Our consolidated revenue from operations reached Rs. 728crore during the year, marking
12 % compared to the previous year.
Dear Stakeholders,
India is a major producer and supplier of natural stone globally and is home to a large
number of granite suppliers who are skilled in producing and exporting practically every
kind of stone. Each year, India exports the bulk of granite and other natural stones to
several countries, including Germany, Poland, Slovenia, Slovakia and Austria, along with
other parts of the world.
At Pokarna, one of the leading exporters of granite and the largest exporter of quartz
surfaces, we have been utilising our manufacturing expertise to deliver world-class
granite and quartz surfaces to our growing customer fraternity across the globe.
I am honoured to present the 32nd annual report of Pokarna Limited at the conclusion of
FY 2022-23. In today's highly competitive and dynamic business landscape, synergies have
become a crucial driver of success. At Pokarna, we acknowledge the immense value that can
be created by harnessing the collective strengths and capabilities of our diverse teams,
business divisions and strategic partnerships. By synergising our efforts, we are geared
to unlock new opportunities, drive innovation and achieve sustainable growth.
Industry and business overview
2023 was an eventful year for us as we delivered on our strategy and made great strides
in driving modest growth amid a slew of challenges. While substantial work lies ahead, we
are pleased with how we have responded so far. As we enter a new fiscal year, it gives me
immense pleasure to reflect on the year just gone by.
The housing and construction markets in the United States faced several headwinds in
the later part of the year, primarily due to soaring interest rates coupled with
broadening inflationary pressures. Additionally, shipping prices witnessed a sharp fall,
causing our customers to adjust their inventory levels and put certain orders on hold. All
these factors contributed to muted demand.
Consequently, we decided to reduce production volumes, which resulted in greater
unabsorbed overhead expenses and lower margins, thereby impacting our overall
profitability. The combination of high interest rates and lower consumer confidence
hindered market demand and volumes further. Regardless of the uncertain duration of these
challenges, we are dedicated to managing production volumes effectively until the
situation stabilises.
We, at Pokarna, remain confident and well-prepared to navigate these downturns,
strengthened by our rich legacy spanning over three decades, cutting-edge manufacturing
facilities and substantial presence in more than 20 countries. We have identified new
geographies, such as Canada, Russia and parts of Europe, as potential areas for expansion.
By tapping into these markets, we aspire to diversify our customer base and lessen our
reliance on the US market. This will also bolster our resilience and sustain long-term
growth.
I am pleased to report that, amid several headwinds, Pokarna has been able to deliver
modest financial results. Our consolidated revenue from operations reached Rs. 728crore
during the year, marking 12 % compared to the previous year. This performance is an
outcome of our commitment to innovation, the sharpening of our capabilities and the
dedication of our talented workforce.
Segmental performance
In terms of our granite segment's performance, we witnessed intense competition and
escalated interest rates, which adversely affected our revenues and profitability.
However, our vertical integration with captive quarries and state-of-the-art mining and
processing infrastructure provided us with a competitive advantage in handling external
adversities.
Similarly, in the quartz surfaces segment, the rising interest rates and sharp fall in
shipping rates weighed on demand and customer sentiment, leading to inventory reductions
and order delays. Nevertheless, our state-of-the-art production facilities, coupled with
an unwavering focus on research and development, enabled us to deliver premium-quality
products to our clients. Throughout the course of FY23, we served our customers through
private label products and our Quantra brand, ensuring that their diverse needs were met.
Our laser-focused approach to operational excellence also helped ensure that processes
are efficient, costs are optimised and quality is impressive. Furthermore, we deliberately
focused on key segments in the US market, carving a well-defined path to healthy margins
and sustained revenue growth. In our apparel division, we have begun implementing several
initiatives for cost reduction.
Determined to turn threats into opportunities, we remain committed to exploring new
avenues of growth while also leveraging our robust footprint across various geographies.
Guided by a visionary leadership team, we, at Pokarna, are poised to steer our
organisation towards success while creating sustainable value for all our stakeholders.
Enhancing brand visibility
We actively engaged in international exhibitions and trade shows to amplify our brand
visibility and strengthen our customer connections. These efforts have not only assisted
us in showcasing our state-of-the-art products, but have also positioned us ahead of
evolving market trends.
Future outlook
In the years ahead, we plan on enhancing the capacity utilisation of our new quartz
unit, while ensuring maximum efficiency and productivity. As we are cognisant of the fact
that rising interest rates, higher inflation and declining consumer confidence may
continue to impact demand momentum in the near term, we plan on overcoming these
challenges through consistent innovation and strategic decision-making.
Gratitude
I would like to take this opportunity to thank all my colleagues, whose dedication and
perseverance have been essential to our accomplishments. Additionally,
I want to convey how thankful I am for our esteemed board members and Bankers for their
valuable guidance and assistance. Last but not least, allow me to express my gratitude to
you, dear valued shareholders, for your consistent trust and cooperation throughout our
journey.
With best regards,
Gautam Chand Jain
Chairman & Managing Director.