Brief Points from AGM 2020:
There were no salary cuts in the company. Even during shutdown and slowdown period we paid full salary all across the company.
We have not finalized any future capex as the current capex is delayed due to coivd.
The capex plan on land adjacent to the current plant is delayed by 3 months. 1st slab was laid a day before AGM 2020.
Intend to use GOI scheme on manufacturing and waiting for GOI approval expect to get same in October.
We expect to reach pre-covid levels of operations from October. Gradually many customers are already back to the pre-covid levels.
Expect a good H2FY21.
We have 90% market share in domestic shunts industry.
Globally, 70% of our exports are direct to end customers and only 30% through channel partners. On the domestic entire 100% sales is to direct customers.
Mr Ghumman spends 95% of his time on new product developments
In the last 3 years 30% of revenue came from new products.
In bimetal segment we are ran at 80% utilization and with the new capex the capacity will be more than 3x in new plant.
In Shunt we are the largest in world in electro welding under single location.
Innovative JV was focusing on export market. But, US customs issue affected this entity’s performance.
Our key client for shunts is getting back to normal and off-take from them is expected to be good.
We expect a new set of products to be dispatched from next year.
There is good traction in auto sector i.e… electric vehicles the segment we cater to.
May have missed some other points as the quality of connection was poor and interaction was interrupted. Personally - the big positive for me was the validation and positive undertone of the management around the large customer and scale up on new relationships which they have been seeding for last few years going forward. Given the low market cap and potential, it remains interesting to my mind.
Concern remains the way management wants to remain low profile and not open up or adopt modern practices of interaction with investors/shareholders. Few other issues like high salary remain.
Disc: Invested in family accounts and clients in PMS.