KEY HIGHLIGHTS (CONSOLIDATED)

* KBL + subsidiaries

Financial Capital is utilised both for long-term facilities such as acquisition of assets like machines, technology, buildings and for working capital such as purchase of materials, extending credit to customers and meeting the fixed and variable expenses. This ensures that the organisation is well equipped to develop new products and technologies, grow its businesses, and sustain its market position.

Our Finance team has well-defined goals about maintaining optimum borrowing levels, negotiating rates for such borrowings and providing adequate funds for the business to pay suppliers before due dates and purchasing fixed assets required for its business. This is ensured through proper planning of requirements, close following of inventories and receivables, exploring various sources of finance to obtain competitive rates and optimisation of proper mix of distinct types of debts and equity.

CREDIT RATING

We follow prudent financial policies and strategies, and continuously pursue our plans and objectives to expand our market share, margins and cash position. This has helped us improve our outlook from negative to stable in the recently conducted credit rating. The Company is presently rated by CRISIL as “AA-” with stable outlook for long term and “A1+” for short term periods. The rating depends on various risks associated with the Company such as the Management Risk, Business Risk & Financial Risk and factors considered to evaluate these risks are Industry Risk, Market Position and Operational Efficiency of the Company.

PURSUING GROWTH OPPORTUNITIES

We have actively sought out and capitalised on various growth opportunities that align with our long-term vision and goals. These opportunities have allowed us to improve and retain our market presence in high-growth segments, diversify our product/service offerings, and enhance our competitive advantage. We also identified new market segments with significant growth potential and have successfully maintained our market share through improved customer reach and product offerings. Our revenues improved by 17% and EBITDA margins by 44% during the year under review on standalone basis.

RESEARCH & DEVELOPMENT

We understand the importance of investing in research & development (R&D) to drive product innovation, stay competitive and foster long-term growth. KBL is systematically investing in digital initiatives to transform their operations, enhance efficiency and drive innovation.

During the year under review, the Company invested ₹ 251 Million for R&D programs across products and solutions. We also regularly undertake investments in capital expenditure plans and in fixed assets, infrastructure, technology, and other strategic initiatives. This helps us to understand our commitment towards long-term growth and the allocation of financial resources to support business expansion.

1. Funds raised: We maintained a balanced capital structure, comprising equity and debt, to optimise our financial position and support strategic objectives. Our funds allocation strategy aims at maximising shareholder value, while managing financial risks effectively.
2. Dividend paid: We understand the significance of dividends in rewarding our shareholders for their investment and providing a tangible return on their ownership. Our dividend payment approach is guided by a balanced and prudent strategy that takes into account various factors, including our financial performance, cash flow position, growth prospects and capital allocation priorities.
3. Cash balance: We understand that maintaining a strong liquidity position is crucial to meet our operational and financial obligations. We analyse our cash flow, including operating, investing, and borrowing activities, to evaluate our ability to generate and utilise cash effectively.
4. Cost optimisation and margin improvement: We implemented several steps to improve our margins and enhance profitability. During the year, we improved our product mix, enhanced sale of value-added products and undertook cost reduction initiatives at our manufacturing plants and offices. We also achieved operational efficiency through better asset utilisation and maintenance and quality management techniques. Various initiatives were taken at our manufacturing plants aimed at continuous improvement methodologies, such as TPQM, Six Sigma and Kaizen.
5. Improving supply chain: We enhanced supplier relationships and improved demand forecasting for channel network stock business. We also undertook definitive steps towards vendor rationalisation, besides also conducting trainings of suppliers and engaging in monitoring of quality.
6. Pricing optimisation: Pricing optimisation was undertaken after considering factors such as market demand, competition, cost structures and value propositions.

DECADE AT A GLANCE (STANDALONE)

(All figures in ₹ Million, except stated otherwise for the last ten financial years)

Previous years’ figures have been regrouped to make them comparable. For FY 2019-20 and FY 2020-21, performance was partially affected by COVID-19. * Final Dividend Recommended 225%

KBL DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED

(figures in ₹ Million)