INDUSTRY STRUCTURE AND DEVELOPMENTS
Changing household and commercial lifestyles, availability of
economical electricity, rising concerns regarding eco-friendly and energy efficient
appliances are expected to be the key drivers of the kitchen appliances market size.
Development of e-commerce distribution channels, emergence of Information technology and
other smart technologies will support further the overall kitchen appliances market share.
Environmental concerns regarding rising pollution and global warming
has led to the development of appliances that are energy efficient. Technological
advancements in accordance to this trend may help manufacturers garner huge gains over the
forecast timeline. Moreover, regulatory bodies are expected to entertain such portfolio in
the industry and may boost the current growth rate which is corroborated by the measures
taken by exchequer with regard to MSME enterprises, start-ups through various subsidy
schemes.
The company is in the business of production, manufacturing and dealing
in Kitchen appliances and home appliances which is one such sector within the overall
household segment that has been in the limelight in recent past. Kitchen appliances are
gaining popularity due to the rise in disposable income and changing lifestyles of people,
which in turn is narrowing the price gap between similar consumer products offered by
different companies. In addition to this, technological advancements in appliances have
also catalyzed the growth of kitchen appliances market. Easy to operate and safely
functional appliances are the need of the hour, which has led to the development of smart,
standardized and efficient appliances. All products of the Company are ISI certified and
are sophisticated to bring the age-old domestic appliances to a new height. The legendary
products of the Company like BLOWHOT, ONLINE reflect the sophistication of the
products and the reliability as well as exquisite look due to modernization of the design
of the product.
Discussion on financial performance with respect to
operational performance:
| Sr. No. |
Particulars |
2022-23 |
2021-22 |
| 1. |
Net Sales from operations |
42,04,73,040 |
28,75,51,461 |
| 2. |
Other Income |
53,80,474 |
11,30,096 |
| 3. |
Sub-total |
42,58,53,514 |
28,86,81,557 |
| 4. |
Total Expenditure (Before interest and
Depreciation) |
39,48,96,069 |
25,90,07,837 |
| 5. |
Operating Profit (EBIDTA) |
3,09,57,445 |
2,98,08,814 |
| 6. |
Operating Margin % |
7.36% |
10.37% |
| 7. |
Profit / (Loss) After Tax |
1,49,84,550 |
1,66,31,861 |
| 8. |
Return on Capital Employed % (EBIT) |
23.67% |
26.88% |
| 9. |
No. of Months Receivables (Receivables /
Sales X 12) |
2.46 |
2.11 |
| 10. |
Current Ratio (Current Assets / Current
Liabilities) |
1.55 |
1.72 |
| 11. |
Borrowings : Equity Ratio (TL/Equity) |
1.02 |
0.78 |
| 12. |
Production (Nos.) :- |
|
|
|
(A) Gas Geyser |
37,268 |
50,453 |
|
(B) LPG Glass Top |
74,685 |
42,935 |
|
(C) Chimney |
24,078 |
17,839 |
Companys revenue from operations for the year 2022-23 was Rs.
42,04,73,040/-, reflecting an increase of 46.23% over the previous year. The
Companys profit before exceptional items and tax during the year ended 31st March
2023 was Rs. 2,02,20,453/-, Fell by 10.77%.
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTIZATION (EBIDTA)
During the fiscal 2022-23, the Company reported an EBIDTA of Rs.
3,09,57,445/- when compared to the previous years figure of Rs. 2,98,08,814/-.
PROFIT BEFORE TAX (PBT)
PBT was at Rs. 2,02,20,453/- in FY 2023, compared with
previous years Rs. 2,26,61,184/-.
PROFIT AFTER TAX (PAT)
PAT stood at Rs. 1,49,84,550/- in FY-2023 as compared to
Rs. 1,66,31,861/- in FY- 2022.
EARNINGS PER SHARE (EPS)
EPS in the fiscal 2022-23 stood at Rs. 2.79/- per share
compared to EPS of Rs. 3.41 per share in fiscal 2021-22.
OPPORTUNITIES AND THREATS
Demand for smart kitchen appliances has increased over the past few
years. Technological advancements have influenced the demand for up gradation of kitchen
appliances, thereby enabling smooth and reliable productivity while cooking. The Company
has been adopting the strategy of continuously offering innovative, newer and improved
products as well as marketing strategies to stay above competition whether organized or
unorganized as a result of this the newly developed chimney has shown the growth in demand
and has secured a status amongst the other established brands of same kind and quality
with the most competitive pricing factor. These facts are supporting practically our
belief of catching and then holding the pace of growth in our segment of products, as also
revealed by the current year performance. Due to some Covid-19 pandemic effects still
persisting the availability of raw material from China and difficulties relating to
skilled labour availability has certainly hit the productivity but held inventory level
coupled with other benefits given by the state government like deferment of Power bills
and other payments thereby brought the relaxation in the cash flow. The scheme of
sacrificing the LPG connection subsidy has also resulted into the increased demand of the
LPG stove, our core product. Gas Geyser along with small size electric geyser is also
becoming a necessity now a days and is also becoming a promising product. The Single
threat company foresees, is the political conditions of China which may cause delay in
import of components and volatility in foreign exchange rates and also a radical chance of
product itself getting obsolete due to certain government policy. The company is in the
process of making and implementing the strategies to capitalize available opportunities
and minimizing the threats to ladder products across capacities, formats and prices. The
company will put its every effort to maximize the internal accruals by way of input tax
credit available in the GST law and by optimizing the product common costs so as to enable
it to sustain profitably in the market.
