Nirav Commercials Ltd Management Discussions

Industry sector and development

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

The aluminium doors and windows market size has grown strongly in recent years. It will grow from $63.85 billion in 2023 to $68.24 billion in 2024 at a compound annual growth rate (CAGR) of 6.9%. The growth observed in the historical period can be attributed to various factors, including the expansion of the home remodelling sector, a heightened emphasis on sustainability, the affordability of aluminium, and an increased demand for eco-friendly furniture.

The India aluminium doors and windows market is experiencing growth as the construction and real estate sectors continue to expand. Aluminium doors and windows are preferred for their durability, aesthetics, and energy efficiency. They are increasingly used in residential and commercial buildings.

It means demand of your Company products i.e. aluminium doors, windows and grills should be ongoing. Our analysis of proposed / on-going projects indicates that there would be a reasonable order.

Your company has also in the recent years developed new products for the export market. It is currently exporting to Australia, New Zealand, USA, Argentina and the UK. It is hoped that this will develop further in the coming years.

Major threats

The India Aluminium Doors and Windows market faces challenges related to quality standards, energy efficiency requirements, and competition from alternative building materials. The Company operates in a highly competitive environment, significant investments are planned by the Government of India, there has always been a lag in the planned investments and in the actual implementation and execution of those investments and that may impact performance of the Company.

Segment-wise performance

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

Outlook

The government initiating investments 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 efficient 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:

Ratios	Consolidated
	2023-24	2022-23
Current Ratio	14.24	9.67
Debt Equity ratio	0.03	-
Debt Service coverage ratio	0.53	-
Return on equity ratio	0.01	0.02
Inventory Turnover ratio	2.44	2.90
Trade receivable turnover ratio in months(annualised)	6.28	5.62
Trade payable turnover Ratio	10.37	10.41
Net capital turnover ratio	200.42%	58.30%
Net Profit Ratio	3.05%	6.98%
Turnover on Capital employed ratio	1.77%	3.14%
Return on Investment ratio	0.72%	-0.16%