In FY17 Indian economy continued its path of expansion crossing many hurdles alongthe way (like demonetization impact of adverse geopolitical events like Brexit USPresidential elections etc). Indian GDP is expected to grow at 7.1% for FY17 as wecontinue to be the fastest growing amongst large economies in the world according to IMF.Amongst other macro-economic indicators inflation (CPI) continued to glide lower for theentire FY17 and had averaged around 4.53% for the year FY17. The RBI has further set atarget of 4% by the end of FY18. The fall has been mainly due to lower MSP increasessteady commodity prices and structural supply side reforms further aided by a goodmonsoon after two years of weak / drought like monsoon. Within CPI it is the core CPI(i.e. ex food and fuel) which remains sticky. Food inflation remained low as global agricommodities prices fell and good rains kept domestic food prices in check. IndustrialProduction has remained the Achilles' heel for Indian economy for the past several yearsand still continues to be so. The IIP growth slowed down to 0.48% compared with a 2.4%growth in the previous year largely due to excess capacity in the system. On the externaltrade side exports have started to look up since the start of Q3 FY17 on account of alow base and also on account on improvement in the global economy. Moreover the popular(and widely tracked) twin deficits of the country CAD and Fiscal Deficit continue toimprove and are expected to be around 1.3% and 3.5% respectively as compared to 1.3% and3.9% respectively in the previous year.
As far as investment flows are concerned the story of the year was rise (andsubsequent sustenance) of domestic institutional investors' flow which matched the FIIflows dollar for dollar. So while FIIs invested Rs.540 bn DIIs pumped in Rs.547 bnduring the year FY17. FII flows are expected to improve in FY18 as government reformsboost growth. Macro indicators also continue to be better than other comparable emergingmarkets.
On the primary market front FY17 saw a very healthy pipeline being executed.Interestingly out of 21 large IPOs almost 15 companies have beaten the Sensex'sperformance. Even on a standalone basis the BSE IPO index was up by a whopping 32% for thefiscal year. Nearly Rs.28000 crores was raised by these IPOs the highest since FY10-11.
Further 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.7.27 crores in FY 16-17. Incomefrom operations of the Company for the FY 16-17 is Rs.133.11 crores as compared toRs.127.65 crores for 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