ECONOMIC OVERVIEW:
Global Economy
Global economic activity is experiencing a broad-based and
sharper-than-expected slowdown, with inflation higher than seen in several decades. The
cost-of-living crisis, tightening financial conditions in most regions, Russias
invasion of Ukraine, and the lingering COVID-19 pandemic all weigh heavily on the outlook.
Global growth is forecast to slow from 6.0 percent in 2021 to 3.2 percent in 2022 and 2.7
percent in 2023. This is the weakest growth profile since 2001 except for the global
financial crisis and the acute phase of the COVID-19 pandemic. Global inflation is
forecast to rise from 4.7 percent in 2021 to 8.8 percent in 2022 but to decline to 6.5
percent in 2023 and to 4.1 percent by 2024. Monetary policy should stay the course to
restore price stability, and fiscal policy should aim to alleviate the cost-of-living
pressures while maintaining a sufficiently tight stance aligned with monetary policy.
Structural reforms can further support the fight against inflation by improving
productivity and easing supply constraints, while multilateral cooperation is necessary
for fast-tracking the green energy transition and preventing fragmentation.
Indian Economy Outlook
The Indian economy GDP growth for FY 2022-23 is 7.2% which is higher
than the projected GDP by 7% for the year 2022- 23. During the Q3 (ending Dec-2022) of FY
2022-23, DGP growth accelerated to 6.1%. The Indian economy is expected to remain robust
growth in a range of 6.5 - 6.7 % in the FY 2023-24. The India is forecasted to be one of
the fastest growing economy in FY 2023-24 by robust growth in private consumption and
private investment. The Asian Development Bank projects Indias GDP to moderate to
6.4% in FY 2023 and rise to 6.7% in FY 2024, driven by private consumption and private
investment on the back of government policies to improve transport infrastructure,
logistics, and the business ecosystem. RBI projects headline inflation at 6.8 per cent in
FY23, which is outside its target range.
INDUSTRY STRUCTURE AND DEVELOPMENTS:
Global Brass Industry and Developments
The global brass industry is expected to grow at a CAGR of 5.5% from
2022 to 2028, driven by the increasing demand for brass in a variety of industries.
The automotive industry is the largest consumer of brass, accounting
for over 30% of the global demand. Brass is used in a variety of automotive applications,
such as engine parts, fuel systems, and bodywork. The increasing demand for fuel-efficient
vehicles is driving the demand for brass in the automotive industry. Brass is a good
conductor of heat and can be used to make lightweight components that help to improve fuel
efficiency.
The construction industry is another major consumer of brass,
accounting for over 20% of the global demand. Brass is used in a variety of construction
applications, such as pipes, valves, and fittings. The increasing demand for
infrastructure development is driving the demand for brass in the construction industry.
Brass is a durable and corrosion-resistant material that can be used in a variety of harsh
environments.
The electrical & electronics industry is also a major consumer of
brass, accounting for over 15% of the global demand. Brass is used in a variety of
electrical & electronics applications, such as connectors, switches, and relays. The
increasing demand for electronic devices is driving the demand for brass in the electrical
& electronics industry. Brass is a good conductor of electricity and can be used to
make small, lightweight components that are essential for electronic devices.
Other opportunities for the global brass industry include:
The growing demand for brass in emerging economies, such as China and
India.
The increasing use of brass in renewable energy applications, such as
solar panels and wind turbines.
The development of new and innovative applications for brass, such as
3D printing. The global brass industry is facing some challenges, such as:
The volatility of raw material prices.
The increasing competition from substitutes, such as plastics and
aluminum.
The need to comply with environmental regulations.
However, the industry is also taking steps to address these challenges,
such as:
Investing in research and development to develop new and innovative
applications for brass.
Working with governments to develop regulations that are supportive of
the industry.
Promoting the use of brass as a sustainable material.
Overall, the global brass industry is expected to continue to grow in
the coming years, driven by the increasing demand for brass in a variety of applications.
Indian Brass Industry and Developments
The Indian economy is on a healthy growth trajectory, with a rising
share of investment in GDP. The government has allocated significant funds for
infrastructure spending in the 2023-24 budget. This is expected to boost demand for steel
in the construction sector.
The automotive and consumer durables sectors are also expected to grow
in 2023. The automotive sector is expected to benefit from the rising disposable incomes
of the people. The consumer durables sector is expected to grow, driven by the increasing
demand for home appliances and electronic goods.
