Dear Shareholders,
Fiscal'24 was a mixed bag as opposing forces played out. While the
global economy endured considerable volatility owing to multiple shockwaves, India
remained steadfast in its resurgence. It reported one of the highest GDP growth numbers in
the last decade, strengthening its position as the fastest-growing major economy for
another successive year. While some businesses were swarmed with opportunities consequent
to India's economic progress, the textile sector remained subdued because its
fortunes were closely dovetailed to advanced economies.
Elevated inflation and high interest rates adversely impacted consumer
confidence, leading to a shift in priorities and spending patterns. The cautious mindset
resulted in declining demand for fashion and textile products. Subdued demand and
consequent destocking by retailers throttled growth opportunities across the textile value
chain.
China's dumping of cheap man-made fabrics into Indian markets
aggravated the woes of the domestic textile sector.
Despite the prevailing mayhem, we reported a reasonable growth in our
numbers. Our revenue from operations increased by 14.78% from C12.52 Crore in FY23 to C
14.37 Crore in FY24, while the Net Profit decreased by 8.33% from C 1.44 Crore to C 1.32
crore over the same period.
This contrarian performance was primarily owing to our team's
efforts in identifying profitable business opportunities and capitalising on them,
strengthening our relations with existing customers, and growing our share of business
with them.
Looking ahead
The global economy is showing signs of a positive turnaround. Since
January 2024, the global economic outlook has improved considerably. The world economy is
now projected to grow by 2.7% in 2024 (against 2.4% forecasted earlier) on the back of the
better-than-expected performance of the United States and some improvement in the outlook
for several large emerging economies. This heralds improved fortunes for the textile world
and domestic players.
The domestic textile sector also appears promising owing to the
improved earning propensity of the average Indian, a _ourishing retail sector and booming
e-commerce. Also, with the incumbent Government returning in the recently concluded
General Elections, the progressive policies and schemes should continue with more
aggression. With the government aggressively pursuing FTAs with large global economies,
opportunities for domestic textile players are expected to be ampli_ed.
Volume-Value play
While the opportunities in yarn should improve over the medium term to
long-term, we are mindful that our yarn trading business is a low-margin business with
limited growth potential.
Hence, we are working on several areas for entering the technology
space that will enable us to participate in India's industrialisation journey, which
promises to unpack significant opportunities.
Our strong financial health isn't just a number on a page;
it's the fuel that propels our innovation engine. This robust position allows us to
actively explore exciting new opportunities.
As we move into the next chapter of our journey, we are proud of the
strong groundwork we have laid and are ready to propel our growth forward. We remain
committed to investing in our team, refining our processes, and advancing our technology.
Acknowledgement
On behalf of the Board, I would like to extend my heartfelt thanks to
our dedicated employees, valued clients, and supportive shareholders for their unwavering
trust and backing. With your ongoing support, we are confident that we will achieve
greater milestones in the future.
Warm Regards,
Shekhar Agarwal
Chairman, Managing Director & CEO