pm telelinnks ltd share price Management discussions

MANAGEMENT DISCUSSIONS AND ANALYSIS REPORT

INTRODUCTION

As of April 2023, India was the worlds second-largest producer of crude steel, with an output of 10.14 MT. In FY22, the production of crude steel and finished steel stood at 133.596 MT and 120.01 MT, respectively. The growth in the Indian steel sector has been driven by the domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to Indias manufacturing output.

The Indian steel industry is modern, with state-of-the-art steel mills. It has always strived for continuous modernisation of older plants and up-gradation to higher energy efficiency levels.

The Indian steel industry is classified into three categories - major producers, main producers and secondary producers.

COMPANY PERSPECTIVE

The Company was incorporated as a Limited Company on 05.03.1980 and was engaged in the business of manufacturing of Cold Roll Steel. In 1997 the Company entered in to Pipes and Tubes of HR and CR steel. In 1999 the company expanded and added galvanizing of tubes and ventured in to different shapes of Tubes and also added Jointing Kits for Telecom Cables.

At present the company is into Trading Activities of IRON and STEELS such as TMT Bars, REBARS, TOWER PARTS etc,.

FINANCIAL PERFORMANCE:

Revenues

Company has recorded the revenue of Rs.32, 01, 73,600 during 2022-23 as compared to Rs. 36, 29, 24,330 Lakhs in 2021-22.

Other Incomes

The Other incomes for 2022-23 of Rs. 300 Lakhs has decreased, as compared to Rs. 1, 45, 60,710 income from other source of previous year 2021-22.

Expenditure

The expenses for 2022-23 of Rs.31, 78, 62,810 Lakhs has decreased, compared to Rs. 35, 73, 75,460 in 2021-22.

Profit before Tax

There is Loss before Tax for Rs.23, 11,090 2022-23 of Rs. compared to Profit before Tax of Rs. 2, 01, 09,580 Lakhs in 2021-22.

Profits after Tax

The Profit After Tax for 2022-23 of Rs. 16,38,550 as against Profit After Tax of Rs 1,86,48,790 in the previous year 2021-22.

Earnings per Share

The EPS for 2022-23 Decrease to Rs. 0.16 as compared to Rs. 1.85 in Previous Year.

RISK MANAGEMENT

Risks are inherent to our business as our operating environment is complex, highly regulated, and dynamic. To attain our strategic growth objectives, protect the interests of all our stakeholders and meeting legal requirements we have an established process of identifying, analysing, and responding appropriately to all business risks. We have a well-embedded Risk Management Framework to ensure that we are well-placed to manage any adverse effect posed by financial, operational, strategic or regulatory related risks.

Our framework adopts appropriate risk mitigation measures for identified risks across functions. The process ensures that new risks, which might arise, or the impact of existing risks which might have increased, are identified and a strategy is put in place for mitigating such risks. The major risks identified by the management are regulatory, competition, supply chain disruption, cyber and data security.

INTERNAL CONTROLS AND ADEQUACY

Your Company has a robust and reliable system of internal controls commensurate with the nature of the business, and the scale and complexity of operations. The Company has adopted policies and procedures covering all financial, operating and compliance functions. These controls have been designed to provide a reasonable assurance over:

1. Effectiveness and efficiency of operations

2. Safeguarding of assets from unauthorised use or losses

3. Compliance with applicable laws and regulations

4. Prevention and detection of frauds and errors

5. Accuracy and completeness of the accounting records

6. Timely preparation of reliable financial information

The current system of Internal Financial Controls (IFC) is aligned with the requirement of the Companies Act 2013, The Internal Audit team (IA) function of the Company functionally reports to the Chairperson of the Audit Committee, thereby maintaining its objectivity.

FORWARD-LOOKING STATEMENTS

Your directors are focusing to strengths its Domestic Market through expansion of its activities and will make the necessary investment when attractive opportunities arise.

OPPORTUNITIES & THREATS:

Once again, this correlation was evident inFY 2022-23 as the steel industry seized the opportunity presented by Indias resilient economic growth, despite the prevailing uncertainty in the global economic environment. Notably, Indian steel demand experienced an annual growth rate of 13.3% in 2022. Likewise, propelled by robust momentum in infrastructure spending and continued growth in domestic consumption, the demand for steel in India is anticipated to witness an annual expansion of 8-9 MT in the upcoming two fiscal years. Consequently, this is projected to result in an estimated growth rate of 7.5% in FY 2023-24 and 6.3% in 2024-25.

OUTLOOK:

Your company has been following the philosophy of providing the highest quality products and services at the lowest possible prices. Your Companys philosophy to provide high class quality products i.e., full value for money, to consumers would greatly benefit in the long run. Your company will continue to follow this philosophy in the new operations that it is likely to undertake.

HUMAN RESOURCES:

Your Company believes in creating an environment, wherein human resources derive a sense of purpose, passion and personal growth at work, leading to organizational performance. Towards realizing this, the company relies on the four pillars, namely, performance management, talent engagement, Capability development and maintaining cordial industrial relations. It also believes in review of its HR processes and systems on an ongoing basis to optimize costs, time and labour.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objective, projections, estimates, expectations may be forward-looking statements. Actual results may differ materially from those expressed or implied due to various risks and uncertainties. Important factors that could make a difference to the Companys operations include global and Indian demand-supply conditions, finished goods prices, changes in government regulations and policies, tax regimes, economic conditions within India and the countries within which the Company conducts business and other such factors. The Company does not undertake to update these statements.