The brass industry in India is expected to grow at a CAGR of 8.5% from
2022 to 2027. The growth of the industry is being driven by the increasing demand for
brass in the construction, electronics, automotive, and consumer goods industries.
The construction industry is the largest consumer of brass in India.
Brass is used in a variety of applications in the construction industry, including pipes,
valves, fittings, and architectural components. The governments focus on infrastructure
development is expected to boost the demand for brass in the construction industry.
The electronics industry is also a major consumer of brass. Brass is
used in a variety of applications in the electronics industry, including connectors,
switches, and heat sinks. The growth of the electronics industry is expected to drive the
demand for brass in India.
The automotive industry is another major consumer of brass. Brass is
used in a variety of applications in the automotive industry, including fuel tanks,
radiators, and exhaust systems. The growth of the automotive industry is expected to boost
the demand for brass in India.
The consumer goods industry is also a major consumer of brass. Brass is
used in a variety of applications in the consumer goods industry, including utensils,
jewelry, and ornaments. The growth of the consumer goods industry is expected to drive the
demand for brass in India.
In addition to the domestic demand, the export market is also expected
to grow in the coming years. India is a major exporter of brass products, and the
governments focus on increasing exports is expected to boost the demand for brass in
India.
The brass industry in India is facing some challenges, such as the
rising cost of raw materials and the competition from China. However, the industry is
well-positioned to grow in the coming years due to the strong demand from the domestic and
export markets.
GOVERNMENT INITIATIVES:
The brass industry is a major contributor to the Indian economy. It
provides employment to millions of people and generates billions of rupees in revenue.
Government initiatives play a major role in boosting the growth of the industry and create
more jobs and opportunities for the people of India, some of these initiatives are as
follows:
Production Linked Incentive (PLI) Scheme: The PLI scheme
provides financial incentives to companies that set up new manufacturing units or expand
existing units in the brass industry. The scheme is expected to attract investment of
around INR 5,000 crore and create over 20,000 jobs.
Customs duty exemption: The government has exempted customs duty
on the import of raw materials used in the brass industry, such as copper scrap and zinc.
This will help to reduce the cost of production and make Indian brass more competitive in
the global market.
Investment subsidy: The government provides an investment
subsidy of 15% to companies that set up new manufacturing units in the brass industry.
This subsidy will help to reduce the upfront cost of investment and make it more
attractive for companies to set up units in India.
Tax holiday: The government provides a tax holiday of five years
to companies that set up new manufacturing units in the brass industry. This will help to
reduce the tax burden on companies and make it more profitable to set up units in India.
R&D funding: The government provides funding for research
and development (R&D) activities in the brass industry. This funding will help to
support the development of new technologies and applications for brass.
Infrastructure development: The government is investing in the
development of infrastructure, such as roads, ports, and power plants, in areas where the
brass industry is located. This will help to improve the ease of doing business in these
areas and attract investment.
The governments initiatives are aligned with the National
Manufacturing Policy, which aims to make India a global manufacturing hub. The brass
industry is a key focus area of the policy, and the governments initiatives are expected
to help the industry achieve its full potential. These initiatives are expected to boost
the growth of the brass industry in India and make the country a global hub for brass
manufacturing.
OUR BUSINESS:
Originated in Jamnagar, India in the year 1991, Pooja Western Metaliks
Ltd is one of the kingpins in manufacturing, and importing Brass Plumbing Fittings, Brass
Ingots, Brass Pipe inserts and Brass Sanitary fittings for export only. With a strong
business immune, we have a fine fusion of up-graded technology and a well-built team of
experts that can give a dynamic solution to your new innovative ideas. Our constant focus
to proffer best quality products at a reasonable cost has made us to specialize in
manufacturing premier quality sanitary fittings, plumbing, and Brass Pipe inserts.
"Customer is a crowned head of our business" is our success
mantra that has helped us to expand our reach and build a good rapport with our customers
from varied industries across the globe. We have a strong customer base from India to
Gulf, Middle East and now have increased our reach to Europe and America.
We have established a state-of-the-art foundry that has a daily
capacity to produce tons of brass solids and hollow bars. Formulating the concept of
‘everything in one roof, we have developed in house forging and machine turning
facilities. Cultivating a sound vendor management and supply chain operations in the
international market have been a baseline for our good business relationship with the
suppliers and scrap processors.
