Although the uncertainty is an integral part of economy and business when it iscoupled with unprecedented surprises it makes the life of any business house littletough. At the same time such uncertainty comes with its share of challenges andopportunities. The year passed was full of excitement at both fronts domestically as wellas in the international market where the Company operates. Let me take this opportunity totake you through the key highlights of the growth of the economy developments in 3Wheelerindustry and the performance of the Company in the financial year 2016-17.
The economy was not so sparkling on account of slow GDP growth rate panic oversubstantial NPA in banking system which affected negatively to long term advances by theBanks etc. Still the 3Wheeler industry grabbed the positive momentum and by October 2016the growth rate reached to 11.84%. This led me to believe in the strength of the industry.But the sheer scale and swiftness with which the Indian Government demonetised almost 86%of the currency notes in circulation in November 2016 the fate of the industry changedutterly and the numbers fell to -27.06% during November 2016 to March 2017 resulted inoverall degrowth of the 3Wheeler industry by 5%.
Though the Company has consistently outperformed the industry in last seven yearsFY2017 was the only year when the Company could not maintain its growth momentum. Despiteof such unfavorable circumstances the Company has recorded the profit after tax ofRs.37.30 Cr. The Company sold 38795 vehicles during the year which is 11.61% lower thanlast year. The operating revenue declined by 10.49% to Rs.475.33 Cr and the Profit BeforeTax (PBT) remains Rs.56.52 Cr in compare to Rs.71.53 Cr last year. The cash and cashequivalents increased to Rs.57.10 Cr which was Rs.12.82 last year. The reserve and surplusreached to Rs.169.49 Cr as on March 31 2017 which was Rs.143.40 as on March 31 2016.
I am delighted to share that the Company made a notable progress in internationalmarket by exporting 2288 vehicles in FY17 a big leap from 1532 vehicles last year. Morethan the volume growth the appealing factor is acceptance of newly introduced gasoline3Wheelers in overseas market. This could not be possible without dedicated efforts whenthe global economy was confronting with the negative forces since the export market hasobserved sharp decline by 32.77% in the year due to continuing economic and politicaluncertainties and currency as well as balance of payment crisis.
While the market potential is as large as domestic market I am very much con dentabout the performance of the Company going ahead in international market as the longawaited cyclical recovery in manufacturing and trade is currently underway with supportfrom buoyantfinancial markets worldwide.
With the aim of equipped with all the three wheeler products in the company's basketthe Company has developed 3Wheeler run by electric energy. These e-vehicles are availablein the selective market from November 2016 in Passenger as well as Goods Carrier segment.With the launch of e-vehicles the Company feels proud to present itself as the onlyrecognized player in the 3Wheeler industry in India having complete range of 3Wheelerswhether it is Passenger or Goods Carrier or Customized; Diesel Petrol CNG LPG orElectric driven; 0.35 tons or 0.50 tons capacity; Fitted with Rear Engine or Front Engine.
The implementation of Government policies are going to play vital role in coming year.The key event for coming year is Goods and Services Tax (GST) implementation which willaffect the economy the industry and the operations of the Company. The new financial yearhas started on an encouraging note with the Government's intention to implement the GSTfrom the second quarter of the financial year. GST is being looked at as the singlebiggest indirect tax reform and is poised to push India's economic growth forward bycreating a single national market and enhancing the ef ciency of inter-state movement ofgoods and services. The Company is all way equipped to move with this new era of indirecttaxation.
Obviously the learning curve for all was higher than one's experience; the challengesare not going to end with it. We need to keep on overcoming such obstacles and insulatethe organization to the best possible extent neutral to any unfavorable forces. With thechallenges the year carried with the Company could achieve BS IV compliant manufacturingset up upgraded the products with the niche of the market launch of electric vehiclesemerged as the only player having complete range of 3Wheeler products in the basketstrong tax compliance system ready to move with GST regime.
In the financial year 2016-17 the Company could strategically realign the pace of thegrowth reaffirm the control over accelerator and prudently geared up for the growth.
I take this opportunity to thank all our stakeholders for the faith reposed in theCompany and look forward to your continued support in this journey.
With best regards
J J Chandra
Chairman and Managing Director