The
management’s
perspective
“The best way
forward lies in never
looking back.”
Each of our business reviews over the
last few years has begun with why the
Company performed better.
Permit us to be different this time.
We would rather begin with an analysis
of why the Company should not -
hypothetically - have reported another
improved year.
One, public spending declined as the
country’s economy reported a sub-5%
growth. Most consumers selected to
postpone purchases and renovation
(bathroom solutions included).
Two, the country’s real estate sector
remained sluggish; in Mumbai and Delhi
there was an unsold inventory equivalent
to a few years of sustained offtake.
Three, interest rates stayed high, eating
into cost and profit structures.
Four, high fuel prices threatened margins.
By these realities, it would have been
reasonable to assume that the Company
would have reversed its excellent run of
the last few years with an interruption.
Dear shareholders,
10
Kajaria Ceramics Limited