SEGMENT WISE PERFORMANCE/PRODUCT WISE
PERFORMANCE
The company has only one segment of Home Appliances and
the products considered as part of the segment are, LPG
stoves, Gas Hobs, Gas geysers, Water Heaters and Kitchen Chimneys. The
company is hopeful that through a combination of powerful marketing strategies, innovative
new products and market development and expansion activities, it would increase its share
in the domestic market of most of its products. The newly added organized customers to the
chain of company products due to GST regime are very promising for the segmental growth.
After the merger gets officially approved, the proposed change in the name from Gorani
Industries Limited to Blow hot Kitchen Appliances Limited will also have its own flavors
towards the growth of demand as it is the registered brand name.
OUTLOOK
The Indian kitchen appliances market grew at a healthy double-digit
rate over the last decade, driven by a host of factors such as increasing rural
penetration, improved disposable incomes and a revolution in lifestyle standards,
purchasing preferences and buying trends. In the last couple of years, availability of our
products on the e-commerce platform has shown anattractive growth and looking in to the
current scenario of people purchasing products directly through such platforms the company
sees the jump in the turnover.
However, in the last four years, the high growth of the past tapered
off thus witnessing a sobering effect in the kitchen appliances industry. The key growth
challenge encountered by the industry primarily came from the consumer sentiment and
stagnation of incomes.
RISK AND CONCERNS
Our Company has developed and implemented a Risk Management Policy
which includes identification of elements of risk, if any, which in the opinion of the
Board, may threaten the existence of the Company.
Our Company continuously monitors and revisits the risks associated
with its business. The company has review mechanism of risks at regular intervals. The
management of the Company has identified some of the major areas in relation to business
strategy, operations and transactions, statutory/legal compliance, financial reporting,
information technology system and overall internal control framework. With improved
efficiencies and economies of scale your Company is hopeful of maintaining a healthy
margin and return on capital employed. Efficient working capital/ asset management, cash
generation and robust stewardship will continue to be our focus areas as in the past.
Risks identified through our risk management processes are prioritized
and, depending on the probability and severity of the risk. We have general response
strategies for managing risks, which categorize risks according to whether the company
will avoid, transfer, reduce or accept the risk.
INTERNAL CONTROL
The Company and the Management has adequate internal control systems in
place to safeguard and shield the Company from losses and, unofficial use or deposition of
assets. This also ensures that the Companys assets and interests are carefully
protected and all the transactions are appropriately authorized, recorded and presented to
the management. The Company always adheres to prescribed guidelines and follows all
Accounting Standards prescribed for maintenance of books of accounts and reporting of
financial statements. The appointed internal auditor 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 notice of the Audit
Committee of the Board of Directors and corrective measures are recommended and
appropriate actions are taken. The Internal Control systems ensure the business operations
function efficiently and the applicable laws, rules, regulations, policies of the Company
are followed, in addition to safeguarding the reliability of financial reporting.
HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT
The Company fully values the Human Capital and continued to have the
cordial and harmonious relations with its employees. The company focuses on training of
employees on a continuous basis. The Company considers the quality of its human resources
to be most important asset and constantly endeavors to attract and recruit best possible
talent. The company maintains a strong business linkage to all human resource and
initiatives.
The Unit of the Company has 174 non-management employees. The overall
relations with these employees continued to be cordial and harmonious during the year
2022-23. As on 31st March, 2023, the employee strength of the Company was 184as compared
to 189 as on 31st March, 2022.
SIGNIFICANT CHANGES
Details of significant changes in key financial ratios, along
with detailed explanations therefor, including:
i. Debtors Turnover 6.14
ii. Inventory Turnover 2.71 iii. Interest Coverage Ratio 4.16 iv.
Current Ratio 1.55 v. Debt Equity Ratio 1.02 vi. Operating Profit Margin (%) 7.36% vii.
Net Profit Margin (%) 3.56%
viii. Details of any change in Return on Net Worth as compared to the
immediately previous financial year along with a detailed explanation thereof.-
Disclosure of Accounting Treatment:
Being the listed public limited company, the Indian Accounting
Standards (IND-AS)are applicable on the company and the standards as on date notified were
applied while preparing the financial statements.
Cautionary Statement
Statements in the Management Discussion and Analysis Report describing
the Companys objectives, projections, estimates, expectations, predictions & contains
forward looking statements within the meaning of applicable rules and regulations. It
contains forward looking statements which are made in good faith based on the information
available at the time of its approval. It is believed that the expectations reflected in
these statements are reasonable but they may be affected by a number of risks and
uncertainties that are inherent in any forward looking statement which could cause actual
results to differ materially from those currently anticipated.
By Order of the Board
for Gorani Industries Limited
|
Sd/- |
| Date: 23/8/2023 |
Nakul Gorani |
| Place: Indore |
(Holding DIN : 06543317) |
|
(Chairman cum Whole Time Director) |
Regd. Office:
Plot No. 32-33, Sector F, Sanwer Road, Industrial Area, Indore-452015
(M.P.)
+91-9892691696
