Key Highlights

FY'16 was more of a consolidation year for the company, where, exports did well, but domestic business was slightly negative. Due to the policy of banning large plastic drums by many States in India, company lost some extrusion machine business, which was covered by sale of some other products and higher exports.

Management started FY'17 on a strong note and expected strong H2 FY'17. Post demonetisation, around 25% of company's business got affected. Though liquidity has started to ease, the denomination of currency is still a problem. Further, some businesses still happens in cash and that's where things need to change.

Company has been able to increase its exports consistently every year. It was at 20% of total sales 3 years back and as on Sep'16, it is around 40% of total sales. The company was able to penetrate newer markets like Bangladesh, Vietnam, Taiwan etc.

Going forward exports will stabilise around current level of 35-40% of sales.

Management is hopeful that things will recover from Jan'17 onwards at domestic level, but how much recovery will happen is anybody's guess.

There will be some forex gains due to Rupee depreciation in Dec'16 quarter.

Overall plastic industry will be down by around 25% in general. Depending upon the product range and categories every company will be affected. The revival will depend upon industry's confidence of how to move ahead, as everyone is still waiting and watching the implications.

The Joint venture with Italian company has already started execution of export orders in FY'16 and the company got some repeat orders as well. The JV will shape up strongly going forward.

No capex planned in near term as sufficient capacity exist.

The company will gradually increase its dividend distribution.