industrial prudential investment company ltd share price Management discussions

Global Economy

Global growth is slowing sharply in the face of elevated inflation, higher interest rates, reduced investment, and disruptions caused by Russia?s invasion of Ukraine, according to the World Bank?s latest Global Economic Prospects report.

The global economy is projected to grow by 1.7% in 2023 and 2.7% in 2024. The sharp downturn in growth is expected to be widespread, with forecasts in 2023 revised down for 95% of advanced economies and nearly 70% of emerging market and developing economies. By the end of 2023, GDP levels in emerging and developing economies will be roughly 6% below levels expected before pandemic. Although global inflation is expected to moderate, it will remain above pre-pandemic levels.

Indian Economy

India did well compared to its global peers during the last financial year and has become one of the fastest growing economies in the world. With GDP crossing USD 3 trillion in 2022-23, it has become 5^th largest economy of the world. The Indian government has set an ambitious target to become a USD 5 trillion economy by 2025. All the parameters are indicating exponential growth in the next few years. With strong growth in exports for last two consecutive years, higher credit disbursals by banks, balanced inflation, huge skilled manpower and with the Make in India initiative, the CAPEX cycle has just begun in India and is likely to continue. The Indian economy is estimated to grow over 6% for the year ending March 2023 and is likely to continue with 6.5% growth as projected by RBI.

All the above parameters indicate values in the Indian companies to grow better than they did in the past. Broad based markets are performing better and the valuation of the companies are looking attractive in line with their growth potential. However, certain sectors can be impacted by the lower global demand due to ongoing slow down.

Financial Performance

The Company, being an NBFC, is engaged primarily in investments in equity shares for long-term value creation for the stakeholders. The financial performance of the Company is dependent on that of the stock market but steps are being taken to invest in stocks that have long-term sustainable growth potential in the current scenario.

The top holding of the Company, KSB Limited, has posted a very good financial performance during the year under review and has seen substantial appreciation in its stock price.

The Company continues to remain invested in select companies that are continuously performing well. Steps are being taken to make small adjustments in the company?s stock portfolio to align it with the current global economic trends under expert advice.

Opportunities, Threats, Risks and Concerns

The Indian government has strategic initiatives in place to promote Make in India, Atmanirbhar Bharat and national infrastructure and this is likely to be a great opportunity for Indian companies for higher growth and appreciation in their values. The long-term continuance of the ongoing war between Russia and Ukraine will cause disturbance and impact growth in the long term. However, internal risks continue to be inflation, higher interest rates and demand slow down.

Disclaimer

The information and opinion expressed in this section of the Annual Report contains statements, which are the view of Companies management at the time of its preparation and are intended for shareholders communications. The above statements or contain are not intended to induce any one to buy the share of the company and the Company & its management shall not be held liable for any loss, which may arise as a result of any action taken on the basis of the information contained herein.

	For and on behalf of the Board of Directors
Kolkata
Date: 18th May, 2023
	GAURAV SWARUP
	Chairman & Managing Director