Today's Top Gainer
Note:Top Gainer - Nifty 50 More
INVESTMENT & PRECISION CASTING LIMITED, is wel- known name since its establishment from 1975, within India, and making its presence in Global market by continuous developments to provide valuable services to its clients.
Along with its current line of business in automobiles ancillary products, company is also focusing on Aerospace, Defense and Medical products and equipments, for which company has continued to mark his presence within India and across Globe.
A. INDUSTRY STRUCTURE & DEVELOPMENT:
The Indian automotive industry has shown a mix trend under different segment of vehicles during the year. OPPORTUNITIES, THREATS, RISKS & CONCERNS:
The Company has been able to maintain market share from automobile sector customers with the help of development of new customers/automotive parts which has improved order position of the company. The Company is undergoing need based expansion for increase in production during the financial year 2019-2020. The export business is also helping the company to some extent. The company has continued its focus on the development of new business in aero space, defense sector, with the help of adding vacuum melting furnace which will help increase volume of business of the company.
In future, electric car will come in the market, which will affect companys market share in automobile sector. However, The Company has developed business with non-auto customers, Export, Aerospace, etc. which has improved the companys position in the market of investment casting.
III. Risks & Concerns:
The prevailing sluggish market condition of automobile sector and uncertain volatile trend of increase/decrease in the cost of inputs, etc. has effect on the operational manufacturing cost of the Company. Also, the frequent and uncontrolled increase in fuel cost has also affected automotive sector largely. All these factors will affect the business and margins of the company.
Due to the present economy situation, currently overall market is facing slowdown effect as compared to last couple of years for I&PCL. However, we also see good business potential from the Export market in coming years, as we are targeting to mark our presence in export markets by participating in various exhibitions in India as well as Internationally as well.
C. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The Company has in place adequate systems of internal control and documented procedures covering all financial and operating functions. These have been designed to provide reasonable assurance with regard to maintaining proper accounting controls, monitoring economy and efficiency of operations, protecting assets from unauthorised use or losses, and ensuring reliability of financial and operational information.
An Audit Committee of the Board of Directors comprising of Independent Directors and Whole Time Directors, which is functional from 2005-06 Financial Year, has reviewed regularly the audit plans, significant audit findings, adequacy of internal controls as well as compliance with Accounting Standards.
D. FINANCIAL PERFORMANCE:
Turnover (sales and other income from operations), increased by over 10 % from Rs.10,804.41 Lacs in 2017- 18 to Rs.11,962.86 Lacs in 2018-19.
Expenditure increased by over 14 % from Rs.9,602.75 Lacs 2017-18 to Rs. 11,002.29 Lacs 2018-19. During the year finance costs and depreciation cost increased from Rs. 924.30 Lacs in 2017-18 to Rs.1,128.15 Lacs 2018- 19.
Profit before depreciation, finance costs and tax decreased from Rs. 2,125.95 Lacs 2017-18 to Rs. 2,088.71 Lacs 2018-19.
The Companys Profit before Tax (PBT) decreased from Rs. 1201.65 Lacs to Rs. 960.57 Lacs.
E. HUMAN RESOURCES:
In line with the companys philosophy and strategic focus on human resource (HR) development, the business has been placing much emphasis on people development, engagement and building leadership for the future. The business has been continuously focusing on the attraction, retention and engagement of talent, the prime mover of success for the business. This helps to meet the evolving complexities and challenges which company faces.
F. CAUTIONARY STATEMENT:
Statement in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be "forward looking statements" within the meaning of applicabl e securities laws and regulations. Actual results could differ materially from those expressed or implied important factors that could make a difference to the Companys operations include, among others, economic conditions affecting demand/supply and price conditions in the domestic and overseas markets, change in the Government regulations, tax laws and other statues and incidental factors.