In FY16 the economic indicators as compared to FY15 with primary indicators like GDPCAD and others being better compared to the previous year. GDP is expected to grow at 7.7%for FY16 compared to 7.10% in FY15 and makes us one of the fastest growing economies inthe world according to IMF. Among the secondary indicators inflation as measured underCPI has fallen to 4.91% and has been lower than the RBI target of 6% by Jan'16. The fallhas been mainly due to lower MSP increases and fall in crude prices to multi year lows ofUSD 30 levels. Despite a lower than expected monsoon and uneven rains during the yearfood inflation remained low as global agri commodities prices fell. Index of IndustrialProduction growth has been on par with previous year as manufacturing has been weak due toa global economic slowdown and capacity utilization still having scope to improve. The onemajor indicator which has been weak has been trade data as exports have shrunkdrastically.
There was an outflow of USD 2.51bn from FIIs in FY16 against the inflows of USD 45.44bnseen in FY15 as markets were volatile in FY16 due to various global factors. FY16 sawoutflows from both debt and equity markets as equities saw outflows of USD 2.01bn whiledebt saw outflows of USD 0.51bn. FII flows are expected to improve in FY17 as governmentreforms boost growth and since macro indicators are much better compared to other emergingmarkets.
Your Company's continued focus on cost reduction and productivity enhancementinitiatives supported by market buoyancy have resulted into considerable gains both inrevenues as well as profitability. Further we enhanced our product offerings and reachedout to specific profitable segments successfully.
Your Company reported a consolidated net profit of Rs.3.33 crores in FY15-16. Incomefrom operations has remained stable at Rs.127.65 crores as compared to Rs.126.45 croresfor the previous year.
Given the underlying potential of Indian markets in the long run we continue to bepositive on the long term potential in India and expect retail investors to increase theirparticipation in capital markets. Your Company will continue to work towards creatingenduring value for its stakeholders and customers by converting challenges intoopportunities.
Gopi Krishna Tulsian