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Permanent Magnets Ltd Management Discussions

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Jul 18, 2024|03:43:00 PM

Permanent Magnets Ltd Share Price Management Discussions

Global economy

The global economy has endured a period of turbulence and instability over recent years, as a result of pandemic, trade tensions and geopolitical confrontations combined with rising inflation. Pivoting to CY23, the global economy finds itself confronting a set of challenges that feel both familiar yet unprecedented.

The IMF predicts that the global economic growth will decelerate from 3.4% in CY22 to 2.9% in CY23, before experiencing a modest recovery of 3.1% in CY24. This slowdown can be attributed to a widening divergence in growth rates between advanced and emerging economies, coupled with tightening financial conditions and a significant rise in food and energy prices. In addition, persistent inflation and the decoupling of the worlds two largest economies are also contributing to the economic downturn. However, there are reasons to remain optimistic. Central banks across the globe are expected to signal interest rate cuts, which is expected to result in a sustained recovery of asset prices and the economy by the end of CY23.

Despite these persistent headwinds, the global economy has demonstrated remarkable resilience towards the end of 2022, dispelling the apprehensions of a protracted downturn. In addition, a delightful surprise has emerged in several economies. The unforeseen strengthening of real GDP; driven by the remarkable resilience of private consumption, investment and favourable fiscal stimulus, has fortified economic growth. Tight labour markets and pent up demand for services have created a unique opportunity for households to capitalise on their savings, while business investment has further consolidated this expansion, signifying a growing sense of confidence in future prospects.

Additionally, it is also noteworthy that the energy markets have demonstrated remarkable agility in responding to the shock of Russias invasion of Ukraine, thus propelling the growth momentum forward. In summary, while challenges loom over the global economy, the strength demonstrated by key economies in the face of these challenges inspire confidence that will lead to achieving sustainable growth in the years ahead.

Indian economy

Indias economy has been on a remarkable upswing, with a projected growth rate of 7% (in real terms) for FY23. Despite the challenges posed by the COVID-19 pandemic, conflict between Russia and Ukraine, and Central Banks across economies responding with synchronised policy rate hikes to curb inflation, India continues to be projected as the fastest-growing major economy by agencies worldwide.

The factors driving this economic growth include a surge in credit growth to the Micro, Small, and Medium Enterprises (MSME) sector, which has averaged over 30.5% between January and November, 2022. Additionally, the capital expenditure of the Central Government rose by 63.4% in the first eight months of FY23, further driving economic growth. In addition, the rebound in private consumption, supported by a rebound in contact-intensive services such as trade, hotels, and transport, has contributed to Indias growth in FY23.

In addition to these factors, Indias economic growth has been driven by capital formation, generating employment as seen in the declining urban unemployment rate and in the faster net registration in the Employee Provident Fund. The countrys vaccination drive involving more than 2 billion doses has also helped lift consumer sentiments, prolonging the rebound in consumption. As Indias private consumption and capital formation continue to drive growth, the country is poised to embark on a dynamic cycle of credit disbursal and capital investment in FY24. The expansion of public digital platforms, along with path-breaking measures such as PM GatiShakti, the National Logistics Policy, and the Production-Linked Incentive schemes, are set to boost manufacturing output and further propel the economy forward.

With a strong focus on innovation and sustainable development, India is set to spearhead the global economic recovery and emerge as a leading player in the international arena. Its unwavering commitment to progress and growth will continue to inspire and propel the nation towards greater heights of prosperity and success.

Global EV Trends

Overview

In 2022, electric car sales achieved yet another remarkable milestone, setting a new record despite facing challenges such as supply chain disruptions, macro-economic uncertainties, geopolitical tensions and soaring commodity and energy prices. Surprisingly, this growth occurred amidst a global contraction in car markets, with total car sales dipping by 3% compared to 2021. However, the electric car segment, comprising both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), defied the odds and surpassed 10 million units sold, representing a remarkable 55% increase from the previous year.

