Today's Top Gainer
Note:Top Gainer - Nifty 50 More
A. INDUSTRY STRUCTURE AND DEVELOPMENT
The year under review was challenging due to various variables which has affected the segment of the business in which your Company is engaged. The finished product prices were remain under pressure as well as demand for the products was slow which in turn has resulted into lower turnover of Rs. 6807.36 Lacs for the year ended as against that of Rs. 7374.14 Lacs for the previous year. In spite of decrease in turnover the business operations has shown increase in EBITDA by 28% due to improved margins and cost control measures undertaken by the management. Also the Profit after Tax was higher by 29% and recoded at Rs. 432.79 Lacs as against that of Rs. 336.33 Lacs.
Your Companys current product includes Pthalocyanine Blue range of products like CPC Blue, Pigment Alpha Blues and Pigment Beta Blue. All these products are having wide applications for various industrial purposes with good export demands. The Company is working out plans to spread its customer base as well as to introduce new grades of the products for increasing turnover and profitability. Also the Company is successfully in expanding export base and new clienteles.
B. OPPORTUNITIES, THREATS, RISK AND CONCERNS
Your Company has gained its position in the domestic as well as international markets due to its quality products and continuous improvements which in turn has helped us to develop and maintain long term relationship with the clients and further supported us to spot for the new opportunities. This systematic approach has delivered favorable results for the Company to grow at the steady rate by creating sustainable demand from satisfied customer base and repetitive orders from them and in turn increased profitability.
Going forward, your Company considers challenges and threats mainly on account of fluctuation in the prices of various raw materials which are linked to world petro products and commodity prices, foreign exchange fluctuations, environmental regulations, and general global demand situation. Availability of skilled manpower and contract work force would be another set of challenges to be managed carefully for the growth of the Company.
Your Company has identified the major thrust areas of sensitive business factors to concentrate on, which it believes to be critical for achievement of organizational goals. A well-defined structure has been laid down to assess, monitor and mitigate risk associated with these areas on a continuous basis.
C. OUTLOOKS FOR 2019-20
The management of the Company is concentrating on cost controls at all level of operations and also increase the volume of the business with a view to increase the turnover and profit margins. The Company has already incurred significant amount of capital expenditure on modernization of plant and factory building which will result in overall efficiency improvement, cost savings, increased tonnage of production. All these factors will drive the growth during coming years for the benefits of the Company. Barring unforeseen circumstances, the management is confident of delivering improved results during the coming years. The management is also exploring various expansion plans and opportunities to diversify for creating value chain of business.
D. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
We have a strong integrated internal control system which is deemed to be adequate considering the nature and scale of our class of business.
E. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO THE OPERATIONAL PERFORMANCE
During the year under review, your Company has achieved satisfactory financial results and details are provided in directors report. The Company was also successful in export business during the year ended by achieving export turnover of Rs. 29.34 Crores.
F. MATERIAL DEVELOPMENTS ON HUMAN RESOURCES
Human Resource programs and initiatives in the Company are aligned to meet the future business plans and needs. Your Company believes in investing in people to develop and expand their capability. The Company has been able to create a favorable work environment that motivates performance, customer focus and innovation. The Companys strategies are based, inter alia, on processes of continuous learning and improvements.
|By order of the Board of Directors|
|For ISHAN DYES & CHEMICALS LIMITED|
|12th August, 2019||Piyush N. Patel|
|Ahmedabad||Chairman & Managing Director|