BSE:522163 | NSE:DIAPOWERBZ | 58888:dica | IND:Cables - Power/Others | ISIN code:INE989C01012 | SECT:Cables
Past two years have been a test in no uncertain terms. Tough enough to test our mettle. Tough enough to make us stretch and keep us nimble footed. And definitely tough enough to help us emerge tougher. With the Indian economy resuming the path of resurgence, the power sector reeled under several foundational issues. The overcapacity in the power generation sector built pre-2014 proved a challenge owing to withering demand from manufacturing sector in the country. This coupled with still high T&D losses, weak financial condition of state distribution companies and uneven demand supply across regions deferred order flows and at the same time, further improved the opportunity perception for future growth. As our Company''s founder Shri SN Bhatnagar often said, silver lining is accentuated during the cloudy days. 2015-16 was one such cloudy year.
The company''s financial performance bore the brunt of high debt accumulated on account of capacity expansion as well as inorganic growth initiatives undertaken. The high interest expense not only eroded our bottom line but posed a challenge in terms of servicing the debt. We chose to first protect the interests of external stakeholders by proposing structured resolution to the lending banks. We continued to steer our businesses to growth trajectory by competing for and winning new orders. We also considered value unlocking of our subsidiary to reduce the debts. By the end of this year, we successfully crystallized the plan to bring down debts through a three pronged approach - 1. By improving promoters'' equity through further investments to propel corporate growth; 2. By converting a part of debt into equity thereby reducing the interest outflow; and 3. By -identifying a strategic partner to effectively execute the revival process. In addition, we also rejuvenated our flay product brand to ''Decays'' thereby carving a niche in terms of brand recall.
2015-16 could appear a subdued year in terms of financial performance, but was a busy year that helped strengthen our foundations. On the positive side, the company continued to win orders. The priority would be to translate these orders into revenues within the specified time to avoid any penalties and de growth. Having built the company with a
leadership culture has enabled us stay focused even in a tumultuous time. Our business verticals are managed by experienced professionals with high levels of commitment leading to an unfazed operation despite internal and external challenges.
We remain confident that the country’s power infrastructure sector is set for an ac celebrated growth especially in the transmission and distribution segment. With the present government going all out to promote the country as a global manufacturing hub, the uninterrupted availability of quality power will be the key to its success. The power ministry’s move to infuse clarity on generation resources will lead to responsible execution. Indian power sector is now evolving and opening up to newer products and sustainable offerings. Government’s thrust on smart cities, smart grids as well as ecologically sustainable sources is setting a chain of innovation in motion. Our ability to innovate and customize solutions has enabled us become a partner to various state power distribution companies and Power grid to implement using innovative practices. Be it efficiency management or controlling power theft or products designed to improve safety parameters – we are at the forefront of inspiring positive impact. Moreover, our foray into global markets is gaining traction with some improvement being achieved with export orders. We believe that the trend would continue in the coming years as well.
At the end I would like to reiterate, much of the stress in the present system will be relieved by December 2016. We will not only shape up our finances by controlling debt and introducing growth capital; but would also help us utilize our capacities with much more efficiency to improve revenues and profitability. I would like to thank every member of Team Diamond Power for being in sync with our vision for the company and working towards it. I would like to thank, all our shareholders, for your trust and your wholehearted support.
Shri Amit Bhatnagar
Date Sources:Live BSE and NSE Quotes Service: TickerPlant | Corporate Data, F&O Data & Historical price volume data: Dion Global Solutions Ltd.
BSE Quotes and Sensex are real-time and licensed from the Bombay Stock Exchange. NSE Quotes and Nifty are also real time and licenced from National Stock Exchange. All times stamps are reflecting IST (Indian Standard Time).
Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service