The speed at which electric car sales have surged is truly astonishing. In just five years, from 2017 to 2022, sales have increased from around 1 million to over 10 million. Comparatively, it took, from 2012 to 2017, for electric vehicle sales to grow from 100,000 to 1 million, underscoring the exponential nature of their growth. As a result of this phenomenal growth, the share of electric cars in the total car sales market spiked from 9% in 2021 to an impressive 14% in 2022, marking a tenfold increase in their market share since 2017.

The number of electric cars on the road also soared, with over 26 million electric vehicles traversing the worlds streets in 2022, a substantial 60% increase compared to 2021.

The year 2022 showcased the dominance of the electric vehicle market, marking a phenomenal 55% growth compared to 2021. Notably, China played a significant role in driving this global growth, with sales in the country surging by an impressive 80% and contributing to 60% of the overall global growth. Meanwhile, Europe continued to exhibit substantial growth, with a 15% increase, and the United States witnessed accelerated growth at 55%.

The prevalence of electric cars in China is notable, as it now houses almost half of the worlds electric vehicles, with 13.8 million units out of the global total of 32.9 million. Financially, the global spending on electric cars hit a staggering USD 425 billion in 2022, marking a significant 50% increase from the previous year. This substantial investment further reinforces the continued interest and confidence in the electric car market.

Industry Trends

• Electric car sales break new records with momentum expected to continue through 2023: Over 2.3 million electric cars were sold in the first quarter, about 25% more than in the same period last year

• Landmark EV policies are driving the outlook for EVs closer to climate ambitions: The EU and the US have passed legislation to match their electrification ambitions

• As spending and competition increase, a growing number of more affordable models come to market:

A growing number of new entrants, primarily from China but also from other emerging markets are offering more affordable models; The number of available electric car models reached 500 in 2022, more than double the options available in 2018.

• EV supply chains and batteries gain greater prominence in policy-making: EV supply chains are increasingly at the forefront of EV-related policymaking to build resilience through diversification

Source: IEA

Global Smart Meters

A smart meter is an advanced electronic device designed to record crucial information related to electric energy consumption, such as voltage levels, current, and power factor. It plays a pivotal role in providing consumers with a clearer understanding of their energy usage patterns while enabling electricity suppliers to monitor the system efficiently and accurately bill their customers. The global smart meters market is projected to reach approximately USD 23.1 billion by 2023, with an expected Compound Annual Growth Rate (CAGR) of 9.4%, propelling it to a size of USD 36.3 billion by 2028.

Smart meters have been steadily gaining traction worldwide, integrating into metering systems across different regions. Notably, around 68% of metering systems in the USA have transitioned to smart meters, while the EU and Canada account for approximately 50% of the market.

In Australia, about 25% of metering systems have adopted smart meters. However, in India, smart meters make up only 1.5% of the market, indicating significant room for improvement. Government policies across the globe are actively promoting Advanced Metering Infrastructures (AMIs) to drive automation and technological advancement, presenting exceptional growth opportunities, especially in markets with limited smart meter penetration.

Source:

1. Australias installed smart electricity meters base at 3.3 million out of a total 13.6 million meters - SMI

2. USAs estimated installed household smart electricity meters base at 107 million, representing 75% of US households - SMI

3. Europes installed smart electricity meters base at 150 million, representing a 49% penetration rate - SMI

4. Indias smart meters base at 3.7 million, out of the Government of Indias mission to install 250 million meters by 2025 - Powerline

5. Canadas installed smart electricity meters base is estimated to be 6.2 million out of 12.4 million households, indicating about 50% penetration - Energyrates

One of the persistent challenges faced by the power distribution and supply industry is efficiently matching demand with supply. Smart electricity meters are expected to bridge this gap, significantly enhancing industry efficiency. These smart meters offer consumers the advantage of timely failure detection, faster service accommodations, and accurate billing. For power companies, these meters reduce the reliance on manual meter readings, limit equipment and maintenance costs, and enable quicker restoration and maintenance processes. Moreover, they empower companies to track and mitigate power loss and theft effectively.

