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Industries Shrugging Off Demonetisation Pangs: CARE

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The performance of 3,292 companies in Q1 FY19 over the last year (Q1 FY18) reveals an improvement, with net sales registering a double-digit growth during the quarter over Q1 FY18 performance. Also, after declining by 10.8 per cent y-o-y in Q1 FY18, net profits witnessed a double-digit growth of about 12.9 per cent year-on-year (y-o-y) in Q1 FY19. Net profit margin witnessed marginal contraction of about 30 basis points y-o-y during the quarter, says CARE Ratings in a recent report.

In Q1 FY19, after excluding the banks and finance companies which are guided by exogenous factors, the performance of industry (2,749 companies) depicts almost similar trend as that of the aggregate sample in terms of sales. However, in terms of profits, the aggregate performance of companies witnessed a sharp improvement and increased by 38 per cent y-o-y vis-a-vis a decline of 13.6 per cent registered in Q1 FY18, says the report, Corporate Performance for Q1-FY19, anchored by Madan Sabnavis, Chief Economist, CARE Ratings.

For the aggregate sample, net profit margin remained positive. While excluding banks and finance companies, the net profit margins improved by about 130 basis points in Q1 FY19. It has also been observed that some industries in the Indian economy have been picking momentum leaving behind the demonetisation and GST implementation impact that did impact industry performance between Q3 FY17 and Q2 FY18.

Small firms facing net loss
While the overall aggregate picture of the industry has improved post-GST (Goods and Services Tax) implementation, the smaller companies, i.e., companies below Rs 100 crore sales continue to be on the back foot. This size range with maximum number of companies has continued to register net loss in Q1 FY19. Also, of the total 1,857 companies with net sales below Rs 100 crore, 813 companies (about 45 per cent companies) have posted a y-o-y decline in net sales during Q1 FY19.

Of the 50 industries considered, majority of industries have witnessed positive growth in sales during Q1 FY19 except for nine industries. Out of these, with positive sales growth, 20 industries registered y-o-y higher growth vis-a-vis Q1 FY18. Some of the leading industries were auto – tractors, auto – trucks/LCVs, auto ancillary, metals – steel and iron products, aluminium and ferrous, private banks, housing finance, finance – NBFCs, refinery and oil exploration, fertilizers, industrial gases and fuels, etc.

In all, nine industries witnessed negative y-o-y growth in net sales of Q1 FY19 with significant declines. However, some industries such as glass, paints, textiles, plastics, ceramics, etc. are highly unorganised and therefore the performance will not necessarily be reflected in the analysis mentioned below. In order to gauge the performance of various industries, we have considered the index of industrial production (IIP) growth in Q1 FY19 for the comparable industries, CARE Ratings said. The following are the CARE Ratings’ comments on cement and related industries in the report:

Cement
Industry net sales witnessed a subdued growth during the Q1 FY19. However, as per the IIP, cement production increased by over 14 per cent during Q1 FY19. This growth in IIP could majorly be on account of inventory restocking by players. Rural markets have shown some traction in cement demand.
Central and Western market realisations have improved, eastern markets remained steady. Northern and Southern market continues to be volatile.
Going forward, increase in demand from retail housing (PMAY) and infrastructure is expected to improve realisation for the industry.

Steel & iron
The industry’s performance registered growth which was however lower than Q1 FY18 on sales front on a y-o-y basis backed. The growth in revenues was backed by strong underlying demand and rising international prices, domestic steel prices too went up during the quarter.
Manufacture of basic metals under IIP witnessed a growth of about 3.8 per cent during Q1 FY19.
The prices of HR coils, CR coils and TMT bars grew by 27-40 per cent on a y-o-y basis
Affordable housing is expected to provide big boost to the TMT steel sector. Also, there is a lot of consolidation taking place in the industry, which will benefit the players going forward.

Construction
Industry has witnessed only a marginal growth of 1.7 per cent in Q1 FY19 over a growth of 7.9 per cent in Q1 FY18 due to subdued construction activities in organised real estate during the quarter

Paints
Sales increased only marginally during the quarter on back of slower recovery in demand vis-a-vis last year season.
The quarter witnessed upward movement in crude along with lot of volatility in forex and depreciation in the rupee resulting in high inflation.
However, profits have registered a double-digit growth of about 24 per cent in Q1 FY19 vis-a-vis a decline of about 16 per cent in Q1 FY18.

Ceramics/marble/granite/sanitary ware
The industry witnessed slower off-take from user industry along with issues related to GST implementation (tax rate on tiles under GST increased to 28 per cent vis-a-vis 12-14.5 per cent rates earlier, this rate was revised to 18 per cent later)

The industry continues to anticipate a rise in demand for tiles, backed by the rising rural incomes. Lifestyle decisions in the rural segment is likely to have a positive affect the demand for floor tiles and sanitary ware. The only concern is the declining margins, which comes as a result of frequent revisions in GST rates on Ceramic products.

