Innovators Facade Systems Ltd Management Discussions.


Sustainable and eco-friendly facade developments focused on energy conservation and reduced dependency on fossil fuels are the new imperative of the rapidly growing facade and fenestration industry.

The global facade market is expected to reach US$ 342.94 billion by 2025. Facade is an attractive exterior wall or face of buildings that comprise design elements such as deliberate placement of doors and windows. Global facade industry is expected to grow at a significant CAGR in the upcoming period as the scope and its applications are rising enormously across the globe.

The factors that are playing a major role in the growth of facade market are a high investment in R&D of the construction and architecture industries, developing eco-friendly bio-climatic facades, rapid urbanization and increasing number of renovation projects.

Rise in the number of commercial high rise, such as Corporate Parks, IT Parks and Industrial hubs is expected to act as a stimuli to growth.

As per industry estimates as of December 2018, the current market size of the Facade industry in India is Rs. 15,000 Cr and witnessed an annual growth rate of 20% due to rapid urbanization and increased demand for office and other high-end glass facade buildings.

( Rs. in Lakhs.)



FY 2018-19 FY 2017-18 FY 2018-19 FY 2017-18
Revenue from Operations 15,708.58 15,417.46 15,708.58 15,417.46
Other Income 167.49 100.98 167.49 100.98
Total Revenue 15,876.07 15,518.44 15,876.07 15,518.44
EBITDA 2,249.65 2,261.43 2,243.37 2,260.85
Finance Cost 503.95 870.52 503.95 871.53
Depreciation 236.98 220.88 236.98 220.88
Profit Before Exceptional 1,508.72 1,170.02 1,502.44 1,168.43
Items and Tax
Less: Exceptional Items 738.70 738.70
Profit Before Tax 770.02 1,170.02 763.74 1,168.44
Tax Expense 298.53 377.14 298.53 376.54
Profit After Tax 471.48 792.89 465.21 791.90

We have undergone a transformational journey over the last few years, undertaking various business strengthening initiatives that have translated in to significant improvement in our financial and operational parameters.

During Financial Year 2018-19, the Company has reported revenues of Rs. 15,708.58 lakhs as compared to Rs. 15,417.46 lakhs in the previous Financial Year. EBIDTA (before exceptional item) for the current Financial Year was Rs. 2,249.65 lakhs as compared to Rs. 2,261.43 lakhs in the previous Financial Year. Profit After Tax is Rs. 471.48 lakhs in Financial Year 2019 as compared to Rs. 792.89 lakhs in previous Financial Year. The decrease in profit after tax of the Company was on account of exceptional items amounting to Rs. 738.70 lakhs. The Earning Per Share (Basic & Diluted) for FY 2018-19 is Rs. 2.62.


During the year under review, the Company has successfully completed the IPO with very good response and has got listed its equity shares on the SME Platform of BSE Stock Exchange, w.e.f.

24th May, 2018.

Fund raised through IPO has been utilised effectively in accordance with the purpose as stated in the object clause of the prospectus. With investments in plant & machinery and factory building, we have been able to expand our manufacturing facility with increased output and efficiency. Further, the construction work on the factory premises is still in process as on the reporting date and is expected to complete during current financial year 2019-20. Working capital position of the Company has positively strengthened after infusion of IPO proceeds and is expected to improve further. Also, the successful completion of IPO and an entry into the capital market has helped the

Company in enhancing its brand image in public at large and is also serving as an added advantage in grabbing market opportunities.


The key factor that is expected to boost the facade industry is the need to reduce heating and air conditioning costs and achieve energy efficiency. It is expected that this trend towards cost reduction will generate sustainable products during the forecast period.

The popularity of green buildings requires high transparency glass that allows the passage of light and maintains resistance to heat. It is expected that the forecast period will witness the application of high performance facades, energy saving and solar control that contribute to greater economic benefits and eco-sustainability. This has led to the demand for triple-glazed facades compared to double-glazed structures.

We believe that construction sector shall observe a rapid growth in the coming years on account of changing lifestyle and growth in housing finance facilities. Further we believe that the infrastructure sector in India will also undergo major changes due to government plans and consumer demand. We intend to capitalise on such growth opportunities by supplying products to large construction contractors and sufficing their requirement. We believe that we are well positioned to cater to demand of such sector with our product ranges and competitive pricing structure.


The exercise for evaluating the potential risks for the organization is closely monitored by the Management. All the identified risks have been classified with respect to their seriousness and probabilities of such risks getting materialised have also been ascertained. In formulating corporate strategies, these risks are duly considered and counter measures are adopted.

Facade industry is capital intensive industry in nature with gestation period that varies from project to project. Due to high dependency of the industry on the real estate sector, there are certain inherent risks in both the internal as well as external environment. Company monitors the external environment & manages the internal environment to mitigate the risks.


System of Internal Controls adopted by management team ensures that all the assets are safeguarded from loss, damage or disposition. Also, the Audit Committee monitors financial statement to ensure that the transactions are adequately authorised and recorded, and that they are reported correctly.

Management team available especially for the Companys designing, production and installation activities is highly skilled and experienced, that at every stage from availability of quality of raw till materials the outcome of production, they provide their expertise to such an extent that the Companys products have achieved their due importance in the market and consistently maintained superior quality.


Your company gives utmost importance to Human Resource. It considers Human Resource as Human Capital and believes in development of Human Resource. Over the years, your company has developed an environment, which fosters excellence in performance by empowering its people, who are always on the path of continuous improvement with an ultimate aim to add value to their intellectual and knowledge resource. The key focus is to attract, retain and develop talent as a resource through reward mechanism, performance evaluation and harmonious & constructive working climate. During the year 2018-19, the Company had 224 permanent employees on the payroll.


Statements in this report describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable laws and regulations. The actual results may differ materially from those expressed in this statement because of many factors like economic condition, availability of labour, price conditions, domestic and international market, changes in Government policies, tax regime, etc. The Company assumes no responsibility to publicly amend, modify or revise any statement on basis of any development, information and event.