Furthermore, smart meters enable the integration of distributed energy resources and energy storage, facilitating effective supply management for specific uses like residential electric vehicle (EV) charging. Such automation leads to improved operational efficiencies, greater grid resilience, and precise meter readings. Anticipating the future, it is expected that the growth of the smart metering industry will be fueled by the development of smart grid networks and regulatory initiatives. These steps not only encourage the replacement of outdated metering systems with modern technologies but also contribute to the overall energy supply and consumption efficiency. In the long run, consumers can adjust their energy usage based on time-based pricing models, while supply and distribution companies can optimize capacity utilization, ultimately resulting in rationalized rates and enhanced resource management.

Source: Markets and Market

Indian Smart Meters Landscape

Revamped Distribution Sector Scheme: Reforms-Based and Result-Linked

The government of India has approved the Revamped Distribution Sector Scheme (RDSS) to help DISCOMs improve their operational efficiencies and financial sustainability by providing result-linked financial assistance to DISCOMs to strengthen supply infrastructure based on meeting pre-qualifying criteria and achieving basic minimum benchmarks. The scheme has an outlay of ^ 3,03,758 Crores over 5 years i.e. FY 2021-22 to FY 2025-26. The outlay includes an estimated Government Budgetary Support (GBS) of ^ 97,631 Crores.

REC and PFC have been nominated as nodal agencies for facilitating the implementation of the scheme.

The scheme aims to meet the following objectives:

• Reduction of AT&C losses to pan-India levels of 12-15% by 2024-25.

• Reduction of ACS-ARR gap to zero by 2024-25.

• Improvement in the quality, reliability and affordability of power supply to consumers through a financially sustainable and operationally efficient distribution sector.

The Scheme has the following components:

• Part A - Financial support for Prepaid Smart Metering & System Metering and up-gradation of the Distribution Infrastructure.

• Part B - Training & Capacity Building and other Enabling & Supporting Activities.

Learning from the experience of previous schemes, the Revamped Distribution Sector Scheme has been developed to address state-specific needs. Some of the salient features are as below:

• Prepaid Smart Metering to be prioritized for

? 500 AMRUT cities, with AT&C Losses > 15%

? All Union Territories

? MSMEs, Industrial and Commercial consumers ? All Government offices at the Block level and above ? Other areas with high losses

• Prepaid Smart metering for remaining consumers and areas is proposed to be taken up by the respective DISCOMs in a phased manner.

• Prepaid Smart metering and system metering are proposed to be implemented through PPP on TOTEX (CAPEX+OPEX) mode.

• Part A of the scheme also provides financial assistance to DISCOMs for infrastructure creation and undertaking reforms to achieve the desired results towards improvement in operational efficiency and financial sustainability.

• Provision of feeder segregation for unsegregated feeders. Thereafter these feeders are to be solarized under KUSUM - leading to cheap/free daytime power for irrigation.

• The pre-qualifying criteria need to be mandatorily met with the DISCOMs before they can be evaluated based on the Result Evaluation Matrix. Thereafter, performance based on Result Evaluation Matrix shall form the basis for the release of funds under the scheme.

• For Prepaid Smart metering, a grant of ^ 900 or 15% of the cost per consumer meter (whichever is lower), shall be available for "Other than Special Category" States. For "Special Category" States, the grant of ^ 1350 or 22.5% of the cost per consumer (whichever is lower) shall be available.

• To incentivize the States/UTs to fast-track installation of prepaid Smart Meters by December 2023, an additional incentive of 7.5% of the cost per consumer meter or

^ 450 (whichever is lower) shall be available. For "Special Category" States the additional incentive shall be 11.25% or ^ 675 per consumer meter (whichever is lower).

