nirav commercials ltd share price Management discussions

Your Company is engaged in manufacturing of Aluminium Grills, Doors & Windows and has two manufacturing units namely ‘Elesar Focchi, one of them is situated at Daman (UT) & another at Taloja, Dist; Raigad (Maharashtra).

Opportunities

With widespread use in urban & rural buildings - aluminium windows, door frames, roofing, partitions, false ceilings etc, there is buoyancy expected in the marketplace. The market place for aluminum doors and windows market is segmented into exterior doors, sliding windows, bi-fold windows and other variations. Going forward, the sliding window segment is expected to be the fastest growing in the market. Growth in the historic period resulted from growth in home remodelling sector, increased focus on sustainability, low cost of aluminum, and increased demand for eco-friendly furniture. It means demand for your Companys products should be ongoing. Our analysis of proposed / on-going projects indicates that there would be a reasonable order position.

Major threats

The Company operates in a highly competitive environment and a fragmented marketplace. Even though significant investments are planned by the Government of India, there has always been a lag in the actual implementation and execution of those investments which may impact the performance of your Company.

Segment-wise performance

Your Company is in single segment of manufacturing of Aluminium Doors & Windows and trying to increase its revenue, specially through exports.

Outlook

With the growth in the real estate sector, there seems to be a positive outlook for our products.

Risk and concern

The Company recognises that risk is an integral part of business and is committed to managing the risks in a proactive and e_icient manner. As always, volatility in the price of aluminium will affect the performance of the Company.

Internal control system and their adequacy

Your Company has a real time system of monitoring its targets as well as expenditure.

Performance

Your Company has constantly trying to increase its sales as well as profitability.

Development in human resource / industrial relations

The company places high importance on the development of its human resources. It imparts regular training to its employees to make them more focused to adapt to the constant change in the business environment. Industrial relation in the units was satisfactory.

Key Financial Ratios with details of significant changes

The company has identified the following as key financial ratios:

Ratio	2022-23	2021-22
Debtors Turnover	5.62	2.17
Inventory Turnover	2.90	143.53
Interest Coverage	3.71	33.92
Current Ratio	9.21	12.42
Debt Equity	7.86	3.35
Operating Profit Margin (%)	6.26%	5.81%
Net Profit /(Loss) Margin (%)	5.84%	12.11%
Change in Net Worth as compare to previous year	0.02	0.07