Some interesting takeaways
Growth in sales for the sample companies excluding banks and finance though marginally lower than that in FY18 comes as a surprise considering that Q1-FY18 was a period when GDP growth slowed down sharply. On a low growth base one would have expected growth to have been higher.
There was a sharp increase in growth in net profit. However, this came over a negative growth rate in FY18. When compared with Q1-FY17, growth is less sharp.
The same picture emerges for net profit margin, where the increase in Q1-FY19 over FY18 from 5.8 per cent to 7.1 per cent is still lower than 7.7 per cent in FY17.
The interest cover improved during this quarter which can be broadly attributed to higher profits growth.
Size wise analysis reveals that the larger companies with sales of over Rs 500 crore dominated the overall performance. However, the smaller ones with sales of less than Rs 100 crore each did not do well in terms of sales and profit.
Industry wise performance was quite diverse with no fixed pattern being discernible.

Y-o-Y decline in net sales in Q1 FY19
Sugar
Consumer durables – electronics
Electronics – components
Telecom equipment
Cement
Ceramics/marble/granite/sanitary -ware
Telecommunications – service providers
Mining and minerals
Diamond and jewellery

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Economy & Market

Leonard Unveils Dual-Head Robotic Arm for Hazardous Industrial Demolition

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 Leonard unveils Descender Duo, a dual-head robotic demolition arm designed to improve industrial safety and reduce shutdown time by up to 50 per cent.

Industrial robotics and refractory services specialist Leonard has launched Descender Duo, a dual-head robotic demolition arm designed to improve safety, accelerate maintenance and reduce shutdown times in hazardous industrial environments. The system made its debut at Lisahally Power Station in Northern Ireland, removing 25 tonnes of slag material within hours.

Developed for the cement, metals, waste-to-energy and petrochemical industries, Descender Duo enables remote-controlled refractory demolition, anchor cutting and welding, and refractory spraying inside boilers, calciners and silos. Its vertical-access design eliminates the need for personnel to enter confined, high-risk spaces during these operations.

Weighing less than two tonnes, the pre-assembled system requires an access opening of just 1.2 m². Supported by an external overhead hoist, it uses electrically operated hydraulic stabilising legs to secure itself inside vessels. The robotic arm offers 360-degree rotation and is suited to vessels approximately 9 m in diameter, with its operating reach extendable through strategically positioned access points.

Equipped with two independently controlled robotic heads, Descender Duo can perform identical or different tasks simultaneously, including refractory demolition, anchor cutting and spraying. Its remote-control system incorporates live camera feeds, allowing operators to monitor operations without entering hazardous environments.

According to Leonard, the technology can deliver time savings of up to 50 per cent compared with manual methods. Its ability to operate at temperatures exceeding 100°C allows maintenance to begin as early as 24 hours after burner shutdown. An all-electric power supply further supports cleaner and more cost-efficient operations.

First Deployment Demonstrates Shutdown Efficiency

The system was first deployed at Burmeister & Wain Scandinavian Contractor’s (BWSC) Lisahally Power Station in Londonderry, Northern Ireland. The facility generates electricity from grade C waste wood, supplying approximately 40,000 homes and businesses.

Leonard and BWSC collaborated to develop a customised solution for the plant’s 26-metre furnace, where extensive external pipework created significant access challenges.

Mark Leonard, Managing Director, Leonard, said, “It required new thinking and rather than step away from the problem we were committed to solving it for the customer, with the customer. We’re relentless in our approach to tackling complex challenges, head-on. We took our years of cement plant experience, coupled with our working knowledge of the BWSC plant, and designed, engineered and tested a completely new vertical solution within just seven weeks from that initial conversation with the customer. That solution was the Descender Duo as we know it today.”

Traditionally, the furnace required a cooling period of up to 36 hours before preparatory work could begin, followed by manual slag removal using rope-access personnel. With Descender Duo, work commenced just 24 hours after shutdown, reducing downtime by up to one day.

The deployment removed 25 tonnes of slag within hours, eliminated the need for at least six workers to enter the hazardous furnace interior and saved 26 hours in the shutdown programme.

“The effectiveness exceeded expectation,” said Martin Doran, Plant Manager at Lisahally Power Station.

“When the Descender Duo concept was first discussed, we had to spend some time with the team from Leonard looking at how it was going to be moved into the furnace. Every site is different and that presented its own challenges, but nothing that the team couldn’t overcome. Once it was installed we were hugely impressed by its efficiency.”

Expanding Industrial Robotics Applications

Descender Duo joins Leonard’s existing portfolio of robotic maintenance solutions, including the Axis horizontal-access arm, Nano confined-space access arm, Charger cement mill media recharging system and Calibre cement mill media grading system.