• For works other than smart metering, maximum financial assistance given to DISCOMs of "Other than Special Category" States will be 60% of the approved cost, while for the DISCOMs in special category states, the maximum financial assistance will be 90% of the approved cost.

Source: REC

Smart Consumer Metering Current Status as per Govt. of India

Sl

Nodal Agency

State

DISCOM

Scheme

Total Sanctioned Awarded Cumulative Achievement

1

PFC

Andhra Pradesh

APSPDCL

RDSS

23,02,644 19,76,922 0

2

PFC

Andhra Pradesh

APCPDCL

RDSS

20,50,962 13,59,912 0

3

PFC

Andhra Pradesh

APEPDCL

RDSS

12,55,240 9,82,316 0

4

PFC

Uttarakhand

UPCL

RDSS

15,84,205 0 0

5

PFC

Gujarat

DGVCL

RDSS

40,78,120 16,88,251 0

6

PFC

Gujarat

MGVCL

RDSS

32,99,991 32,99,991 0

7

PFC

Gujarat

PGVCL

RDSS

55,83,509 22,57,478 0

8

PFC

Gujarat

UGVCL

RDSS

35,20,251 35,25,480 0

9

PFC

Haryana

DHBVNL

RDSS

41,65,618 0 0

10

PFC

Haryana

UHBVNL

RDSS

32,40,000 0 0

11

PFC

Himachal Pradesh

HPSEBL

RDSS

28,00,945 0 0

12

PFC

Jharkhand

JBVNL

RDSS

13,41,306 0 0

13

PFC

Kerala

KSEBL

RDSS

1,32,48,923 0 0

14

PFC

Kerala

TCED

RDSS

40,438 0 0

15

PFC

Madhya Pradesh

MP-East

RDSS

51,44,451 9,71,306 0

16

PFC

Madhya Pradesh

MP-Central

RDSS

39,55,918 9,39,527 0

17

PFC

Madhya Pradesh

MP-West

RDSS

38,79,733 3,74,241 42,702

18

PFC

Maharashtra

MSEDCL

RDSS

2,24,88,866 0 0

19

PFC

Maharashtra

BEST

RDSS

10,75,881 10,75,890 0

20

PFC

Puducherry

PED

RDSS

4,03,767 0 0

21

PFC

Punjab

PSPCL

RDSS

87,84,807 0 0

22

REC

Andaman and Nicobar

EDANI

RDSS

83,573 0 0

23

REC

Arunachal Pradesh

Arunachal PD

RDSS

2,87,446 0 0

24

REC

Assam

APDCL

RDSS

63,64,798 49,57,239 3,24,829

25

REC

Bihar

NBPDCL

RDSS

10,30,000 10,30,000 6,25,389

26

REC

Bihar

SBPDCL

RDSS

13,20,000 13,20,000 8,09,359

27

REC

Chhattisgarh

CSPDCL

RDSS

59,62,115 44,61,743 0

28

REC

Goa

Goa PD

RDSS

7,41,160 0 0

29

REC

Jammu and Kashmir

JPDCL

RDSS

7,21,346 0 0

30

REC

Jammu and Kashmir

KPDCL

RDSS

6,85,699 0 0

31

REC

Karnataka

-

RDSS

0 0 0

32

REC

Ladakh

Ladakh PD

RDSS

0 0 0

33

REC

Manipur

MSPDCL

RDSS

1,54,400 0 0

34

REC

Meghalaya

MePDCL

RDSS

4,60,000 0 0

35

REC

Mizoram

Mizoram PD

RDSS

2,89,383 0 0

36

REC

Nagaland

Nagaland PD

RDSS

3,17,210 0 0

37

REC

Rajasthan

AVVNL

RDSS

54,32,231 0 0

38

REC

Rajasthan

JdVVNL

RDSS

40,80,082 0 0

39

REC