KEY EVENTS AND MILESTONES IN THE HISTORY OF OUR COMPANY:
The following table sets forth the key events and milestones in the
history of our Company, since incorporation:
| Year |
Change |
| 2016 |
Consolidation of accounts, assets and liabilities of the two
Partnership Firms namely Pooja Metal Industries‘ and Pooja Precision Products‘
and conversion into a Public Limited Company in the name and style of Poojawestern
Metaliks Limited‘ |
| 2017 |
Acquisition of the Partnership Firm namely Western Recycling
Company via Slump Sale. |
| 2017 |
Started Unit II is situated at Plot No. 665, GIDC, Industrial
Area, Phase II, Dared,Jamnagar 361 004. |
| 2020 |
Investment in Subsidiary Company i.e. Sierra Automation
Private Limited (formely known as CBZ Recycling Private Limited) Issuing Bonus Shares in
ratio of 1:1 (Issuing of 1 Equity Shares for every 1 Equity Share held) |
OUR PRODUCT RANGE FOR MANUFACTURING:
We sale Brass Products under different Brand names:
| Sr. No. Brand |
Name Products |
| 1. P Alloy |
Brass Ingots |
|
Brass Billets |
|
Brass Bars |
|
Hex/ Round / Square Rods |
|
Section Hollow |
| 2. P Fit |
Brass & Chrome Pipe Fittings |
|
Pipe Clamps |
|
Regular CP & Brass Fittings |
| 3. P Fix |
Brass Moulding Inserts, Adaptors & Fittings |
| 4. P Max |
Brass Compression Fittings |
|
Brass Pex Fittings |
|
Brass Hose Fittings |
|
Brass Gas Fittings |
| 5. P Perfekt |
CNC VMC Machine Tunred |
|
Variable Parts |
Alloys
We sale Brass Ingots, Brass Billets, Brass Bars, Hex/ Round/ Square Hod
& Section Hollow under the brand name of P-Alloys.
Our Product Range for Trading
We are engaged in trading of brass honey and brass scrap. We generally
procure containers of those from international as well as domestic market and sell it
domestically.
Our Product Range for Unit II
We manufacture Brass & Chrome sanitary fittings, Brass insert and
adapter for CPVC pipes & PPR pipe fittings, CNC, SPM and VMC turned.
OUTLOOK:
Our company is a growing business with a promising future. We are
well-positioned to capitalize on the expanding demand for brass products in India and
around the world. We are committed to providing high-quality products and services to our
customers, and we are dedicated to sustainable manufacturing. Our company is ISO-certified
and has a positive customer satisfaction record. Our products are used in a variety of
industries, including automotive, construction, and electrical & electronics.
We are a leading manufacturer of brass inserts, fittings, turned parts,
and alloys. We are currently expanding our production capacity to meet the growing demand
for our products. We are also investing in research and development to develop new
products and applications for brass. We are committed to expanding our domestic and global
footprint and strengthening our brand.
We believe that our company has a lot of potential for future growth in
the brass industry. We have strong brand equity, a varied product portfolio, and a clear
understanding of our target markets. We are taking steps to capitalize on these growth
drivers, including:
| Developing new products that meet the needs of our customers and
manufacturers. |
| Investing in research and development to improve the quality and
efficiency of our manufacturing processes. |
| Expanding our distribution network to reach more customers. |
| Improving our marketing and sales strategies to reach more customers and
increase brand awareness. |
| Improving our customer service to ensure that our customers are satisfied
with our products and services. |
These steps will help us to strengthen our competitive advantages and
achieve our growth goals.
OPPORTUNITIES AND THREATS:
India is one of the leading country to manufacture and export of brass
products. Main producer and supplier of this brass products in gujarat and especially
Jamnagar, where the head office and the manufacturing unit of the company is situated.
Jamnagar is known as city of high quality custom brass parts and
accessories. Jamnagar imports 95% 0f scrap from Europe, America and other countries.
Jamnagar has more than 2000 small to large brass parts unit manufacturing customized brass
parts in terms of size, dimension, material and standards. All brass parts are adhering to
swiss, DIN. JIS. BS, and other international standards as per customer specilication.
