md inducto cast ltd Management discussions

INDUSTRY STRUCTURE AND OUTLOOK:

Steel is a cornerstone and key driver for the worlds economy. Steel has been an important ingredient for economic growth. Steel has uses in various sectors viz. infrastructure, automobile, manufacturing, construction, etc. and thus, steel is an important factor driving Indias GDP growth.

Total performance of steel industry was tremendous in India. Huge scope for growth is offered by Indias comparatively low per capita steel consumption and the expected rise in consumption due to increased infrastructure construction and the thriving automobile and railways sectors. In FY23, the production of crude steel and finished steel stood at 125.32 MT and 121.29 MT, respectively. The consumption of finished steel stood at 119.17 MT in FY23. In FY23, exports and imports of finished steel stood at 6.7 MT and 6.02 MT, respectively.

Economically Financial year 2022-23 was good for the Company, as company earned Net profit of Rs. 1388.45 Lakh as against Net Profit of Rs. 844.20 Lakh in Previous year;

Our Company, incorporated in 2010 and listed on BSE board in 2015 is ISO 14001:2004, ISO 9001:2008 and BS OHSAS 18001:2007 certified. Our Company is engaged in manufacturing of superior quality TMT bars and billets. The registered office of our Company is situated at BL D-60, Kaliabid Shivna Kadiabid, Nr Waghawadi, Bhavnagar 364002, Gujarat, India.

Our Company "RUDRA GLOBAL INFRA PRODUCTS LIMITED" forms part of the esteemed Rudra Group. Rudra Group is promoted by a team of young entrepreneurs and experienced veterans with proven track records. The group started its journey in 1991 with a steel re-rolling mill having modest capacity of around 1000 MT per month. Today, the group is engaged in various backward & forward integrated businesses like Ship Recycling, Induction Furnace, Re-rolling mill, producing more than 1.25 Lakhs MT per annum of steel, with a group turnover of around Rs. 585 Crore per annum. Fulfilling its objective of consistent growth in quality steel manufacturing, our Company has launched its premiere TMT Brand "Rudra TMX" manufactured from premium quality billets.

Further, in the recent expansion, the company successfully conducted trial runs of the new rolling mill across all product sizes. This led to a doubling of TMT Bars manufacturing capacity, from 1.2 lakh tons to 2.4 lakh tons per annum. As a direct result, the company achieved higher production and realized a significant increase in turnover and profitability.

PRODUCT WISE PERFORMANCE:

Our Company is engaged in the manufacturing of TMT bars and Billets. Irrespective of worst economic Situation, number of competitors the overall demand of our products is high on account of superior quality and overall performance of our Company has improved during the current year in comparison with the earlier performance. The gross turnover of the company for the Financial Year ended March 31, 2023 and its segment wise comparison with previous Financial Year is given below:

Type of Product	2022-23		2021-22
	Qty.	Rs. (In Lac)	Qty.	Rs. (In Lac)
MS Billets	1547	732.97	5533	2491.36
TMT Bars	75029	41951.82	60531	30660.13
Other steel	6573	2087.41	4396	1051.02
Royalty Income	-	45.63

RISK AND CONCERN:

The development of the company would depend on overall macro and micro economic policy of the Government. The rapid technological advancement requiring huge investments is another area of concern for the company.

OPPORTUNITIES AND THREATS:

The industry has vast opportunities for expansion to meet up the increasing demand. As mentioned above, Irrespective of worst economic Situation and number of competitors the overall demand of our companys products is high hence, the company can take benefit of this opportunity. In addition to this, various thrusts to industrialization (Make in India) and infrastructure development given by our Government, the overall demand for steel products is certainly going to increase. With already established brand and quality, the company will certainly reap benefits of these policies.

The following factors have been considered for determining the materiality of Threat/Risk Factors:

1. General economic and business conditions in the markets in which we operate and in the local, regional, national and international economies;

2. Changes in laws and regulations relating to the sectors/areas in which we operate;

3. Major change in policy and/or practice of road transport.

FINANCIAL PERFORMANCE:

The Revenue of the company for the year ended March 31, 2023 was Rs. 45161.84 Lakh as against Rs. 35063.73 Lakh of previous year. The EBT for the year under review was Rs. 1376.62 Lakh as compared to EBT of Rs. 824.40 Lakh for the preceding year.

INTERNAL CONTROL:

Your Company has well-established and robust internal control systems in place which are commensurate with the nature of its businesses, size & scale and complexity of its operations. Roles and responsibilities are clearly defined and assigned. Standard operating procedures are in place and have been designed to provide a reasonable assurance. Your Company has carried out the evaluation of design and operating effectiveness of the controls to ensure adherence to the Standard operating procedures and noted no significant deficiencies/material weaknesses.

In addition to the above, internal audits are undertaken on a continuous basis by senior officer of the company covering all business operations periodically to validate the existing controls. The Internal audit program is reviewed by the Audit Committee at the beginning of the year to ensure that the coverage of the areas is adequate.

The Audit Committee reviews the adequacy and effectiveness of internal control systems and provides guidance for further strengthening them.

CAUTIONARY STATEMENT:

Statements in the Management Discussions and Analysis Report in regard to projections, estimates and expectations may be "forward looking statement" within meaning of applicable securities laws and regulations. Many unforeseen factors may come into play and affect the actual results, which would be different from what directors envisage in terms of future performance and outlook. Market data and product information contained in this report have been based on information gathered from various sources such as various published and un-published reports.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT - EMPLOYEE DATA

The total employee strength of the Company as on March 31, 2023 was 129, given the nature of the operations, a significant portion of the said employee strength comprises of technical and skilled employees and other unskilled employees. Your management takes pride in stating that there were no instances of strikes, lockouts or any other action on part of the employees that affected the functioning of the Company. This fact shows the concern of the company towards its real assets the workforce.

Details of significant changes (i.e. changes of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations thereof, including;

Ratio	Reason for change	2022-23	2021-22	Change	Change %
Debtors Turnover (no. of days)	Increased in sales and debtor realization are smooth	34	56	22	39.76
Inventory Turnover (no. of days)	Decreased stock inventory level	166	209	43.38	20.70
Interest Coverage Ratio (times)	Increased in EBITDA together with a decrease in the interest cost	2.17	1.49	0.68	+45.98
Current Ratio (time)	Short term debt decreased	1.43	1.39	0.05	+3.51
Debt Equity Ratio (times)	Retained Profit and Decreased in outside debt	2.36	3.19	0.83	+26.01
Operating EBITDA Margin (%)	Decreased in Operating Profit	5.88	6.94	1.06	-15.28
Net Profit Margin (%)	Increased in Operating Profit and decrease in the financial cost	3.19	2.42	0.77	+31.88
Return on Net Worth (%)	Increased in Net Profit	5.75	3.39	2.37	+69.87

By order of the Board of Directors

Date:- September 05, 2023	Rudra Global Infra Products Limited
Place:- Bhavnagar	Ashokkumar Gupta	Sahil Gupta
	Chairman & Director	Managing Director
	DIN:- 00175862	DIN:- 02941599