FY14 continued like the earlier year with a further downturn in the economic scenario, investments in

capital goods. Growth prospects of customers continued to be low and tight liquidity position in the
market adversely affected order bookings for most of products. Normally, customers have larger
procurement in the last quarter but in this year trend was missing due to customers preferring to hold
and defer their purchases leading to lower invoicing volume and lower overall profitability.
Some key segments like Power and Automobiles, continued to show declining performance. High
inflation created huge pressure on margins. Competition made it difficult to recover higher costs. With
sustained sales efforts, managed to restrict fall in revenues to five-percent, despite larger fall in order
booking.
In Engineered Products Division, operate in various private and Government segments. Automobile and
Power segments showed decline in capital investments which adversely affected key product lines like
Electrical and Simulation. Partly compensated by higher investments by other customers in R&D and
Education segments. However, delayed investment decisions by customers affected order booking
especially in Public Sector Undertakings.
Stable Government at the center should boost capital goods investments, benefitting the company.
Industrial Finishing business though was on decline, were able to manage better by focusing on value-
creation by offering more safety in operations, better returns and better quality for products
Material Handling Division adversely affected as growth plans of customers got delayed and
replacement plans were postponed. Expect to see this business pick up strongly. However, competition
from unorganized sector and imports expected to put pressure on margins.
With increased range of products, can now to respond to the expected increase in level of activities,
especially in warehousing and logistics industries