Shivagrico Implements Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Export demand in Agri Hand Tools and Semi-finished steel went down from Rs.1758.08 Lacs. To Rs.622.54 Lacs. i.e. a drop by app.65% as compared with previous year. This trend is almost in all segments of Iron and Steel and Hand Tools Industries, looking to this scenario in export market, company is spreading its sales network to explore the home market.

OPPORTUNITIES

(i) Roof Top Solar plant is generating power satisfactorily and has contributed substantially in reducing power cost.

(ii) The company is exploring new overseas and home market along with customized products in forging and Rolling segments

(iii) In association with other parties company is participating in developing Defense related profiles.

THREATS

(i) Due to Ukraine war overseas customers have slowed their purchases and also facing financial crunch. This may result in lower volume in Export.

(ii) Lower demand may result in tough competition in Export and Local market.

(iii) Skilled and Semi-Skilled labour Shortages may affect the working.

SEGMEANT WISE PERFORMANCE

Your company has two segments viz.

1. Rolling and Forging Segment.

2. Others

Overall production in Rolling Division for the present year was 10202.551 M. Ton as against 11277.336 M.Ton in the corresponding previous year, showing a drop in production by 9.5%. Similarly over all Forging Production was 1764.73 M.Ton as against production of 2422.00 M.Ton which was lesser by 27% as against previous year. Both the above Production figures include of Conversion Activity also. Overall Rolling Products Sale increased from Rs.2280.83 Lacs to Rs.2556.46 Lacs which was 12% higher from the previous year whereas the Forging Products Sale were down from Rs.1584.58 Lacs to Rs.717.05 Lacs a decrease of 54.75% as compared with previous year. However, income from Services of the Conversion and Job Work remain almost same as compared with the previous year. The Revenue from conversion charges in the current year was Rs.553.36 Lacs as compared to Rs.540.65 Lacs in the present year.

FINANCIAL AND OPERATION PERFORMANCE

Turnover

The turnover of the Company for the year was Rs. 4193.03 Lacs as compared to Rs.4886.72 Lacs decreased by 14.20% approximately from last year. Operation Profit (PBIDT) & Margin Profit before Interest, Depreciation and Tax of the Company for the year is Rs. 256.69 Lacs as against Rs. 347.06 Lacs in the corresponding previous year a decrease of Rs. 90.37 Lacs which is approx. 40% Power & Fuel Cost. The Power and Fuel cost decreased to Rs. 349.97 Lacs from Rs. 425.35 Lacs which is lower by 17.72% due to decrease in production of Rolling and Forging. Employees Cost This year Employees cost of Rs. 420.63 Lacs decreased from Rs. 521.68 lacs from the previous year i.e. decreased by 19.37% mainly due to lower production and in turn decrease in strength of employees. Interest The Company has incurred interest cost of Rs. 103.02 lacs as against Rs. 94.71 lacs in the previous year increased by 8.77% in the year.

Profit before Tax

The Profit before tax for the year is Rs. 15.03 lacs as compared to the profit for the year 2022 of Rs. 102.76 Lacs decreased by approx. 85.37%. Income Tax The company is not required to provide any tax in this year. However, the Company has provided Deferred tax in the both years.

HUMAN RESOURCES/ INDUSTRAL REALATION

The Company has established team working of all employees at various levels at factory site. The Company is managed under the guidance of its Whole Time Director Mr. Hemant Ranawat who in turn is supported by the office staff senior foreman, supervisors and assistants. Each division has its in charge / foreman who are supported by assistants and workshop staff. The supervisor assists foreman and acts as a link between management Systems and further developed cordial relations. Regular meeting with workers leader maintains harmony. The company has legal consultants to ensure timely compliance with labour law.

CAUTIONERY STATEMENT:

Statement in the management Discussion and analysis describing the Company objectives, projections, estimated and expectation may be ‘Forward looking Statement within the meaning applicable to securities laws and regulations. Actual results could differ materially from those expresses or implied. Important factor that could make a difference to the Companys operation include economic conditions affecting demand / Supply and priced conditions in the domestic and overseas market, changes in the Government regulation. Tax laws and other statutes and other incidental factors.