Shivagrico Implements Ltd Management Discussions

A. INDUSTRY STRUCTURE AND DEVELOPMENTS:

The Export demand in Agri Hand Tools & Semi-finished steel improved from Rs.622.54 Lacs to Rs.902.19 Lacs an increase of 45% as compared to last year. However home market remained volatile.

Looking to the worldly market scenario affected by Ukraine, Hamas war in Europe exports are not encouraging. The company is envisaging similar export volume. The home market is also deeply explored.

B. 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.

C. THREATS

(i) Due to overseas wars the overseas freight rates are being hiked substantially which may affect the exports.

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

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

D. SEGMENT 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 9687.740 M.Tons as compared to previous year production of 10202.551 M.Tons showing a decrease of 5%. However the forging production was increased by 39% in the present year. Both the production figures include conversion activity also.

Rolling & Other products sale almost remains the same. However forging product sale increased by 34%. This years overall sales increased by 7.4%.

However income from services of the conversion and job work decreased by 14% during the year which is the main cause of reduction in profit from Rs.546.66 Lacs to Rs. 463.74 Lacs.

Turnover

The turnover of the Company for the year was Rs. 4360.29 Lacs as compared to Rs.4193.03 Lacs increased by 4% approximately from last year.

Operation Profit (PBIDT) & Margin

Profit before Interest, Depreciation and Tax of the Company for the year is Rs. 261.08 Lacs as against Rs. 256.69 lacs in the corresponding previous year an increase of Rs. 4.39 Lacs which is approx. 1.71%

Power & Fuel Cost.

The Power and Fuel cost decreased to Rs. 324.90 Lacs from Rs. 349.97 Lacs which is lower by 7.16% due to decrease in Rolling production.

Employees Cost

This year Employees cost of Rs. 459.32 Lacs increased from Rs. 420.63 lacs from the previous year i.e. increased by 9.20% mainly due to higher forging production activity.

Interest

The Company has incurred interest cost of Rs. 109.63 lacs as against Rs.103.02 lacs in the previous year increased by 6.42% in the year.

Profit before Tax

The Profit before tax for the year is Rs. 16.20 lacs as compared to the profit for the year 2023 of Rs. 15.03 increased by approx. 7.78%.

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.

F. HUMAN RESOURCES / INDUSTRIAL RELATION

The Company has established team working of all employees at various levels at factory site. The Company is managed under the guidance of its Executive 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.

D. 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.