Dear Shareholders,
The last few years have been historic in the history of your Company. We have navigated
the challenges and transformed to capitalize on the opportunities that have come along. As
write ; this, the world continues to face economic and geopolitical uncertainties.
The global economy is showing signs of recovery, despite inflationary pressures due to
supply chain bottlenecks, higher interest rates and rising energy costs.
In this operating environment, Company continues to create value encouraged by the
integrated business model. With a complete value chain presence, we stay ahead by
understanding industry trends. Through cutting-edge design and advanced spinning
technology, our end-to-end manufacturing delivers premium yarn and denim to leading labels
and retail chains across the globe.
Financial Performance
During the year the Company's turnover was Rs. 786 crores and EBIDTA was Rs. 54 crores.
The decline in the turnover and the EBIDTA are a result of the drop in sales realization
following a softening of the global commodity prices and the raw material rates.
The capacity utilization at both the spinning and denim divisions were at optimum
levels. Your Company was able to maintain level of exports at par with the previous year
despite challenges posed by economic and geopolitical uncertainties.
You will be happy to note that as a strategic initiative to strengthen its balance
sheet the company has reduced its term loan burden and reduced the number of banks to four
thus enhancing the operational convenience and cost effectiveness. Your Company is
focusing on cheaper export financing options. The facilities availed outside the
consortium have also resulted in lower interest burden.
Sustainability at the core
As we look back at the fiscal year, we continue to march ahead from where we left. Our
commitment to ethical manufacturing practices remains at the heart of everything we do.
Our steadfast focus on sustainability and environmental stewardship is now an important
pillar to our business model. Our denim production philosophy has now transformed beyond
traditional methods to a modern and sustainable methodology, as we strive to redefine the
industry through eco-friendly practices. Addressing the pressing need for resource
conservation, we have strategically identified key areas within our manufacturing process.
Our waste reduction practices and optimum use of natural resources are now aligned with
the increasing need to preserve and conserve resources even as the textile industry
continues to grow.
In line with our sustainability goals, our green energy resources, the solar power
plant continues to reduce our carbon footprint. Embracing innovation, we have introduced
the ground-breaking Regenagri initiative, revolutionizing cotton cultivation by restoring
soil health and natural ecosystems. Additionally, our adoption of CleanKore technology for
indigo dyeing marks a significant shift towards sustainability, eliminating
environmentally harmful chemicals and enhancing the eco-friendliness of our denim
products.
Outlook
Looking at the encouraging economic scenario in the country and the Company's
commitment to the sustainability and governance practices and the recognition it has
received in the global markets : am confident of the Company's future.
I extend my sincere gratitude to all colleagues across the Company for their commitment
throughout the fiscal year. Together, we have navigated challenges, and while more may lie
ahead, our passion to outperform with our prudent strategic priorities will guide us
towards building a stronger and more sustainable business one that we can all take pride
in.
Regards,
L.N. Agarwal
Chairman