Century Extrusions Ltd

From humble beginnings to becoming one of industry leader, we have consistently embraced innovation, craftsmanship, and a relentless pursuit of quality.

With unwavering dedication and a commitment to customer satisfaction, we have earned the trust and loyalty of our customers. We will continue to inspire progress and leave a lasting legacy for generations to come.

An analysis of our company's future must align with the larger narrative of India's economic progress.

The Big Picture

The narrative of India stands out as one of the most compelling globally. With the world's largest population and a significant number of underconsumed individuals spanning various sectors, it also boasts the largest number of people transitioning into the economically productive middle-income bracket.

The rise of a more aspirational consumer class can be attributed to higher disposable incomes, increased exposure to global lifestyle trends, and a desire for a better quality of life. This shift is evident in national economic indicators, as India is projected to see a GDP growth of 7.8% for the fiscal year 2023-24, surpassing the global economic growth rate of 3.1%. India is expected to maintain a growth rate of over 6% in the foreseeable future, indicating steady economic progress. While the annual growth rate may remain consistent, the overall increase in GDP on a larger scale will continue to rise steadily.

The Indian Aluminium Extrusion market is experiencing significant growth due to the expanding construction

industry in India, which is driving demand for lightweight and energy-efficient materials.

Furthermore, the automotive sector's growing need for lightweight and corrosion-resistant components is also fuelling the market's growth. In addition, government initiatives aimed at infrastructure development and sustainable practices are further fuelling growth, in line with global environmental concerns. Advancements in extrusion technology, allowing for more complex and customized shapes, have created new applications and opportunities within the Indian market.

This represents my optimism that even as the Company's performance remained relatively flat during the year under review, the foreseeable future appears promising.

Performance overview

We are pleased to present an overview of our performance for the financial year 2023-24. Our production capacity utilization stood at 13,674 MT against an installed capacity of 15,000 MT, reflecting our operational efficiency and market demand. Our turnover increased slightly to Rs.37,565 Lakhs in FY 23-24 from Rs.37,236 Lakhs in the previous fiscal year, indicating stable revenue growth.

The cost of raw materials consumed rose marginally to Rs.29,410 Lakhs in FY 23-24 from Rs.28,969 Lakhs in the previous fiscal year, reflecting our continued efforts to manage input costs effectively. During the current year, our EBIDTA showed an improvement, reaching Rs.2,328 Lakhs compared to Rs.2,207 Lakhs in FY 22-23, demonstrating our ability to enhance profitability despite a challenging economic environment.

Our Profit after Tax (PAT) saw a significant increase to Rs.745 Lakhs in FY 23-24 from Rs.597 Lakhs in FY 22-23, showcasing our robust financial performance and efficient cost management. We have also managed to reduce our long-term borrowings substantially to Rs.430 Lakhs in FY 23-24 from Rs.711 Lakhs ion the previous fiscal year, strengthening our balance sheet and reducing our financial leverage.

Our market capitalization experienced remarkable growth, surging to Rs.15,160 Lakhs in the current fiscal year from Rs.6,600 Lakhs in FY 22-23, reflecting increased investor confidence and market recognition of our company's value. Additionally, our networth has improved to Rs.7,305 Lakhs during FY 23-24 from Rs.6,515 Lakhs in FY 22-23, underscoring our solid financial foundation.

These achievements are a testament to our strategic initiatives, operational excellence, and the unwavering commitment of our team. We remain dedicated to driving sustainable growth, enhancing shareholder value, and maintaining our leadership position in the industry.

Focused Growth

Our balanced approach towards growth is a consequence of several strategic factors including a diversified revenue base, appropriate Capital investments, strong cost controls, continuous investment in R&D activities and our proximity to customers. Our philosophy of delivering tomorrow's solutions today has been manifested in the launch of the right mix of innovative products that help our customers grow their businesses more effectively. The company's strategy of designing and manufacturing products for markets also paid rich dividends as we were able to expand our presence on a Pan India basis and some regions internationally and today has become one of the reliable aluminium extrusions products suppliers to various clients of repute.

Aim to stretch

In our relentless pursuit to stretch and expand our horizons, I am delighted to announce that we have signed a Memorandum of Understanding (MOU) with the Government of Odisha on January 19, 2024. This strategic initiative marks a significant milestone for our company as we propose to set up a new aluminium

extruded products manufacturing unit in the district of Jharsuguda, Odisha. With a production capacity of 30,000 MT, this new facility represents a substantial investment of Rs.16,000 Lakhs. This expansion will not only boost our production capacities but also create approximately 1,000 employment opportunities, contributing to the economic development of the region. This move underscores our commitment to growth, innovation, and community development, as we continue to build a stronger and more dynamic future for Century Extrusions Ltd.

Sustainability

In today's business landscape, companies are facing heightened scrutiny not only on their corporate governance but also on their environmental and social performance. Our firm is dedicated to upholding ethical standards in all that we do, believing that this approach paves the way for sustainable growth, competitiveness, profitability, and responsible business practices.

At Century Extrusions, we manufacture and innovate products using progressively less resources per tonnes of end product. We will continue to prioritize resource optimization in our manufacturing process to moderate our carbon footprint.

We are a team of go-getters. With the Company growing at a decent pace, the management is focusing more on developing the skills of professionals and managers within the Company to lead the future growth. This has benefited us till now, with a team of home-grown professionals, with specific domain knowledge are taking up higher responsibilities. We also ensures that the employees are motivated to carry out their responsibility with utmost responsibility through moral support and financial rewards. During the year we were awarded as the "Most Preferred Workplace in Manufacturing during 2023-2024".

Going ahead

We will continue to invest in controlled growth funded by the prudent allocation of our accruals and moderate debt mobilisation without affecting our overall gearing, risk profile or Balance Sheet structure. We will continue to prioritise liquidity through various market cycles resulting in enhanced resilience and better financial performance.

I wish to express my heartfelt gratitude towards all our stakeholders: our shareholders, employees, customers, bankers, and regulatory authorities all for their unwavering faith and support. We sincerely commit to building a business with strong foundations and promising future.