The brass industry is expected to grow in the coming years, driven by
the increasing demand for brass in a variety of applications. Some of the key
opportunities for the brass industry, which are advantages to the company, are as follows:
The growing demand for brass in emerging economies, such as China and
India. These economies are experiencing rapid economic growth, which is leading to an
increase in demand for infrastructure and other products that require brass.
The increasing use of brass in renewable energy applications, such as
solar panels and wind turbines. Brass is a good conductor of heat and electricity, making
it ideal for use in these applications.
The development of new and innovative applications for brass, such as
3D printing. 3D printing is a rapidly growing technology that is opening up new
possibilities for the use of brass.
However, the brass industry is also facing many challenges, some of the
key challenges which acts as threats to the Company are as folows:
The brass parts industry is an intermediate industry, supplying to a
range of Industries that use brass as a component. This includes electronics, pneumatics,
hydraulics and more. The growth of the brass parts India, hence, depends on the growth of
the industrial sector overall. The defining news here in the recent years has come from
both the domestic and intemational sector.
The volatility of raw material prices. The price of copper, the main
raw material used to make brass, can fluctuate significantly, which can impact the
profitability of the industry.
The increasing competition from substitutes, such as plastics and
aluminum. These materials are often less expensive than brass and can be used in a variety
of applications.
The need to comply with environmental regulations. The brass industry
is subject to a number of environmental regulations, which can increase the cost of
production.
The company has taken a number of steps to mitigate the risks it faces,
including diversifying its customer base, passing on price fluctuations to its customers,
and investing in research and development. These initiatives have helped the company to
reduce its exposure to risk and to improve its resilience.
The companys customer base is diversified across a number of
industries, which helps to reduce the risk of a sudden decline in demand from a customer
or industry. The company also passes on price fluctuations to its customers, which helps
to protect its margins. Additionally, the company invests in research and development to
develop new products and technologies, which helps to keep it ahead of the competition.
The company is committed to taking new initiatives in order to overcome
all the risks and threats it faces and to succeed in the long term. These initiatives will
be focused on further diversifying the customer base, developing new products and
technologies, and improving operational efficiency.
RISK AND CONCERNS:
The Brass market has witnessed steady growth in recent years and is
anticipated to maintain this positive progression until 2030. One notable trend within the
Brass market is the growing preference for sustainable and eco-friendly products. Another
significant trend in the Brass market is the escalating integration of technology to
enhance product quality and efficiency. Cutting-edge technologies like artificial
intelligence, machine learning, and blockchain are being leveraged to develop innovative
products that outperform traditional alternatives in terms of effectiveness and
efficiency.
Overall, the Brass market is poised for continued expansion in the
coming years due to the increasing demand for sustainable and innovative products, as well
as the widespread adoption of technology. By 2030, the global Brass market size is
projected to reach multimillion figures, displaying an unexpected compound annual growth
rate between 2023 and 2030 when compared to the figures observed in 2021.
The brass industry in India is facing a number of threats and risks,
including the volatility of raw material prices, competition from substitutes,
environmental regulations, trade restrictions, labor shortages, and cybersecurity threats.
These threats and risks could impact the long-term sustainability of the industry. The
brass industry is taking steps to mitigate these threats and risks, such as investing in
research and development, complying with environmental regulations, and investing in
automation and training.
