(Including ManagementRs.s Discussion & Analysis Report)
Your directors have pleasure in presenting their Sixty Seventh Annual Report, together
with the Audited Financials of the Company, for the year ended March 31, 2023, as follows:
FINANCIAL RESULTS (STAND ALONE)
(Rs. in Crores)
|
|
2022-23 |
2021-22 |
1 |
Sales (Net of discounts) |
2625.72 |
2532.15 |
2 |
Other Income |
42.85 |
34.98 |
3 |
EBITDA (Before Exceptional Items) |
402.24 |
441.21 |
4 |
Profit Before Tax and Exceptional Items |
349.52 |
395.52 |
5 |
Exceptional Items |
- |
- |
6 |
Profit Before Tax |
349.52 |
395.52 |
7 |
Tax Provision |
89.36 |
101.87 |
8 |
Profit After Tax |
260.16 |
293.65 |
9 |
Other Comprehensive Income |
(1.75) |
(0.73) |
10 |
Total Comprehensive Income |
258.41 |
292.92 |
11 |
Transfer to General Reserve |
26.00 |
29.00 |
12 |
Surplus carried to Balance Sheet |
232.41 |
263.92 |
REVIEW OF PERFORMANCE/HIGHLIGHTS
The global economy has been continuously under stress throughout the year with
the global inflationary trends due to the continued geo-political crisis. While the Indian
economy showed its resilience due to its strong macroeconomic fundamentals the impact on
general inflation especially on account of fuel prices was also felt in India which took a
toll on some consumer sectors like domestic kitchen and home appliances.
While the first quarter saw a significant growth due to lower base of the
comparable quarter of FY22 impacted by Omicron, the growth in subsequent quarters was
tepid due to the aforesaid factors.
All channels were active throughout the year though the online channels felt the
impact of re-emergence of offline channels. Smaller players were able to get into online
platform with lower price points especially in entry level products. The inflation had
higher impact on low-income group than on the middle & large income groups.. Under
these circumstances the domestic sales saw a growth of 5% from Rs. 2434 Crores to Rs.2556
crores.
Exports were impacted due headwinds caused by geo-political situation,
tightening global financial conditions, and slowing global economy. This resulted in a
drop in export sales from Rs. 98 crores to Rs. Rs.69.70 Crores.
Your Company continued its focus on digitizing its sales process and in its
innovative marketing strategies which helped it to maintain its sales growth against the
tough market conditions. Your company continued with its efforts on enlarging its customer
base in rural, large-format and online channels thus de-risking from dependence on a few
customers in each of these channels.
Your company launched various innovative products in all categories during the
year. The Svachh range of Gas Stoves and Pressure Cookers on Svachh platforms maintained
its momentum in the market.
The commodity price increase which hit the roof in the previous year
softened/stabilised during the year though not significant compared to the price increases
in the previous year and the prices were at a level higher than the pre-pandemic level.
Due to high value inventory carried forward from the previous quarters till September 30,
2022 the benefit of softened prices did not fully accrue to your Company. The inflationary
trends and adverse exchange resulted in increase in key raw & packing material costs
and in manufacturing costs.
However, your Company was able to maintain a healthy margin through improved
efficiencies in operations. Against the pressures on lower sales growth, increase in cost
of operation, your Company delivered EBITDA of Rs. 402 crores (PY Rs. 441 Crores) and
Profit before tax at Rs. 349.5 Crores (PY Rs.395.5 Crores). Operating EBITDA margin was at
a healthy level of 15.3% (PY 17.4%).
The depreciation charge was higher at Rs.47.7 crores (PY Rs. 41.7 Crores) due to
investment in fixed assets.
The Net Profit after Tax was at Rs. 260.2 Crores (PY Rs. 293.7 Crores).
The standalone EPS (face value of Rs.1/-) was at Rs. 18.77 (PY Rs. 21.18)
As stated in the past years, your company does not follow a stand-alone margin
led policy but is focussed on growth with a fair long-term return on capital employed.
Operating ROCE stood at 35.9% (PY 41.7%) on expanded asset base as compared to the
previous year.
The Company is debt-free and carried a comfortable free cash of over Rs. 840
Crores (including short term
Liquid investments) as on March 31,2023.
The consolidated turnover and profit before tax of the Company and its
subsidiaries amounted to Rs. 2777 Crores (PY Rs. 2722 Crores) and Rs. 343 Crores (PY Rs.
411 Crores) respectively.
As you are aware in the Q4 of previous year your Company made a strategic
investment in Ultrafresh Modular Solutions Ltd (Ultrafresh) engaged in the business of
Modular Kitchens and kitchen appliances having many franchisee outlets across India. In
early Jan 2023 your Company increased its shareholding in Ultrafresh from the earlier
40.8% to 51% and thus Ultrafresh became a subsidiary of your Company from that date. The
financials of Ultrafresh has been considered in the consolidated financial statements
appropriately for these periods.
Your Board of Directors consider the performance of your Company during the year as
commendable given the recession and inflationary environment. Your Company continues to
maintain its leadership in market share both in value & volume terms across major
product categories.
Your directors are happy to recommend a dividend of Rs. 6.00 per share of face value
Rs. 1/- each for FY 23 (PY Rs. 6.00 per share of face value Rs. 1/- each).
A detailed analysis is provided under the section Rs.ManagementRs.s Discussion and
AnalysisRs. forming part of this DirectorRs.s Report.
AWARDS AND RECOGNITIONS
Your Company continued to be recognized by various agencies for its high-quality
performance under various parameters. During the Financial Year 2022 - 23, your Company
bagged the following awards/recognitions.
"Great Place to Work" by Great Place to Work? Institute, India
"Top 50 Companies with Great Managers" by People Business in
partnership with The Economic Times
"Top 100 Great Managers" by People Business in partnership with The
Economic Times
"Leading CIO of the year for Digital Transformation" by CII - Center
for Digital Transformation, India.
"CIO100" award for the innovative CIO practices by Foundry (Formerly
International Data Council (IDC))
"CSO100" award for the Cyber resilience practices by Foundry (Formerly
International Data Council (IDC))
"CIO TRENDSETTER AWARD 2022" by ELETS TECHNOMEDIA
"Eminent Jury member for SAP Ace award" by SAP Indus
Superbrand 2023 by Superbrands India Media Private Limited
The Best of BharatRs. Awards 2022 for Kitchen Appliances category by The e4m
Pride of India
Most Innovative Product of the Year - Svachh Pressure Cooker & Gas Stove by
Asia Innovative Congress & Awards
Best Kitchen Appliances Brand 2022 by National Feather Awards
Outstanding citizen Award to Mr.Chandru Kalro, CEO by Sindhi Chamber of Commerce
Best Awareness Creating Campaign for Social Cause by The Mommy 2022 Awards
Zee National Achievers Award - Most Innovative Kitchen Appliance - Svachh Range
Of Gas Stove by Zee Digital
IndiaRs.s Retail Champions award 2022 by Retailers Association of India
National Awards for Marketing Excellence and Brand Leadership by Economic Times
Ascent
Most Admired e-commerce Company of the Year: Marketing and Customer Reach by
IMAGES e-commerce Award 2022
Best Traditional Marketing Campaign Award 2023 for AFA Campaign by Indian
Business Council -Name Awards
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