undefined share price Management discussions


A. Industry Structure and Development:

As you are aware, your Company has been engaged in the manufacture of Extrusion Machinery (for Pipe and Blown Film Extrusion) and Injection Moulding Machinery. As we all know, the year that went by was unique and challenging in every aspect and still continues to do so. We at Windsor were severely impacted by the various challenges posed from time to time. However, with persistent and sustained efforts our Team managed to combat the various challenges and achieve a respectable business performance at the end of the financial year.

B. Opportunities and Threats:

In-spite of the current situation with the Pandemic impact on businesses worldwide, our TEAM continues with its efforts to explore opportunities within this situation. Plastic has once again proved to be the "Go-To" material and this was amply demonstrated during the current Pandemic situation.

With renewed focus and awareness on Hygiene and Safety, we saw a rise in demand for plastic products and thus resulting in increased demands for plastic processing machinery. However, the expectations of our esteemed customers is to have ready stock machines available. This has posed the manufacturers with a challenge on reviewing their resources, reworking their budgets and plans for the coming year/s and also relooking at their existing business models. We at Windsor have taken various initiatives to address these challenges and meet the customer expectations of shorter delivery times.

C. Product Wise Performance :

Gross sales

Product 2020-2021 2019-2020
Extrusion Machinery 14,518.38 12,436.18
Injection Moulding Machine 13,816.45 11,612.01
TOTAL 28,334.83 24,048.19

D. Outlook:

With the "New Normal" being set, we expect a challenging future ahead. We foresee increased demand for our machinery, especially in view of the increasing demand for plastic products (in the current pandemic situation) and constraints/challenges on importing machinery. This opens up a huge opportunity for domestic machinery manufacturers and if we are to cash in, we need to relook at our business strategies, set robust planning processes, be flexible and ensure optimum utilization of all available resources. This calls for new investments, expansion of facilities, upgradation of skillsets and technologies to combat the challenges posed.

E. Segment Information for the year ended March 31, 2021:

Extrusion Machinery:

Pipe Segment: With the thrust and initiatives taken by the government for strengthening the infrastructure segment, we did forecast increased demand for Pipes (PVC and HDPE). However, the growth was not as anticipated due to the pandemic impact wherein new investments were kept on hold / delayed. Further with the increase in PVC resin prices coupled with limited availability did pose a big challenge for new investments and expansions at our customer end. We however remain optimistic and hoping that the resin prices and availability would stabilize in the near future and business would bounce back with growth in the coming years.

Blown Film Segment: Our market share for this product segment has been increasing over the years. Now, with the "New Normal" being set and awareness getting increased towards "Hygiene" and "Safety", we foresee an increasing demand for effective packaging of food products and other items.

With our continued efforts on New developments and customization towards offering complete Turnkey solutions to our end customers, we foresee a bright future for this business in the coming years.

Injection Moulding Machinery:

With successful stabilization and acceptance of our "Two-Platen Machines", the business has been increasing. In-spite of the Pandemic impact, the demand for Injection molding machinery has been increasing especially in view of the constraints on imports of similar machinery. New investments are being envisaged and we foresee a substantial growth in demand over the coming years.

Meanwhile, Windsor continues to explore newer avenues of applications and developing suitable machines and technologies to keep abreast of the competition. Brief Data/Information for segment are given below.

Segment Information for the year ended March 31, 2021:

Particular 2020-21 2019-20
Total Segment Revenue 28,727.91 24,384.28
Total Segment Results 2,019.99 (678.25)
Net Profit/(Loss) Before Taxation 792.08 (3,828.44)
Net Profit/(Loss) After Taxation 1,290.42 (1,376.66)
Other Comprehensive Income/(Expenditure) 10.63 1.60
Total Comprehensive Income 1,301.05 (1,375.06)
Total Assets 53,007.74 51,511.15
Total Liabilities 24,746.07 24,572.73
Total Capital Employed 28,261.67 26,938.42
Total Capital Expenditure 56.51 1,124.39
Total Depreciation 1,343.01 1,356.36

Detailed segment information for the financial year 2020-21 is provided in Notes to Financial Statements.

F. Risks and Concerns:

While we combat and overcome the impacts of an unexpected pandemic over the last one year, we simultaneously have been working on improving our technologies, products and offerings. Continuous developments to overcome technological obsolescence coupled with improving performance parameters have been the focus areas for us at Windsor. A multipronged approach is being envisaged to address and combat the various challenges being posed and minimize risks towards our business.

G. Internal Control Systems and their Adequacy:

With the stabilisation of SAP (Enterprise Software), the company continues its focus to further strengthen the internal controls mechanism. These controls ensure safeguarding of assets, reduction and early detection of fraud and error, adequacy and completeness of the accounting records and timely preparation of reliable financial information. Successful implementation and continuous monitoring / Updation of the various SOPs and Authority Matrix introduced earlier, have strengthened the control and regulatory mechanisms within the organisation.

H. Financial Performance with respect to Operational Performance:

i. The Sales and other income of the company for the year ended March 31, 2021 were Rs. 287.47 Crores as compared to Rs. 255.83 Crores in the previous year.

ii. The Company on a continuous basis sets up policies to exercise cost control and cost reduction programme.

iii. The company has achieved profit after tax of Rs. 1 290.42 Lacs.

I. Key Financial Ratios:

Pursuant to Part B of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Company is required to give details of significant changes in key financial ratios.

The Company has identified the following ratios as key financial ratios:

Particulars Standalone Consolidated
2020-21 2020-21
Debtor Turnover 0.07 0.10
Inventory Turnover 0.18 0.25
Interest Coverage Ratio 1.97 1.56
Current Ratio 0.60 0.70
Debt Equity Ratio 0.16 0.16
Operating Profit Margin (%) 10.41% 9.75%
Net Profit Margin (%) 4.55% 3.52%
Return on net worth (%) 4.60% 3.71%

J. Development in Human resources/Industrial Relations front, including number of people:

The manufacturing activities at Vatva, Chhatral and Italy factories have been in operation for the entire year. Industrial relations have been conducive and cordial for the entire period at all Factories. At the end of the year, the employee strength of the company is 521 Employees (previous year was 520 employees). Various initiatives are being taken continuously to Up-skill and strengthen the Human resources within the company.