innovators Management discussions

INDUSTRIAL STRUCTURE AND DEVELOPMENT

The Global Facade Market is projected to grow with high CAGR in near future. With the growing investments in research and development, the facade market has undergone a number of technological advancements and changes, especially those related to resistance to extreme weather conditions, durability, waterproofing and permitting The architecture and construction industries are also carrying out major R & D operations to develop sustainable and eco-friendly facades which absorb solar energy, creating a new source of energy generation in residential and commercial buildings. These eco-friendly facades are expected to drive the facade market in the coming years as they are seeing increased demand from prospective consumers.

FUTURE OUTLOOK, OPPORTUNITIES & THREATS

Indian facade and fenestration industry is directly linked to the construction industrys performance. The improved market sentiments during FY 2022-23 as compared to FY 2021-22, shows the remarkable growth trends. This has also been witnessed in the companys financial performance for FY 2022-23 and its current order book position. Further, aggressive and organized efforts on the part of manufacturers and processors are expected to achieve higher levels of awareness among glass specifies and users. Constant technical innovations by manufacturers are keeping customers constantly interested in glass and glass products. In the next few years, the Indian architectural glass market will move to much higher levels. This ever-growing popularity of glass as a material, will ensure growth. Also, the Company is now fully equipped and successfully entered into the diversified segment of facade products being retail window, clean room panel & fire doors.

FINANCIAL PERFORMANCE

(Rs. In Lakhs)

	Standalone		Consolidated
Particulars	FY 2023-23	FY 2022-22	FY 2023-23	FY 2022-22
Revenue from Operations	18116.58	8923.63	18116.58	8923.63
Other Income	92.88	142.00	93.03	142.81
Total Revenue	18209.47	9,065.63	18209.62	9066.44
EBITDA	1911.18	1,193.64	1908.76	1191.47
Finance Cost	641.50	451.66	641.50	451.66
Depreciation	294.99	610.82	294.99	610.82
Profit Before Exceptional Items and Tax	974.68	131.16	972.26	128.99
Less: Exceptional Items	-	-	-	-
Profit Before Tax	974.68	131.16	972.26	128.99
Tax Expenses (Current Tax & Deferred Tax)	(130.13)	(31.84)	(130.13)	(30.90)
Profit After Tax	844.55	163.01	842.13	159.89

A. Revenue from Operations

During FY 2022-23, the Company has reported total revenues of Rs. 18,116.58 lakhs (PY Rs. 8,923.63 lakhs). A growth of around 103 %

B. EBIDTA (Before Exceptional Item)

EBIDTA for the current financial year was Rs. 1911.18 lakhs (PY Rs. 1193.64 lakhs).

C. Net Margin / Profit After Tax

Profit after Tax to Rs. 844.55 lakhs in FY 2022-23 as compared to Rs. 163.01 lakhs in previous financial year. Net Margin Ratio (Net profit after tax to turnover) in FY 2022-23 is 4.66 % against 1.83 % in FY 2021-22.

D. Debtors Turnover

Debtors Turnover Ratio in FY 2022-23 is 6.40 times against 3.40 times in FY 2021-22.

E. Return on Net Worth

Return on Net Worth in FY 2022-23 is 7.84 % against 1.59 % in FY 2021-22

SEGMENT-WISE OR PRODUCT WISE PERFORMANCE

The Company is mainly engaged in the business of "design, engineering, fabrication, supply and installation of facade systems". The overall performance of the Company is sum of all the project under execution. Each Project is executed as a Work Contract over a period of project duration. All projects varies in terms of their nature, period, and their profitability. Hence, as such there are no separate segment-wise or product-wise performance.

RISK AND CONCERNS

The exercise for evaluating the potential risks for the organizationis closely monitored by the Management. All the identified risks have been classified with respect to their seriousness and probabilities risks getting materialized 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.

INTERNAL CONTROL SYSTEM & ADEQUACY

System of Internal Controls adopted by management team ensures that all the assets are safeguarded from the loss, damage or disposition. Also, the Audit Committee monitors financial statement to ensure that the transactions are adequately authorized and recorded, and that they are reported correctly. Management Team available especially for the Companysdesigning,production activities andinstallation is highly skilled and experienced, that at every stage from availability of quality of raw materials till the outcome of production, they provide their expertise to such an extent that the Companys achieved their due importance in the market and consistently maintained superior quality.

HUMAN RESOURCE

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 continuous improvement path with an ultimate aim to add value to their intellectual and knowledge resources. The key focus is to attract, retain and develop talent as a resource through rewards mechanism, performance evaluation and harmonious & constructive working climate. As on March 31, 2023 the Company had 328 permanent employees on the payroll.

CAUTIONARY STATEMENT

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.