1. COMPANY OVERVIEW
The Company officially became a public limited entity in November2011.
As a demerger,of Photo Films business of Jindal Poly Films Limited into the company.,
resulting in the establishment of Universus Photo Imagings Ltd. This transition, effective
from April 1st, 2019, also included the integration of Photographic products and related
ventures under Universus Photo Imagings Ltd. Prior to this period, the Company was not
engaged in any manufacturing or business activities.
Presently, the Company operates a cutting-edge manufacturing facility
for X-Ray Films and other assorted products situated in Dadra (UT-Dadra and Nagar Haveli).
2. GLOBAL ECONOMY
In 2022-23, the global economy faced significant headwinds including
the Omicron variant, Russia-Ukraine conflict, unprecedented global monetary tightening,
and the slowdown in China. Despite these factors, the economic outcome was more positive
than projected.
However, vulnerability defines the economic landscape in the upcoming
fiscal year. The International Monetary Funds (IMF) latest World Economic Outlook report
(April 2023) forecasts a moderation in global growth to 2.8% in 2023, down from 3.4% in
2022.
Emerging markets (EMs) are anticipated to outpace developed markets
(DMs) in 2023, reversing the trend of the past two years. This uptick will likely be
driven by Chinas recovery, facilitated by its departure from a zero-Covid policy, and by
robust growth in India and Indonesia, underpinned by domestic demand.
Simultaneously, the concerted tightening of monetary policies by
numerous central banks is expected to bear fruit, steering inflation back towards targeted
levels. However, the economic scenario isnt without its potential pitfalls. Persistent
inflation, particularly in advanced economies, the potential for U.S. bank failures to
ripple out to the broader global economy, and the intensification of the ongoing Ukraine
conflict pose significant downside risks.
In 2022-23, most DM central banks implemented an aggressive rate hike
strategy, with the U.S. Federal Reserve increasing the policy rate by a cumulative 425
basis points, reaching between 4.25% and 4.50%. This was the fastest pace of tightening
witnessed since the early 1970s. As inflation reaches its peak, major DM central banks are
projected to decelerate their rate hike schedules. However, with inflation likely to
persist above target levels, policy rates may remain elevated for an extended period.
3. INDIAN ECONOMY
The IMFs World Economic Outlook report (April 2023) predicts a slight
slowdown in Indias economic growth from 6.8% in 2022-23 to 6.1% in 2023-24, due to
tightening financial conditions and global uncertainties. Nevertheless, robust domestic
fundamentals and political stability enable India to maintain its status as the
fastest-growing major economy for the third year running. The projected economic growth is
attributed to strong domestic demand, healthy consumption growth spurred by recovery in
consumer services and increased purchasing power, as well as strengthened investments
boosted by private capex and government capital spending. Despite the challenges to
exports from slow global growth, Indias increasing share in global manufacturing exports
and service exports growth offer some resilience.
Notwithstanding global risks like the Russia-Ukraine conflict and price
volatility, India stands ready to enter a phase of rapid, sustained growth, especially
with increased private investments in manufacturing and effective utilisation of its
service sector advantages. Indias promising position as a significant global manufacturer
is evident in rising exports and capacity expansions. This potential is facilitated by
government initiatives aimed at reducing logistics costs and improving the ease of doing
business. Overall, these elements suggest a bright future for the Indian economy.
4. INDUSTRY OVERVIEW
For one who has been practicing radiology for the last 42 years and
seen the evolution of radiology from single x-ray machines, with dark room processing and
dripping films, to digital radiography and cross-sectional imaging techniques like USG,
CT, and MRI, it is not difficult to predict how radiology will develop over the next 10
years and what will be the fate of practicing radiologists and the various imaging
modalities.
The turn of the century witnessed a worldwide transition from
conventional screen-film radiography to CR and gradually over the last decade to DR. After
NDHM government sector is also thinking for digitisation.
Analog wet films market size was just 15 lakh sqm per annum last
financial year which is just 6% of total XRay film business of India. But still there is
some market for Analog business as we are seeing still analog machines are selling from
some local manufacturers in tier 3 and 4 cities but now most of the users are only
technician level.
5. BUSINESS REVIEW
The Company is manufacturing, selling, distributing, converting and
producing, X-Ray films and NTR films in Matt & Glossy finish. NTR Films being used for
photo albums, certificates, playing cards, Gift Cards, visiting cards, calendar, menu
cards, wedding cards & modelling portfolio.
The Company procures Jumbo Rolls of the X-Ray films and slits them into
different sizes at its slitting and packaging unit in Dadra. The unit has a monthly
capacity of approximately 3 lakh sqm. Further, due to shrinking business of X-Ray Films
Business and increase in digitalization, it may be difficult for the Company to sustain in
market unless new products will be launched in the future and the Company is working on
the same.
6. FINANCIAL PERFORMANCE
The following are the key financial highlights for the period ended 31st
March 2023.