Rajasthan

JVVNL

RDSS

47,62,643 0 0

40

REC

Sikkim

Sikkim PD

RDSS

1,44,680 0 0

41

REC

Tamil Nadu

TANGEDCO

RDSS

3,00,00,000 0 0

42

REC

Tripura

TSECL

RDSS

5,47,489 0 0

43

REC

Uttar Pradesh

DVVNL

RDSS

53,54,069 24,49,604 0

44

REC

Uttar Pradesh

KESCO

RDSS

6,25,001 0 0

45

REC

Uttar Pradesh

MVVNL

RDSS

75,28,737 0 0

46

REC

Uttar Pradesh

PVVNL

RDSS

61,43,261 61,43,261 0

47

REC

Uttar Pradesh

PuVVNL

RDSS

73,27,988 46,88,898 0

48

REC

West Bengal

WBSEDCL

RDSS

2,07,17,969 0 0

49

REC

Andaman and Nicobar

EDANI

IPDS

36,800 36,800 36,800

50

REC

Andaman and Nicobar

EDANI

DDUGJY

38,400 38,400 38,400

51

Utility

Andhra Pradesh

APEPDCL

Utility

Owned

2,000 2,000 2,000

52

REC

Assam

APDCL

Utility

Owned

70,000 70,000 70,000

53

NSGM

Assam

APDCL

IPDS (SG Pilots)

14,519 14,519 14,519

54

REC

Assam

APDCL

Utility

Owned

1,34,000 1,34,000 1,34,000

55

REC

Assam

APDCL

Utility

Owned

1,34,000 1,34,000 1,34,000

56

REC

Assam

APDCL

Utility

Owned

32,276 32,276 2,262

57

REC

Bihar

NBPDCL

Utility

Owned

1,02,90,000 26,00,000 1,89,274

58

REC

Bihar

SBPDCL

Utility

Owned

45,10,339 10,00,000 41,909

59

Utility

Bihar

SBPDCL

Utility

Owned

40,500 40,500 40,500

60

Utility

Bihar

IPCL

Utility

Owned

17,100 17,100 17,100

61

Utility

Bihar

BEDCPL

Utility

Owned

1,000 1,000 1,000

62

NSGM

Chandigarh

CED

NSGM

29,433 29,433 24,214

63

EESL

Delhi

NDMC

Utility

Owned

65,000 65,000 65,000

64

Utility

Delhi

TPDDL

Utility

Owned

1,95,000 1,95,000 1,95,000

65

NSGM

Gujarat

UGVCL

IPDS (SG Pilots)

23,760 23,760 23,760

66

NSGM

Haryana

UHBVNL

IPDS (SG Pilots)

10,188 10,188 10,188

67

NSGM

Haryana

SGKC Lab

IPDS (SG Pilots)

10 10 10

68

PFC

Haryana

DHBVNL

Utility

Owned

5,00,000 5,00,000 2,56,972

69

PFC

Haryana

UHBVNL

Utility

Owned

5,00,000 5,00,000 4,41,390

70

NSGM

Himachal Pradesh

HPSEBL

IPDS (SG Pilots)

1,335 1,335 1,335

71

PFC

Himachal Pradesh

HPSEBL

IPDS

75,712 75,712 75,712

72

PFC

Himachal Pradesh

HPSEBL

Utility

Owned

76,028 76,028 76,028

73

REC

Jammu and Kashmir

JPDCL

PMDP-

Phase-I

1,00,000 67,650 66,015

74

REC

Jammu and Kashmir

JPDCL

PMDP-

Phase-II

3,00,000 2,69,333 1,07,861

75

REC

Jammu and Kashmir

KPDCL

PMDP-

Phase-I

1,00,000 59,400 58,651

76

REC

Jammu and Kashmir

KPDCL

PMDP-

Phase-II

3,00,000 2,69,334 81,567

77

NSGM

Karnataka

CESC

IPDS (SG Pilots)

