Vikasa to Hold AGM on July 15th to Announce Dividend Amount

Visaka Industries Limited has announced that its 42nd Annual General Meeting (AGM) will take place on Monday, July 15, 2024, at 11:30 AM IST. The meeting will be conducted via video conferencing (VC) and other audio-visual means (OAVM).

Key points on the agenda include:

1. Financial Statements: The members will consider and adopt the audited financial statements (standalone and consolidated) for the year ended March 31, 2024, along with the reports of the Board of Directors and Auditors.
2. Dividend Declaration: The company will declare a final dividend of ₹0.50 per equity share of ₹2 each for the financial year 2023-24. The Board of Directors recommended this final dividend in their meeting held on May 15, 2024. If approved at the AGM, it will be paid to all eligible members within thirty days from the conclusion of the meeting. Over the 28 years ending in FY 2023-24, the company paid an aggregated ₹216 crore in dividends. Below is a summary of recent dividend payouts:
   • FY24: ₹4.32 crore
   • FY23: ₹17.28 crore
   • FY22: ₹25.36 crore
   • FY21: ₹24.72 crore
   • FY20: ₹23.82 crore
3. Additionally, the stock price appreciation for the company over various periods has been noted as follows:
   • 1-year: 55%
   • 3-year: 4%
   • 5-year: 5%
   • 10-year: 22%
4. For comparison, the Sensex appreciation over the same periods was:
   • 1-year: 25%
   • 3-year: 14%
   • 5-year: 14%
   • 10-year: 13%
5. Director Re-appointment: The re-appointment of Shri G. Vamsi Krishna, who retires by rotation and is eligible for re-appointment, will be considered.
6. Cost Auditors' Remuneration: The remuneration of ₹1,65,000 plus applicable taxes and out-of-pocket expenses for M/s. Sagar & Associates, the practicing cost accountants, will be ratified.
7. Re-appointment of Managing Director: The re-appointment of Smt. G. Saroja Vivekanand as Managing Director for a five-year term effective from October 24, 2024, will be considered.
8. Whole-time Director & COO: The change in designation and remuneration of Shri. Joginapalli Pruthvidhar Rao, effective from April 1, 2024, will be discussed.
9. Minimum Remuneration: Approval and ratification of the minimum remuneration paid to Smt. G. Saroja Vivekanand for the financial year 2023-24 will be addressed.
10. Registered Office Shift: The company will seek consent for shifting its registered office from Yelumala Village, Sangareddy district, Telangana to Visaka Towers, Secunderabad, Hyderabad district, Telangana.

Vikasa Annual Report

Visaka Industries stands on the cusp of a significant growth phase. The company is focused on addressing current market needs while building for the future. The future growth is expected to be primarily driven by V-Next products. Plans include increasing production, establishing new plants, diversifying the product portfolio, and increasing revenue from non-asbestos sheets.

Business Segments

The company operates in four big areas that are needed in our value-added consumption products in our daily lives. even though most people use them they don't know the value addition done in those products.  

1. Fibre Cement Boards and Panels: Leveraging the expansion of India's construction sector.
2. Synthetic Yarns: Catering to the demand for quality apparel.
3. Cement Roofing Sheets: Providing economical rural roofing solutions.
4. ATUM Solar Panels: Offering green power with roofing shelter.

Key Financial Data

The company’s key financial data for shareholders to look out for in the context of whether the company has stable finances is given and how it fared well in the outgoing financial year of FY 23-24

1. Sales Revenues: Declined by 8% to ₹1516 crore in 2023-24 due to lower volumes.
2. EBITDA: Decreased to ₹99 crore from ₹147 crore in 2022-23 due to higher raw material costs and lower volumes.
3. Net Profit: Dropped to ₹2.53 crore in 2023-24 from ₹54.79 crore in the previous year.
4. EBITDA Margin: Declined by 245 basis points to 6.51% due to increased resource costs.
5. RoCE (Return on Capital Employed): Decreased by 488 basis points due to lower profits and higher capital employed.
6. Net Worth: Declined by 2.3% to ₹755.67 crore.
7. Interest Cover: Stood at 2.7x, indicating the company’s ability to service its debt.

Segmental Growth and Initiatives

As we have seen with four major segments catering to different market needs the company underlined key challenges in obtaining the raw materials and improving the product quality among others. 

1. V-Next Products: Expansion and increased production to tap into growing market segments.
2. Cement Roofing Sheets: Experienced underperformance due to higher raw material costs and lower demand.
3. Synthetic Yarns: Faced challenges due to a slowdown in key markets and increased global inflation.
4. ATUM Solar Panels: Received recognition for innovation, with significant potential in household rooftop electrification.

Technology and Efficiency Initiatives

The Vikasa had added new improvements in the year FY 23-24 and now let's see what new initiatives they have done to improve the company’s standing. 

• Automation and Quality Control: Implemented advanced systems to boost production efficiency and ensure product quality.
• Energy Efficiency: Upgraded equipment to reduce energy consumption and costs.
• Eco-Friendly Practices: Pursued zero effluents discharge policy and installed solar energy systems.

Financial Challenges

The annual report of the vikasa highlighted the company’s area of struggle which primarily deals with higher raw material costs in the two big segments.  

• Higher Raw Material Costs: Increased costs impacted profitability in cement roofing.
• Market Slowdown: Decline in demand in the textile segment and overall economic challenges.

Outlook

Despite the challenges, Visaka Industries remains integrated with India's growth story. The company’s diversified product lines provide resilience across market cycles, positioning it for recovery and future growth. The strategic focus on expanding V-Next products, improving efficiency, and enhancing sustainability is expected to drive long-term value for stakeholders.

You can find the annual report along with the AGM Notice here.

Vikasa 

Founded in 1981 by Dr. G. Vivekanand, Visaka Industries Limited is a leading manufacturer of sustainable building materials and synthetic yarns in India. The company operates 13 manufacturing plants and 13 marketing offices across the country.

Visaka's product portfolio includes cement roofing sheets under the Visaka/Shakti brands, fibre cement boards and panels under the V-Next brand, synthetic yarns marketed as Wonder Yarn, and innovative solar roofing solutions under the ATUM brand. With a robust distribution network of over 7,000 dealers, Visaka serves urban, rural, and suburban areas.

Visaka Industries is known for its commitment to quality and innovation. The company has a workforce of 1,945 employees, with 75% having over five years of tenure. Visaka's equity shares are actively traded on the National Stock Exchange and Bombay Stock Exchange, with a market capitalization of ₹920 crore as of March 31, 2024.

The company emphasizes sustainable development through its advanced manufacturing technologies and eco-friendly practices, making it a preferred choice for architects, builders, and engineers. Visaka also contributes to societal welfare through the Visaka Charitable Trust, demonstrating its dedication to social responsibility.