Headquartered in Northern Ireland, Leonard provides robotic refractory demolition, installation, inspection and industrial maintenance services across the cement, metals, energy, biomass, glass and civil engineering sectors.

Formerly known as G Leonard, the company has more than 35 years of industry experience and operates across Europe, North America, the Middle East, Africa and Asia-Pacific.

The latest innovation reinforces Leonard’s focus on replacing hazardous manual processes with robotic systems that improve workforce safety, enhance operational efficiency and minimise industrial downtime.

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Concrete

Martin Engineering Appoints Ashwini Khunte as India General Manager

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Martin Engineering names Ashwini Khunte India General Manager to strengthen operations and drive growth across key bulk material handling sectors.

Pune

Martin Engineering, a global provider of bulk material handling solutions, has appointed Ashwini Khunte as General Manager of its India business, strengthening its leadership as the company expands its presence across the country’s cement, mining, steel, power and infrastructure sectors.

Khunte brings more than a decade of experience with Martin Engineering, having joined its Indian operations in 2013 as a Design Engineer, shortly after the company established its presence in the country in 2012.

A mechanical engineer by qualification, she spent her initial five years developing bulk material handling solutions in collaboration with the company’s operations team. During this period, she gained extensive experience addressing operational challenges in the steel, cement and coal industries. She subsequently moved into project engineering, managing major engineering, procurement and construction (EPC) and original equipment manufacturer (OEM) projects from initial enquiry to commissioning. Her responsibilities later expanded to overseeing Martin Engineering’s conveyor product portfolio in India, involving customer engagement, technical presentations and site visits across heavy industries.

In 2024, Khunte was promoted to Head of Sales & Marketing for the company’s Europe, Middle East, Africa and India (EMEAI) region. The position broadened her international market exposure and strengthened her strategic and commercial leadership capabilities.

Commenting on her appointment, Ashwini Khunte, General Manager, Martin Engineering India, said: “India represents a tremendous opportunity for Martin Engineering. The country’s continued investment in cement, mining, steel, power and infrastructure is creating increasing demand for safer, cleaner and more productive bulk material handling, and that’s exactly what we do. My priority will be to build on the strong foundations already established in India, while continuing to develop our people, strengthen customer relationships and bring practical solutions to the challenges faced by our industry.”

Robert Whetstone, Area Vice President – EMEAI, Martin Engineering, highlighted Khunte’s technical expertise, market understanding and leadership experience.

“Ashwini brings an exceptional combination of technical understanding, customer knowledge and commercial leadership. She has grown as Martin Engineering has grown, and has consistently demonstrated outstanding capability to transform her expertise into practical solutions. Her knowledge of the Indian market, together with her international experience, makes her ideally suited to lead our India business through its next stage of growth for years to come.”

Since establishing its Indian business in 2012, Martin Engineering has expanded its local workforce, manufacturing capabilities and dealership network. The company supplies conveyor products, transfer point solutions, material flow aids, training and technical support to bulk material handling industries. Khunte’s appointment positions the company to further strengthen customer relationships and expand its solutions portfolio in India’s growing industrial and infrastructure markets.

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Concrete

Fornnax Wins AIRIA’s Special Export Award for Rubber Machinery in 2025-26

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Fornnax Technology Pvt. Ltd. has been honoured with the Special Export Award – Rubber Machinery for 2025–26 by the All-India Rubber Industries Association (AIRIA), in recognition of its highest exports of tyre recycling plants to the European region.

With more than a decade of experience in India’s tyre recycling industry, Fornnax has contributed to the development of advanced recycling technologies and infrastructure. The company currently holds a 90% market share in India’s domestic tyre recycling sector, while exports account for 30% of its business, spanning markets such as Europe, Australia and the GCC.

The award marks another milestone for Fornnax, whose tyre recycling lines and advanced shredding technologies are supporting the growth of the circular economy in India and international markets.

Commenting on the recognition, Mr. Jignesh Kundaria, Founder and Director of Fornnax, said:

“This honour from AIRIA is a reflection of an incredible journey we have undertaken over the years. When we started Fornnax, there was no established recycling industry in India to follow. We chose to build for the future instead. Today, when you see India’s tyre recycling sector, it has already transformed into a dynamic, high-growth industry and we are extremely proud to have played our part in building it.”

Unlike standalone equipment suppliers, Fornnax focuses on developing complete, high-capacity recycling infrastructure. Its integrated systems combine multiple stages of shredding and size reduction to enable efficient, continuous operations. This system-level engineering approach helps recycling operators improve throughput, equipment reliability and operational consistency.

The recognition reinforces Fornnax’s commitment to developing engineering technologies that contribute to a more efficient and circular recycling ecosystem.

Looking ahead, the company aims to expand its international presence while continuing to develop advanced shredding and recycling solutions to address the growing volumes and evolving requirements of the global recycling industry.

For more information, visit: www.fornnax.com

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