culture over a promoter- driven culture. Its utilised synergies
from Crompton Greaves Consumer Electricals Limited to take inputs for its broader human
resource policy.
Enhancing employees trust
The Company implemented multiple measures in the previous financial
year to foster trust and confidence among its employees. The Company regularly conducted
Townhall meetings to provide assurance to its employees, as well as regular shop floor
visits, during which employees could converse directly with the management and get their
grievances addressed (if any). Monthly review meetings with functional heads were also
organised to ensure effective communication and understanding between management and
employees.
Employee benefits
To further augment employee satisfaction, the Company introduced
several new benefits, such as a group-term life insurance policy. Moreover, the Company
has taken steps to boost employee morale by introducing a new Rewards and Recognition
policy, whereby 280 Rewards and Recognitions were awarded previous year.
Employee health and wellness
The Company worked diligently to ensure employee health and wellness.
Several wellness programmes for women were conducted. 800 women participated last year in
awareness campaigns related to menstrual health, breast cancer, diabetes and heart care.
Talent acquisition
Talent acquisition initiatives included key campus identification and
leveraging the Crompton Greaves Consumer Electricals Limited brand to attract the right
talent. The Company also hired new talent for critical roles, shifting away from a
promoter- driven approach.
Diversity
The Company also put in concerted efforts to encourage diversity,
following a department-wise approach, resulting in a record 35% female workforce and 24%
excluding off roll employees. Womens Day celebrations were also held. The Company has
also implemented initiatives to promote learning and development, such as conducting FGDs
with functional heads for skill mapping and identifying the right individuals to solve
problems using scientific approaches.
Capability building
Capability building was another major focus area for the Company this
year. Several cross-functional teams were established and regular interactions between the
various departments were held to encourage inter-departmental knowledge transfer. The
Company has introduced a databased approach to problem-solving, utilising the 7QC tool
principles to enhance problem-solving and execution capabilities.
As a result of its policies and practices, the Company has achieved
unprecedented levels of productivity and performance, with teams pushing themselves beyond
their limits in the pursuit of new challenges and milestones
Details of significant changes in the key financial ratios and return
on net worth
| Particulars |
FY 2022-2023 |
FY 2021-2022 |
Change (%) |
Explanation |
| Debtors Turnover Ratio |
9.76 |
11.49 |
-15.02% |
- |
| Inventory Turnover Ratio |
3.99 |
3.30 |
20.80% |
- |
| Interest Coverage Ratio |
15.85 |
4.61 |
243.58% |
Improved Operating profit and reduction in borrowings |
| Current Ratio |
1.64 |
1.25 |
31.01% |
Improved cash generation from operations, incremental
debtors, reduction in inventory and trade payables led to improved current ratio. |
| Debt Equity Ratio (%) |
0.02 |
0.23 |
-92.39% |
Improved self generated funds leading to non utilisation of
debt. |
| Operating Profit Margin (%) |
9.14 |
5.84 |
56.52% |
Improved operating profit contributed by cost control
measures in material and direct cost under project munnetram and other initiatives |
| Net profit Margin (%) |
4.89 |
1.68 |
191.05% |
Improved operating profit as per measures stated above |
| Return on Net worth |
19.90 |
7.00 |
182.40% |
Improved profitability and reduced debt |
Review of operations
The Company demonstrated sheer resilience with a commendable
performance throughout the year, despite the challenging economic environment, with the
adverse effects of the Russia-Ukraine war contributing to the volatility in raw material
and energy prices.
Cautionary statement
In accordance with the relevant laws and regulations, certain
statements in the Management Discussion and Analysis Report relating to the Companys
goals, forecasts, outlook, expectations and estimates may be considered forward-looking
statements. Actual outcomes could differ from these predictions, expectations and other
statements, whether explicit or implicit. The operations of the Company could
significantly change depending on a number of variables. These include environmental
factors, macroeconomic factors that affect supply and demand, Governmental policies and
taxation, natural disasters and other factors that the Company has no direct control over.
+91-9892691696
