1 take this opportunity to share with you the achievements of your company during thefiscal 2016-17. Despite many economic and business challenges your company has managed toachieve steady performance. I am pleased to inform you that our Truly Indian' organicproduct category was nominated in the recent prestigious SOFI awards of 2017 held bySpecialty Foods Association USA and it bagged
2 silver awards. Our products Delhi Lentils (Dal Makhani) won a silver award under theSavory Appetizer Soup & Stew category and Delhi Potatoes (Aloo Matar) secured asilver award under the Vegan Product category.
To highlight the financial performance the fiscal year 2016-2017 showcased steadyperformance with standalone revenue from operations (net) of Rs. 166.73 Crore as againstRs. 160.90 Crore in the previous financial year. The net profit (after tax andextraordinary items) for the financial year 2016-17 was Rs. 12.37 Crore as against Rs.14.10 Crore in the previous year. The reduction in the net profit is mainly due to twofactors. One of these is the high input cost of major raw materials and the other is thedevaluation of sterling pound on account of Brexit which has impacted revenue and profitsof our UK business.
Our consolidated revenue from operations for the financial year 2016-2017 was recordedat Rs.202.25 crore as against the previous year's figure of Rs. 210.05 Crore. Despite theslight reduction in the revenue we managed to achieve an impressive growth of over 60% inthe net profit over the previous year. The net profit for the year under review stood atRs. 10.84 Crore while the previous year's net profit stood at Rs. 6.61 Crore. Thisimprovement in the profitability could be achieved on account of improvement in our USoperations through cost control measures.
During the year under review we launched four exciting new dipping sauces under ourFlagship brand 'ADF Soul' in the domestic market. Moreover we have widened the productportfolio of our International brand 'Ashoka' by launching 'Dosa Wraps'. All the newproducts have received an encouraging response from the consumers.
During the financial year 2016-17 your company successfully completed the buyback of798539 equity shares through open market route. A sum of Rs. 96307029/- excluding thetransaction cost was spent by the company for the buyback which is represented by 53.50%of maximum buyback size.
I am delighted to inform you that the Board of Directors has recommended a dividend of25% which is by far the highest ever to be paid by your company.
As you are aware your Company is commited to relentless CSR programs as a responsiblecorporate citizen. Our CSR activities include educational aid for the underprivileged anddisabled students medical aid for the needy people eradication of poverty and hungeranimal welfare and environment protection.
I would like to take this opportunity to thank all our stakeholders for theircontinuous support to ADF. With the trust and confidence of our shareholders we are readyto take on more challenges. Thank you.
With warm regards
Ashok H. Thakkar