Managing Director Speech
It gives me great pleasure to place before you, the financial statements for the year ended 31st March 2016. It is gratifying to note that the company could generate an EBITDA profit of Rs. 4599 lakhs in the year passed by as against an EBITDA profit of Rs. 441 lakhs in the earlier year. No concrete improvement was seen in the business environment. In fact, around the same level of volume we could achieve the increase in earnings. This was made possible due to extraordinary efforts made in the cost management side.
Except for a couple of months, the gold price was maintained more or less within a range thanks to steep depreciation of INR witnessed in the second half of the year. Due to introduction of central excise on gold ornaments in the budget, the industry went into nationwide strike that affected the last quarter sale of your company steeply. Even at reduced volume we could break even expenses for the fourth quarter due to better sales realisation. In fact, the closing inventory value at cost is less than the current gold price prevailing in the market. It augers well for the current year to start with.
As a measure of reassurance in the capability of the business model to perform well in the future and to sustain the earnings, I would like to place before you certain differentiation factors that enabled us to report a turnaround performance of your company in the year 2015-16. To mark a few,
- Improved stock turnover ratio both for Gold and Silver
- Effective utilization of working capital funds
- Definitive improvement in the cost management
- Strategic price reduction to compete with market forces.
- Incentive of labour pay-out