Sales Growth

In 2009-10, the Company reported a gross sales of Rs.171.68 crores; an increase of 17.90% over the previous year. The tempo of growth is expected to be maintained in the coming year due to the improved business situation and better operating efficiency.

Profit & Margin Growth

The  profit  from  operations  before  depreciation,  interest  and  tax, was  Rs.38.12 crores  as  against  Rs.27.06 crores; a healthy growth of 40.9%. This profit growth is expected to be maintained in the future. The Management is taking steps to improve the performance of the Company. 

Costs

Interest cost has increased from Rs.6.71 crores to Rs.11.00 crores, mainly due to increased borrowings to finance capital expenditure and working capital requirements. Other expenses were generally in line with increased operations. 

Leverage & Liquidity

The  Company’s  networth  as  on  31st March, 2010, is  Rs.188.31 crores.  The long  term  debt  is Rs.144.89 crores and total debt is Rs.201.32 crores. The debt-equity ratio is 1.07:1 and the term debt to net worth ratio is 0.77:1. Most of the Company’s current investment plans are already completed. Therefore, further substantial increase in borrowing is not foreseen. The Company’s Current ratio is 1.45:1. 

Capital  Expenditure

During the year, the Company incurred capital investment of Rs.73 crores towards factory buildings, plant & machinery and equipment.

In 2005, the total shed space was 1,38,634 sq.ft. This has increased to more than 5,50,000 sq.ft. demonstrating the substantial growth in activities at the Company’s factory site.