21,874 21,874 21,874

78

PFC

Kerala

CPT

IPDS

ST&D

805 805 805

79

REC

Ladakh

Ladakh PD

SDP

58,930 58,930 928

80

PFC

Madhya Pradesh

MP-West

IPDS

1,24,477 1,24,477 1,24,477

81

PFC

Madhya Pradesh

MP-West

Utility

Owned

2,20,986 2,20,986 1,03,302

82

PFC

Madhya Pradesh

MP-West

IPDS

ST&D

1,18,836 1,18,836 1,18,836

83

REC

Mizoram

Mizoram PD

Utility

Owned

656 656 656

84

Utility

Odisha

OPTCL

Utility

Owned

4,000 4,000 4,000

85

Utility

Odisha

PPT

Utility

Owned

500 500 500

86

NSGM

Puducherry

PED

IPDS (SG Pilots)

28,910 28,910 28,910

87

Utility

Puducherry

PED

Utility

Owned

1,658 1,658 1,658

88

PFC

Punjab

PSPCL

IPDS

88,107 88,107 88,107

89

PFC

Punjab

PSPCL

Utility

Owned

7,893 7,893 0

90

PFC

Punjab

PSPCL

Utility

Owned

9,57,093 9,57,093 2,86,093

91

REC

Rajasthan

AVVNL

IPDS

68,673 68,673 68,673

92

REC

Rajasthan

AVVNL

Utility

Owned

1,000 1,000 1,000

93

REC

Rajasthan

JVVNL

IPDS

2,40,820 2,40,820 2,40,820

94

REC

Rajasthan

JVVNL

Utility

Owned

40,962 40,962 32,377

95

NSGM

Rajasthan

JVVNL

NSGM

1,49,089 1,49,089 1,37,802

96

REC

Rajasthan

JVVNL

Utility

Owned

70,000 70,000 70,000

97

REC

Rajasthan

JdVVNL

IPDS

56,027 56,027 56,027

98

REC

Tamil Nadu

TANGEDCO

Utility

Owned

1,40,849 1,40,849 1,26,510

99

NSGM

Telangana

TSSPDCL

IPDS (SG Pilots)

8,882 8,882 8,882

100

NSGM

Tripura

TSECL

IPDS (SG Pilots)

43,081 43,081 43,081

101

NSGM

Uttar Pradesh

IITK

IPDS (SG Pilots)

28 28 28

102

REC

Uttar Pradesh

MVVNL

Utility

Owned

9,04,000 9,04,000 3,80,731

103

REC

Uttar Pradesh

PVVNL

Utility

Owned

11,63,000 11,63,000 1,98,726

104

REC

Uttar Pradesh

DVVNL

Utility

Owned

6,29,000 6,29,000 1,47,991

105

REC

Uttar Pradesh

PuVVNL

Utility

Owned

11,47,225 11,47,225 3,21,433

106

REC

Uttar Pradesh

KESCO

Utility

Owned

1,56,000 1,56,000 1,38,072

107

NSGM

West Bengal

WBSEDCL

IPDS (SG Pilots)

5,164 5,164 5,164

108

Utility

West Bengal

CESC

Utility

Owned

10,000 10,000 10,000

109

REC

West Bengal

WBSEDCL

Utility

Owned

4,80,790 0 0

Total

22,98,73,570 5,62,33,362 67,75,209

Company Overview

Incorporated in 1960, Permanent Magnets has a rich experience of over 60 years in the magnets, magnetic assemblies and shunts domain. The Company is a leading solution provider of electrical components and assemblies based on certain core technologies which find application in the automobile, energy meter, renewable energy, aerospace & defence, food & beverage and many other such industries. The Company has strong expertise in 5 core product categories, wherein it designs and delivers innumerable customer-specific solutions, and these product categories include magnetic sensing, current sensing, magnetic assemblies, alloys and ZAMAK die-casting.

PMLs exceptional expertise in the fields of metallurgy, mechanical engineering, electrical engineering and electronics, enable it to offer comprehensive solutions to its clients. Due to its long-standing presence in the industry, the Company has an excellent understanding of clients quality requirements.