(In Rs Lakhs.)
| Particulars |
2022-2023 |
2021-2022 |
|
Standalone |
Consolidated |
Standalone |
Consolidated |
| Total Income |
7,685.91 |
76,85.91 |
52,843.20 |
52,843.20 |
| Profit from Operations (before Excep- tional Items and
Tax) |
4,023.42 |
3996.53 |
48,293.09 |
48,293.10 |
| Exceptional Items +/(-) |
- |
- |
- |
- |
| Share of Net Profit/(Loss) of associate |
- |
(7,947.48) |
- |
>11,432.90 |
| Profit before tax |
3,996.53 |
-3,950.95 |
48,249.68 |
59,682.58 |
| Profit after tax for the year |
3,500.70 |
-4446.78 |
40,002.10 |
51,435.00 |
Note: After Demerger of Photo Films business for Jindal Poly Films Ltd.
to Universus Photo Imagings Ltd. Photographic product and other is part of Universus Photo
Imagings Ltd. w.e.f 1st April, 2019. Before that period Company was not doing any
manufacturing activities/Business.
7. CHANGES IN KEY FINANCIAL RATIOS
The details of changes in key financial ratios as compared to previous
Financial Year are stated below:
| Sr. No. Particulars |
2022-23 |
2021-22 |
Change % |
| 1 Debtors Turnover Ratio |
20.89 |
21.88 |
-4.54 % |
| 2 Inventory Turnover Ratio |
2.22 |
3.47 |
-36.05% |
| 3 Current Ratio |
254.10 |
69.54 |
265.42% |
| 4 Net Profit Margin (%) |
81.01 |
712.27* |
-88.63% |
| 5 Return on Net Worth (%) |
6.76 |
85.08 |
-92.05% |
• There was dividend income of Rs. 459.03 crore from foreign
Associates in the financial year 2021-22 it is not there in financial 2022-23
8. RISKS AND CONCERNS
Presently the Company is engaged in the business of manufacturing,
selling & distributing X-Ray films and due to shrinking business of X-Ray Films
Business and increase in digitalization, it may be difficult for the Company to sustain in
market unless new products will be launched in the future.
In addition to above said, the Company has identified following
categories of risks associated with the business: political, social, and economic risks,
market risk, technology selection risk, capital structuring risk, exchange and interest
rate risk, credit risk, liquidity risk, foreign currency risk, and commodity price risk.
The Management evaluates these risks prior to making decisions in these areas.
9. OPPORTUNITIES AND THREATS OPPORTUNITIES
• The companys capacity to leverage and embrace
technological advancements in order to effectively compete with other healthcare service
providers.
• The market is anticipated to gradually expand as government and
private segment hospitals resume their outpatient department services.
Additionally, an increasing awareness of medical insurance is poised to further enhance
business prospects.
• The companys consistent commitment to investing in new
medical technologies and maintaining them in alignment with their anticipated lifespan.
THREATS
• Occurrences such as the Russia-Ukraine conflict and evolving
regulatory changes introduce market uncertainties and pose challenges in maintaining
compliance.
• The swift shifts in consumer preferences, economic
circumstances, and global trade dynamics necessitate a capacity for adaptability to ensure
sustained growth.
• Covid pandemic has created havoc on business, need to explore
different technology to grow.
10. SEGMENT PERFORMANCE
The Company has one business segment namely photographic product which
recorded revenue of Rs. 4321.55 lacs and Profit after tax of Rs. 3500.70 lacs in F. Y
2023.
11. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES
The company is having sufficient industry professionals to carry out
its operations and follows good management practices. These are basically its human
resources assets and integral to the Companys ongoing success. They have played a
significant role and enabled the Company to deliver superior performance. The total number
of employees in the Company stands at 52.
12. INDUSTRIAL RELATIONS
During the year under review, harmonious industrial relations were
maintained in your Company.
13. INTERNAL CONTROL SYSTEM
The company has a proper and adequate system of internal controls and
that all assets are safe guarded and protected against loss from unauthorized use or
disposition, and all the transactions are authorised, recorded and reported correctly.
Management continuously reviews the internal control systems and procedures to ensure
orderly efficient conduct of business. The review included adherence to the management
policies and safeguarding the assets of the company.
The company ensure that adequate systems are in place for an effective
internal control. The audit findings are reported on a quarterly basis to the Audit
committee of the Board headed by a non-executive independent Director.
14. SUSTAINABILITY INITIATIVES AND CORPORATE SOCIAL RESPONSIBILITY
Our company places a strong emphasis on environmental responsibility by
implementing sustainable practices throughout our operations. This includes energy
conservation, waste reduction, and water management strategies. We also engage with local
communities through social development programs focusing on education, healthcare, and
environmental awareness. This commitment to sustainability creates lasting value for
stakeholders and contributes to a greener, more socially responsible future. To learn
more, refer to our BRSR and CSR Annual Report for comprehensive insights into our
performance and financial status.
15. RESEARCH AND DEVELOPMENT
Research and development (R&D) play a crucial role in our
companys growth and innovation. We have a dedicated R&D team that continuously
explores new technologies, materials, and processes to enhance our product offerings. Our
R&D initiatives focus on improving product quality, developing new applications,
products to address emerging market trends. Through collaboration with industry experts,
academic institutions, and customers, we stay at the forefront of technological
advancements. By investing in R&D, we aim to meet evolving customer needs, drive
product innovation, and maintain our competitive advantage in the market.
16. CAUTIONARY STATEMENT
Statement in this Management Discussion and Analysis describing the
Companys objectives, projections, estimates and expectations may be a forward
looking statement within the meaning of applicable laws and regulations. Actual results
might differ materially from those either expressed or implied.
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