Shreyans Industries to focus on improvisation in technology and modernization of equipment

Shreyans Industries to focus on improvisation in technology and modernization of equipment

- Reports INR 73 crores PAT for FY 22-23
- Capital expenditure planned will help the Company in improving its operations in terms of quality and operating parameters along with cost effectiveness.

Shreyans Industries Limited (SIL) is operating with a wide product mix with well accepted quality in the market based on non-conventional raw materials. SIL has reported a major jump in its net profit after tax for FY 22-23. Net profit after tax stood at INR 73.46 crores against INR 9.96 crores of last year. The paper market bounced back strongly after passing through turbulent times of Covid-19. The demand for paper remained bullish throughout the year. The Strong demand for writing and printing segment led to higher sales price line and consequently much better margins. 

Major consumers of Shreyans Industries’ products includes Major Publishers, Copy Manufacturers, Job Printers, Various states Text Book Boards, Exporters of Notebooks & Diaries, Printing & Stationary Dept., Railways, P&T Dept., Security Press etc.

SIL continued to pursue its policy of maintaining market leadership in agro based writing & printing paper category through support of its business associates and untiring efforts of committed team of professionals & workforce. The Company emphasized the need for continual improvement in quality, product development and cost optimization on sustainable basis.

SIL faced temporary challenges of steep upward fluctuations in the input/chemical costs triggered by Russia Ukraine war which got normalized over  few months. However these abnormal hikes in raw material & input costs were well set.

CORPORATE REVIEW 

During the year under review (FY 22-23), The Company achieved a production of 92996 MTs as against 92999 MTs in the previous year. Total revenue of the Company was INR 871.04 crores against INR 604.66 crores of last year. Profit before interest & financial charges and depreciation stood at INR 112.27 crores. Net profit after tax stood at INR 73.46 crores against INR 9.96 crores of last year. 

After first 2 years of Covid-19 when performance was subdued, your company has recorded much improved performance. year under review produced robust performance on account of good demand of paper, higher sales realization while input costs like raw material, fuel and chemicals remained comparatively range bound. The demand and overall market for writing and printing paper remained quite bullish almost throughout the financial year. This helped in achieving better profitability during the year under review.

PERFORMANCE REVIEW 

Keeping pace with the industry and changing requirements of the market, your company continued its journey by taking baby steps towards technical upgradation, modernization, automation and increase in machine speed for higher productivity in both the units.

SHREYANS PAPERS

Total production of paper in this unit was 51721 MTs, which was slightly lower as compared to last year figure of 53168 MTs. New Rewinder Machine with automaton features to reduce losses and improve productivity was installed. In addition to this, some small capital expenditure towards balancing facilities to improve operational efficines and essential sustenance capital projects is undertaken on year-to-year basis.

SHREE RISHABH PAPERS

Total paper production in this unit was 41275 MTs which was higher as compared to last year's production of 39831 MTs. The capital projects undertaken in the earlier years have enabled the unit for better utilization, quality improvement and cost reduction in pulp mill. Additional capital expenditure planned during the year includes Rewinder Machine with increased automaton features to reduce converting losses & higher finished production besides some other items for speeding up machine from current level for higher production. Since lead time for these is too long, the same will deliver results in the next financial year.

FUTURE PLANS/PROSPECTS

Proposed capital expenditure have been discussed while reviewing the performance of both the units. Capital expenditure planned will help the Company in improving its operations in terms of quality and operating parameters along with cost effectiveness.

The demand of paper during the year remained bullish coupled with remunerative price line. This resulted into much higher revenue and better profit margins. We sailed into FY24 with the same market tempo and enthusiasm. However, a couple of months in summer are usually considered lean period. As such, demand for paper has temporarily gone down significantly resulting into correction in price line as well as margins. This will have some bearing on results for a quarter or so in the current year. However, under the given environment, global geo-political situation and barring unforeseen circumstances, it can be cautiously predicted that the FY 24 should be fairly good for the company. We shall continue to focus on improvisation in technology and modernization of equipment to achieve sustainable and profitable growth

“The demand for writing & printing paper segment globally and India particularly is largely generated by schools, educational institutions, coaching centers and to some extent by public/private sector offices. The decision of the Government during the year to allow reopening of educational institutions on full scale sparked excellent demand from every nook and corner. “Work from home” practice also started giving way to “work from office” which helped in consolidating the demand”, the annual report of SIL stated.
 

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