Investor Relationship

Event

Thangamayil exults in presenting its investors the 18th historical Annual Report of the company corresponding to the financial year 2017-2018 against the previous years for the notice of investors. We hereby express our profuse thanks to our investors and employees. The company carried out the trade with a stable trend in gold price, in the post GST era reaping an EBITDA profit of Rs.6,090 lakhs for the year 2017-18 as against an EBITDA profit of Rs.4,958 lakhs in the previous year. You(Investors) can rejoice this as a part-owner of the business.

Plan for near future

Going forward, the current year 2018-19 looks promising for the following reasons. The monsoon
prediction is normal for the southern districts of Tamilnadu. Gold price tends to behave within a range thereby facilitating a normal offtake of jewellery. The company had already started to improve its Diamond sales that would marginally contribute to the bottom line.

Shift of business from unorganized sectors to organized players

Due to the implementation of strict regulatory rules by various Government Authorities including lenders the shift of business from unorganized to organized set up would significantly improve in the forthcoming years. Due to our initiatives to broad base the size of the outlets and also by increased inventory stocking we are confident that the turnover would improve eventually.

Impact of GST & regulatory changes

A small setback was caused by the introduction of GST in July 2017 sales but later on the tempo in sales was maintained for the rest of the year. The monsoon in the areas we operate though better it could not generate above average sales as the rural income could not improve as expected. The turnover was at Rs.1,379 crores as against Rs.1,299 crores in the previous year resulting in a moderate growth of 6%.

New initiatives to improve the turnover and profits

Your company has taken the following new initiatives to improve the turnover and profits in the current on-going year.
a) Relaunching of all the remaining branches one by one. The entire exercise began in the later part of 2017-18 and will be completed by end of March 2019;

b) Strive to increase the market share by exploring “Brand Equity” built over a time;

c) Continued thrust on increasing sizably our own manufacturing of major items;

d) A paradigm shift had been taken place in promotional activities;

e) “Existing staff incentive system” will result in incremental turnover.

FINANCIAL CONDITION OVERVIEW