Arfin is consistently and strongly investing in products and technologies thatwould make sure powerful as well as rapid growth of the Company. The Company iscontinuously stimulating markets with addition of new product lines that will seize theincreased market demand.
We are pleased to share with you the Annual Report of your Company for the financialyear 2015-16. During the year your Company has delivered strong performance achievedGross Sales of Rs.31977 Lacs Profit After Tax of Rs.660.98 Lacs with EBIDTA margins of5.48%. The Earnings per Equity Share has increased to Rs.21.90. Your Company has sold20000 metric tons of goods during the year. It has been an eventful year seen in thecontext of addition of new product lines and capacity expansion. The core businessportfolio has performed very well with all the key segments posting steady growth led byAluminium Deox and Aluminium Wire Rod businesses. During the year the Company hascommenced commercial production and sales from Alloys and Cored Wire business. The CoredWire Plant was started during March 2015 and got matured during the year. Set up of Cable& Conductors Plant has been completed during the year and trial production from thisplant has also been done. The Company is in process of getting ISI Mark and otherregulatory approvals to start commercial production from the Cable & Conductors Plant.
The role of new product lines is bringing together a range of products which hasdiversified and is in process of diversifying further the existing businesses throughaddition of new products viz. Alloy Products Cored Wire Products and the Company's entryinto the Power Sector through Cable & Conductors Plant.
Your Companys increased & balanced portfolio of products and operational excellencehave been the key drivers of this worthy performance.
Your Company's focus on building and strengthening a wide portfolio of products hasstarted delivering results.
We are happy to share that your Company is one of the fast growing organizations in theAluminium Sector.
The existing plant of Cored Wire is running at full capacity and is fully booked for2016-17. Your Company has ordered one more machine of Cored Wire to meet the increasedcustomer demand. This second plant is expected to be commissioned for commercialproduction during the 3rd quarter of 2016-17. Your Company has started commercialproduction from Alloy Plant during the year. Alloy business picked up well during lastquarter of 2015-16 and currently the plant is running at full capacity. The Company isplanning to expand its present capacity of Alloy Plant to fulfill increased customerdemand.
During 2015-16 all key macro metrics which influence the growth of the economy havebeen improved. The fiscal deficit and inflation has been stabilized. More relevant theseimprovements are sustainable in nature as the policy framework like aligning domestic oilprices to global movements for instance have been implemented. Further large investmentsby government in roads railways defense and other sectors will play a catalyst role inreviving the economy.
Interest rates too are trending downwards apart from a possibility of good monsoon.These factors will create a more enabling environment for large and small businesses goingforward.
Overall prospects of the Company appears to be bright given its performance efficienttreasury management and robust credit appraisal system. Branch presence across the countryhelps the Company to enhance the growth rate achieved by it since last few years.
Our desire goes beyond becoming a larger robust Aluminium Products manufacturingCompany. Based on detailed deliberations we have decided to focus on these six productlines viz; Aluminium Wire Rod Aluminium Deox Cored Wire Alloy Products AutomobileProducts and Cable & Conductors which we believe have robust sales potential in Indianas well international markets.
Power sector entry will be a cornerstone of robust growth and development to theCompany and we will be able to sustain this growth on account of better margins due toforward integration of the product lines.
I would like to assure you that all our employees are working extremely hard with greatdedication high energy and strong commitment for your Company. I sincerely thank themall. I would also like to thank all our stakeholders for reposing their faith in us andthanks to our regulators for their constant support and guidance.
I also express my thanks to all fellow Directors for their invaluable contributionthrough their guidance and encouragement which have been momentous for the success of theCompany. Finally I thank each and every shareholder large and small for your supportand trust.
I assure you that each one of us is committed to build a Company that is high oncorporate governance is of great value for society and is a Company that you will beproud of.
Mahendra R. Shah