Apart from this the Company possesses superior capabilities in design & simulation of components & modules including customer-specific prototyping; various metals & metallurgical processes; and manufacturing technologies such as assembly processes, finishing processes, hot chamber die-casting and plastic moulding.

PML works closely with its distinguished clientele from across industries, many of whom are global leaders in their respective industries. While in some cases PML is one of the two-three suppliers for specific products, it is also the only supplier for many of its clients. PML is a preferred supplier of electrical components and assemblies to about 50% of the tier-1 automobile companies globally, in both traditional ICE vehicles and emerging technologies like EV. It is also a supplier to the top 3 electricity meter companies globally, and the Company holds a strong position in this segment with long-standing client relationships.

Internal Controls and Systems

There are established procedures for internal control on a Company-wide basis. Policies and procedures have been laid down to provide reasonable assurances that assets are safeguarded from risks of unauthorized use/disposition, and transactions are recorded and reported with proprietary accuracy and speed. These aspects are regularly reviewed during internal audits and statutory audits. In addition, the Company has also laid down adequate internal controls for financial reporting. During the year, such controls were tested, and no material weakness in their operating effectiveness was observed. The Finance and Accounts function is well-staffed with experienced and qualified personnel, and this team participates in the preparation and monitoring of budgets. The Audit Committee of the Board reviews internal Audit Reports periodically.

FY23 Performance Discussion

Total Income for the year stood at ?188.19 crore, as compared to ?133.26 crore in FY22, registering an increase of 41%. EBITDA (Excluding OI) for the year stood at ?41.27 crore in FY23, as compared to ?26.73 crore in FY22, subsequently EBITDA margin stood at 23% in FY23 as compared to 21% in FY22. Profit After Taxes for the year stood at ?29.75 crore, as compared to ?19.04 crore in FY22, registering an increase of 56% in the year.

Financial Ratios

Ratios

FY23 FY22 % Change Remarks
Total Debt to Equity (Times) 0.05 0.03 60% Due to negligible increase in debt
Current Ratio (Times) 3.40 3.26 4% NA
Interest Coverage (Times) 32.46 30.84 5% NA
Debtors Turnover (Times) 4.23 3.79 12% NA
Inventory Turnover (Times) 2.03 2.02 1% NA
Operating Profit Margin (%) 22.58% 20.64% 9% NA
Net Profit Margin (%) 15.81% 14.29% 11% NA
Return on Net Worth (%) 26.81% 23.16% 16% NA

Outlook

The outlook for the upcoming financial year remains promising, supported by several key factors. These include a growing pipeline of customer projects, an increase in the size of customer projects, expanding market share in existing product categories, and the integration of newer technologies and capabilities.

Additionally, we have made significant progress in engaging with customers in new markets, such as China. Though our business hasnt seen significant scale-up in these markets yet, we hold an optimistic view of their potential.

Furthermore, we are actively pursuing forward integration and product stage scale-up in certain categories. For instance, we are focusing on scaling up from magnets to assemblies in motors, which are utilized in Automobiles (Non-Current-Sensing Category). These strategic initiatives are expected to drive growth and solidify our position with customers in the long term.

Industrial Relations and Human Resource Management

The Company believes that the motivation of employees is the key to its success. It is committed to equipping them with the required training and skills, enabling them to evolve with technological advancements and achieve financial goals. The Companys HR department was consistently in touch with the employees to guide and solve their problems. The Companys permanent employee strength stood at 103 as of March 31,2023.

Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys objectives, estimates, expectations, or projections may constitute "forwardlooking statements" within applicable laws and regulations. However, actual results may differ materially from those either expressed or implied in the statements. Important factors that would influence the Companys operations include raw materials prices, product and application industrys performance, tax laws, interest rates, power cost, economic developments, and other factors within the country and the global economics domain.

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  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

RISK DISCLOSURE ON DERIVATIVES
  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
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This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.