keltech energies ltd Management discussions

Management Discussion and analysis report/Operations reports of Companys performance):

The operations for the year 2022-23 have resulted in a net profit of Rs.1104.73 Lakhs after charging depreciation, interest, tax, and comprehensive income as against Rs.661.98 Lakhs for the corresponding period of the previous year.

A. Explosives Division:

The sale of Explosives for the year under review was 61,603 MT as against 52,160 MT for the corresponding period of the previous year. The increase was mainly accepting orders in Public Sector Undertakings like Western Coalfields Limited and Singareni Collieries Co. Ltd and also enhancing customer base in dealers segment market which has added to growth in volumes.

During the year, the turnover in regard to traded goods, services, and export of finished goods in Explosives sector was same as compared to the corresponding period of the previous year.

The sale of Detonating Fuse during the year under review was 30 Million Meters as against 23 Million Meters for the corresponding period of the previous year. The sale of Other Accessories during the year under review was 661 MT as against 226 MT for the corresponding period of the previous year.The increase was due to enhancing customer base and Export Orders.

B. Perlite Division:

The sale of Perlite and Perlite based products for the year under review was 16,123 MT as against 13,602 MT for the corresponding period of the previous year, which resulted in increase of 19%. The increase in sales was mainly due to increase in Filter-Aid markets.

3. Basic Earnings Per Share:

The Companys Basic Earnings per share stood at INR.119.22 (Previous year- INR 66.31).

4. Risk Management:

During the Financial Year under review, a detailed exercise on Business Risk Management was carried out covering the entire spectrum of business operations and the Board has been informed about the risk assessment and minimization procedures. Business risk evaluation and management is an ongoing process with the Company. There is no risk identified which in the opinion of the Board may threaten the existence of the Company.

5. Dividend:

The Directors have recommended a dividend of Rs.1.50 per share (15 %) of Rs.10/- (Face Value) on the paid-up equity capital of the Company.

6. Business Focus and Highlights:

A. EXPLOSIVES DIVISION:

The Companys strategy was to enhance its base of operations in Coal Sector and other sector of business by participating in Public Sector Undertakings tenders at aggressive pricing and to achieve the same.

Your companys long-term strategy of providing quality products and robust internal controls were critical in helping us to overcome the obstacles and emerge stronger.

Your companies Research and development team have introduced new products as per the requirement of the customers. These products helped the company to increase the volumes. These volumes helped plants running full capacities. We could supply to many regions of the country by expanding its Geographical reach.

B. PERLITE DIVISION:

Diversification of Perlite and Perlite based Products in other markets like Construction and Pharma markets. New Product developments under Horticulture market.

We have expanded our horizon by going digital. Your companys products for horticulture are available now via. Ecommerce channels like Amazon and Flipkart.

C. INDUSTRIAL RELATIONS:

The industrial relations during the year under review were cordial and there were no industrial disputes.

D. OUTLOOK FOR 2023-24:

During the current financial year 2023-24, on account of stiff competition on price, sale of Explosives is expected to be under pressure. Major PSUs like M/s.Coal India Ltd, Singreni Collieries Co Ltd have understood the difficulties faced by Explosives manufacturers and have resolved the same. These steps shall be a slight respite in your companys operations. Further your Company is striving to consolidate its presence in the Explosives accessories and Perlite and Perlite based Products business. The performance of infrastructure Industry in the Country will be crucial for continued growth of Companys business.

Your Company will continue to make all efforts for optimizing the overall performance.

E. CAUTIONARY STATEMENT:

The statements, expressions, information given in this Management Discussions and Analysis Report describing the Companys objectives, projections, estimates, expectations, or predictions may be deemed to be "forward looking statements". Actual results might be substantially or materially different from those expressed or implied. Important developments that could affect the Companys operations included demand supply conditions, changes in Government, global economic scenario, and such other developments different from Companys comprehension.