uniply industries ltd share price Management discussions

WORLD OVERVIEW

Global economy witnessed a decline in industrial production which is reflected in the overall global GDP growth of 2.9% in 2019, down from 3.6% in 2018. Largely, driven by the depleting economic relations between USA and China and the expanding geopolitical stand-off combined with trade war between several large economies of the world. Third and fourth quarter of 2019-20 was also impacted by the outbreak of COVID 19 pandemic.

INDIAN ECONOMIC OVERVIEW

India continued to retain its position amongst the fast-growing economies in the world. However, 2019-20 has been a year of slowdown which is in line with global economic cues. After growing at 6.1% in 2018-19, the Indian economy is estimated to have grown at 4.2% in 2019-20. Private consumption, the prime driver of the economy with about 60% share, was estimated to have shown a significant slowdown impacting the overall growth rate for the economy. The commencement of the US-China trade war has opened new opportunities for India but COVID 19 has put a dampener on all such potential opportunities. The rupee has remained rangebound with a weakening bias which makes domestic manufacturing for exports lucrative. The macro economic environment, however has remained weak for larger part of the financial year and the Indian Economy has demonstrated sustained sluggishness in 2019-20. Despite the governments policies on pushing larger spending on infrastructure the macro economic conditions on the back of global trade wars and COVID 19 pandemic has impacted the overall business environment. (Source: CSO, Economic Times, PIB, World Bank)

ABOUT THE COMPANY

Since 2016, Uniply is headquartered in Mumbai with a presence across major cities in India. The Company has two business segments - interior wood products and construction. The interior wood products business enjoys an international presence with an established based in Kuala Lumpur with extensive certifications (ISO 9001:2008, ISO 14001 and OHSAS 18001). The Company is driven by a vision of creating innovative interiors and robust construction. The interior wood products business carries an impressive credential and has the experience of delivering marquee projects for established large business houses across India. The Companys construction business is executing two turnkey projects each in Telangana and Karnataka (design-to-build). Construction business creates an optimal synergy for the overall business of the group.

FINANCIAL REVIEW, 2019-20

- Consolidated income for the year was Rs. 336.52 crores compared to Rs. 504.80 crores in the previous fiscal.

- Consolidated profit before tax for the year was (Rs. 34.48 crores) compared to Rs. 59.20 crores in the previous fiscal.

- Consolidated profit after tax for the year was (Rs. 28.42 crores) compared to Rs. 39.43 crores in the previous fiscal.

The Company has utilized the year 2020 to make itself agile and competitive. In this process, the company has undertaken a process to trim low margin businesses, make its work force competitive, productive and lean. This has resulted in reduced overall business for the company and has also helped in bringing down its overall cost especially fixed costs for the business.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has adequate system of internal control which is line with the size and nature of its operations to provide reasonable assurance that all assets are safeguarded, transactions are properly authorised, recorded and reported properly, applicable statutes and corporate policies are duly complied with.

HUMAN RESOURCES

People are the primary source of competitiveness for the Company and the Company continues to focus on people- development by leveraging technology and promoting a continuously learning human resource base to unleash their potential and fulfill their aspirations. The Company recruits judiciously through industry contacts, newspaper advertisements and consultancies. During the year the Company has implemented a process to make its human work force agile, lean and competitive.

QUALITY MANAGEMENT SYSTEM

The Company continues to lay a keen emphasis on qualitative excellence to ensure total customer satisfaction. The Companys mission is to provide customers with products that match international standards and surpass their expectations.

CAUTIONARY NOTE

The above statements are as perceived by the Directors based on the current scenario and the input available. Any extraneous developments and force majeure conditions may have an impact on the above perceptions.

ACKNOWLEDGEMENTS

The Directors place on record their deep appreciation to employees for their hard work, dedication and commitment. The Board places on record its appreciation for the support and co-operation your Company has been receiving from its suppliers, retailers, and all its business partners. The Company will continue to build strong links with its business associates which is consistent with consumer interests. The Directors also take this opportunity to thank all investors, clients, vendors, banks, governmental agencies and regulatory authorities and stock exchanges for their continued support.

For and on behalf of the Board of Directors

Keshav Narayan Kantamneni

 

Chairman

Place: Chennai

Date: 24.04.2021