lohia corp ltd Management discussions


LOHIA STARLINGER LIMITED ANNUAL REPORT 2010-2011 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL RESULTS (Rs. in crore) 2010-11 2009-10 Gross Sales and Other Income 594.92 415.80 Operating Profit (PBIDT) 89.08 59.96 Profit before tax 74.31 43.80 Profit after tax 50.20 29.63 Depreciation related to earlier years 3.10 - Surplus brought forward 135.61 105.98 Amount available for appropriation carried forward 182.72 135.61 PERFORMANCE AND OUTLOOK FOR THE FUTURE The Company achieved a turnover, net of excise, of Rs. 545.34 crore as against previous year turnover of Rs. 380.68 crore, recording an impressive growth of over 40%, with corresponding increase in operating profits. Exports during the year at Rs.228.81 crore recorded growth of more than 100% over last years exports level of Rs. 101.51 crore. The year under review was favourable with all round buoyancy in demand. However, emerging Global economic scenario coupled with domestic threats to countrys economic growth due to unmanageable fiscal deficit, inflation, increase in bank rates, accelerating commodity & crude prices are cause of concern. Being a leading global supplier of machines for Plastic Woven Fabric Industry, your Company continuously assesses the customer needs to develop new products which deliver better value to customers. Your Directors are confident of the Company maintaining its lead position and continuing to be on growth path in the years to come.