sejal architectural glass limited - Securities and Exchange Board of ...

Fiscal 2005 Vs 2006
Income
Income for the Fiscal 2006 increased to Rs. 3072.16 Lacs from Rs. 2448.38 Lacs showing a growth of
25.48%. This increase was due to improved working capacities and optimum utilization of the
resources available and increased marketing effort by our Company.
Expenditure
Expenditure for the Fiscal 2006 increased to Rs. 2608.57 Lacs from Rs. 1983.28 Lacs for fiscal 2005
showing a increase of 31.53%. The increase in expenditure was on account of increase in raw material
cost and increased marketing cost. The marketing cost has increased since company had arranged
seminars and conferences in the major cities to bring awareness for use of architectural glass.
Material Purchased and Consumed
Material Purchased and Consumed increased from Rs. 1531.37 Lacs for Fiscal 2005 to Rs. 2037.56 Lacs
for fiscal 2006 showing an increase of 33.05%. This increase was on account of stiff increase in raw
material cost during the year. Material Purchased and Consumed as percentage of turnover increased
from 63.03% for fiscal 2005 to 69.06% for fiscal 2006.
Manufacturing and Selling Expenses
Manufacturing and Selling Expenses increased from Rs. 364.98 Lacs for Fiscal 2005 to Rs. 449.02 Lacs
for fiscal 2006 showing an increase of 23.03%. The marketing cost has increased since company had
arranged seminars and conferences in the major cities to bring awareness for use of architectural
glass. Manufacturing and Selling Expenses as percentage of turnover marginally increased from
15.02% for fiscal 2005 to 15.22% for fiscal 2006.
Administrative and Other Expenses
Administrative Expenses increased from Rs. 86.93 Lacs for Fiscal 2005 to Rs. 121.99 Lacs for Fiscal
2006 showing an increase of 40.33%. Administrative Expenses as percentage of turnover increased
from 3.58% for fiscal 2005 to 4.13% for fiscal 2006.
EBIDTA
EBIDTA decreased from Rs. 465.10 Lacs for fiscal 2005 to Rs. 463.59 Lacs showing a decline of 0.33%.
EBIDTA Margin (EBIDTA as percentage to turnover) has declined from 19.14% for fiscal 2005 to 15.71%
for fiscal 2006. This decline was due to increase in raw material cost and increased marketing cost.
Depreciation
Depreciation increased from Rs. 59.57 Lacs from 2005 to Rs. 64.75 Lacs for fiscal 2006 mainly on
account of depreciation on new Plant and Machinery. The gross block increased in fiscal 2006, it was
Rs. 1330.84 Lacs in fiscal 2005 and in fiscal 2006 it increased to Rs. 2650.32 Lacs.
Interest cost / Financial Charges
Interest cost / Financial Charges decreased from Rs. 102.67 Lacs for fiscal 2005 to Rs. 92.75 Lacs for
fiscal 2006. The average interest rate for fiscal 2006 was 6.14% compared to 10.89% for fiscal 2005.
Taxes
Taxes increased from Rs. 40.40 Lacs in fiscal 2005 to Rs. 83.22 Lacs in fiscal 2006. The increase in tax
expenses was on account increase in effective tax rates. The effective tax rates increased from
13.34% for fiscal 2005 to 27.19% for fiscal 2006, the amount of taxes have increased due to increase
in revenue and PBT.
Profit after Tax (PAT)
PAT decreased from Rs. 250.03 Lacs in fiscal 2005 to Rs. 216.20 Lacs in fiscal 2006 showing a decline
of 13.53%. PAT margin (PAT as percentage to turnover) decreased from 10.29% for fiscal 2005 to
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