
Chairman’s Speech
Oct 29, 2021
Financial Year 2020-21: The Annual Report for the year has already been circulated. This Annual Report contains both stand-alone and consolidated financials incorporating the business operations of the UK Subsidiaries. The Directors Report vividly covers the impact of the first incidence of Covid-19 on the company during the year under report, the impact of the […]
Financial Year 2020-21:
The Annual Report for the year has already been circulated. This Annual Report contains both stand-alone and consolidated financials incorporating the business operations of the UK Subsidiaries. The Directors Report vividly covers the impact of the first incidence of Covid-19 on the company during the year under report, the impact of the second wave that commenced during the fag end of the FY 21, the current standing point, outlook, and future strategy.
Your company had to deal with the following major challenges during FY 20-21.
- Lockdown that started during the second fortnight of March 2020 and continued during a major part of Q1 of FY 21
- Gearing of supply chain – both own-manufactured and outsourced – to meet the spurt in pent-up demand till September 2020. Some sale opportunities were lost during Q2 of FY 21 due to supply chain constraints.
- Volatility in channel-mix and the need to allocate sufficient stocks to different channels – online, large format, general trade and rural.
- .Keeping the momentum of launch of new SKUs with most of the channels other than online just limping to normalcy.
- Making alternate indigenous supplies for a couple of key products that were being imported from China. You are aware that your company has taken a policy decision to stop import of finished goods from China and make the company self-reliant without depending on China. The impact of Covid, delayed the process of indigenization. This also caused loss of sizable sale opportunities during FY 21.
- Continuous hardening of key raw-material prices from the third quarter onwards and the need to take timely price-increases without disturbing the consumer sentiment.
Your company has successfully met each of the above challenges in record time that enabled your company to clock in an average monthly sale of Rs.200 crore during the last three quarters. Your company recorded a robust growth from the months of August 2020 onwards all the way up to mid-March 2021 i.e., when signs of second have started hitting the markets. Your Company’s innovative ‘Svachh’ range of pressure cookers and other new models of appliances were well accepted by the ultimate consumers.
Your company also improved its operating EBITDA margins significantly by improving efficiencies across all activities. By the end of FY 21, the supply chain has largely been streamlined with capacity enhancements both at own manufacturing locations and those at vendor level.
Against the above backdrop, it is considered commendable that your company, on standalone basis, achieved an all-time high sale of Rs. 2033 crores and an all-time of EBIDTA (before exceptional items) of Rs. 342 crores with an all-time operating EBIDTA margin of 16.8%. Standalone EPS was Rs.169.64 (PY Rs.143.21).
‘Cleaning Solutions’ business launched in FY 2017-18 has been gaining moment and witnessed a significant growth in FY 21
Prestige Xclusive Channel has been expanded and we now have more than 620 stores in place. Notwithstanding the difficult times, your Company continued to maintain its leadership in the core product categories.
Your company’s UK business through the subsidiary Horwood, has gained momentum during FY 21 both in sales and profitability.
Dividend
On a stand-alone basis, your Company is debt-free and carried a free cash of around Rs.550 Crores (including short-term liquid investments) as on 31.3.2021 after incurring capital expenditure and investments in the UK subsidiary aggregating to more than Rs 68 crores.
Finances
Prestige brand continues to be recognized as the Super Brand in the Kitchen Segment. Various recognitions for your company’s innovations and stature have been mentioned in the Annual Report. As always, your company will be investing significant amounts in brand promotion and attractive campaigns.
Ranking
Your Company is ranked within the Top 300 listed companies of India based on market capitalization.