Our company is not immune to these risks either and faces a number of
risks such as volatile raw material prices, a high-volume and low-margin business, export
dependency, increasing competition, adapting to changes in industry trends, strict quality
requirements, and a stringent working capital cycle. However, the company has done its
best to mitigate these risks by diversifying its customer base, passing on price
fluctuations to its customers, and investing in research and development. The company will
continue to take new initiatives in order to overcome all the risks and threats and to
succeed in the long term.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY:
The company has a comprehensive system of internal financial controls
that is appropriate for its size and operations. This system ensures timely and accurate
financial reporting, the safeguarding of assets, and compliance with all applicable laws
and regulations. The companys internal auditors regularly review the internal financial
control system to ensure its effectiveness, and any necessary changes or suggestions are
incorporated into the system. The internal audit reports are also reviewed by the
companys audit committee.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL
PERFORMANCE:
The key strategy will be focused around:
1. Financial strength & liquidity
2. Professional Management
3. Timely completion of Orders
4. Customer care
5. Brand Equity
Financial Performance and Review of Operations:
(Amounts in Lakhs)
| Particulars |
Standalone |
Consolidated |
|
FY 2022-23 |
FY 2021-22 |
FY 2022-23 |
FY 2021-22 |
| Revenue from operations |
3117.90 |
2081.65 |
3117.90 |
2081.65 |
| Other income |
58.65 |
23.76 |
58.65 |
23.76 |
| Total Income |
3176.55 |
2105.41 |
3176.55 |
2105.41 |
| Less: Total Expenses before Depreciation, Finance Cost and
Tax |
2807.04 |
1890.92 |
2807 |
1890.92 |
| Operating Profits before Depreciation, Finance Cost and
Tax |
369.51 |
214.49 |
369.55 |
214.49 |
| Less: Finance cost |
108.18 |
56.01 |
108.18 |
56.01 |
| Less: Depreciation |
113.82 |
51.97 |
113.82 |
51.97 |
| Profit / (Loss) Before Tax |
147.51 |
106.51 |
147.55 |
106.51 |
| Less:- Current Tax |
30.20 |
36.00 |
30.20 |
36.00 |
| Less: Deferred Tax |
10.95 |
(6.63) |
10.95 |
(6.63) |
| Less:- MAT Credit |
- |
- |
- |
- |
| Profit/ (Loss) after tax (PAT) |
106.36 |
77.14 |
106.40 |
77.14 |
| Earnings per Equity Share |
1.05 |
0.76 |
1.05 |
0.76 |
MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS:
The companys relationship with its employees remained cordial and
harmonious. The company considers its employees to be its most valuable asset, and they
have been the driving force behind the companys growth and expansion. The company
acknowledges that its employees are its principal assets, and it has continued to make
efforts to build a diverse and inclusive workforce.
As of March 31, 2023, the company had a total of 60 employees on its
rolls, including factory workers. The company will continue to create opportunities and
ensure that it recruits diverse candidates without compromising on merit.
KEY FINANCIAL RATIOS:
| Ratio |
Figures As At 31.03.2023 |
Figures As At 31.03.2022 |
% Change From Last Year |
Explanation for Change in Ratio (for more than 25% in
comparison with last year) |
| Current ratio |
1.39 |
1.46 |
-4.53% |
- |
| Debt- Equity Ratio |
1.15 |
1.12 |
2.62% |
- |
| Debt Service Coverage ratio* |
2.03 |
1.77 |
14.76% |
- |
| Return on Equity ratio |
0.09 |
0.07 |
27.00% |
Due to Company has achieved higher profit in current year. |
| Inventory turnover ratio |
3.16 |
2.24 |
40.75% |
Due to company has 1.5x growth in sales. |
| Trade Receivable Turnover Ratio |
7.10 |
6.78 |
4.67% |
- |
| Trade Payable Turnover Ratio |
22.43 |
22.16 |
1.23% |
- |
| Net Capital Turnover Ratio |
5.78 |
4.41 |
30.93% |
Due to company has 1.5x growth in sales. |
| Net Profit ratio |
0.03 |
0.04 |
-7.94% |
- |
| Return on Capital Employed |
0.21 |
0.14 |
43.47% |
Due to Company has achieved higher EBIT in current year. |
CAUTIONARY STATEMENT:
Statement in this report describing the Companys objectives
projections estimates and expectation may constitute "forward looking statement"
within the meaning of applicable laws and regulations. Forward looking statements are
based on certain assumption and expectations of future events. These Statements are
subject to certain risk and uncertainties. The Company cannot guarantee that these
assumption and expectations are accurate or will be realized. The actual results may
different from those expressed or implied since the Companys operations are affected
by many external and internal factors which are beyond the control of the management.
Hence the Company assumes no responsibility in respect of forward-looking statements that
may be amended or modified in future on the basis of subsequent developments information
or events.
Registered office: |
|
For, Poojawestern Metaliks Limited |
Plot No. 1, Phase II, GIDC, |
|
|
Dared Jamnagar- 361004, Gujarat |
|
|
|
SD/- |
SD/- |
|
Anil Devram Panchmatiya |
Sunil Devram Panchmatiya |
Date: September 02, 2023 |
Whole time Director |
Chairman and Managing Director |
Place: Jamnagar |
DIN: 02080763 |
DIN: 02080742 |
+91-9892691696
