FY2016 added yet another milestone in our journey of capturing outstanding growth andconsolidating business parameters on all fronts. We elevated our place in the market andoptimised our resources. The year was indeed challenging. The automobile industry grewmodestly amid sluggish demand and back-to-back weak monsoon for two years. Since ourproducts are primarily addressed to semi urban and rural markets where the economy wasvery weak the impact was further felt. Going forward the likely softening of interestrates will aid the automobile industry maintain its growth momentum.
Talking about Atul Auto in particular we are a company driven by passion. Ourperpetual aim is to face industry challenges innovate and provide cost-effectivesolutions to customers thus reinforcing our industry presence. We are making investmentsin product design and development to deliver high-quality products and be the preferredpartner for our customers.
Year in Brief
We spent the year with a strong focus on protecting our market share and reinforcingour market position as India's third-largest domestic 3-Wheeler manufacturer serving adiverse customer base in the cargo and passenger segments. In particular we performedwell in the cargo segment and increased our market share even as we largely focussed onsustaining our market share in the passenger segment. All in all we consolidated ourpresence in the domestic market reinforced our core products and tried to make the bestof a weak market within India's rural pockets. The good news is that the prospects for anormal monsoon this year look bright. This is expected to help the economy pick up furtherand lead to improved demand in the automobile sector.
Despite a difficult market environment we grew our top line by 5.5%. We reportedvolume growth of 5.5% during the year at 43893 units outperforming the 3-Wheeler marketwhich reported flattish growth. Our turnover jumped 7.74% to Rs 528 crore compared to Rs490 crore in FY2015. We recorded 6.76% growth in revenues at Rs 532.36 crore vis-a-vis Rs498.66 crore whereas our Profit After Tax jumped 16.83% at Rs 47.40 crore in comparisonwith Rs 40.57 crore in the previous year.
Our performance has been a combination of operational efficiency our continuous effortfor negotiating with vendors and the falling commodity prices which improved our marginsgrowth. We realise there is room for further margin improvement in the years ahead. WithIndia's economic growth looking up and sentiments in the automobile sector in general andthe 3-Wheeler segment in particular looking up we foresee noteworthy growth in marginsover the next couple of years. With higher operating leverage lower raw material costsgood working capital management we strive to generate a strong ROE.
A prime highlight of the year under review was the rolling out of our 0.35 tonne petrolbased three-wheeler available in alternative fuels i.e. Petrol CNG and LPG variants.Widening of our product basket will finally plug a long-standing gap in our productportfolio thereby becoming our key driver for future growth. The petrol- based 3-Wheelerpassenger vehicles market represents an addressable market size of 6 lakh units a marketwe were so far not able to penetrate. We made a soft and steady entry through selecteddealers and small volumes in this segment. We are seeding the product in the right marketwith the right strategy. And over the years we shall make gradual inroads into thedomestic and export markets with this variant.
Owning Our Future
At Atul Auto we remain confident of owning our future. We are not only deliveringresults today but also preparing ourselves for the future. We are scaling higher and alsomaking the right investments to further strengthen our innovative core and lead change.Not only this we are also leveraging the addressable market optimally by servingsomething new to our customers constantly. We are getting our act right to perform in theshort term while making bold and transformative moves to realise future growthopportunities and create long-term shareholder value.
Our growth agenda includes an aggressive push into the export market. We are working onour new export strategy and targeting strong growth in exports by entering new markets andsecuring new contracts. Our motive is to enhance our presence on the domestic frontbesides gaining an aggressive push in the export market too. Our focus is also to improveour productivity increase operational efficiency and improve operating leverage tomaintain double-digit growth momentum.
Being a value-accretive and solutions driven company we are constantly fine-tuning ourgrowth strategies and leveraging our intrinsic strengths to create and deliver value toour stakeholders. We are navigating confidently to capture future growth through increasedvolumes and enhanced market share in the domestic and global markets. Although we stillhave a lot to achieve in the coming years Atul Auto has established itself as a Brand toreckon with and generates a strong preference among its various customers across segments.
As we continue to enhance and implement our plans we are simultaneously advancing ourstrategic framework for long-term shareholder value creation. When I pause to reflect onhow far we've come over the past few years and how much further we'll go in the next oneI couldn't be more excited and optimistic.
My colleagues and I are excited and confident about the cognitive future and we areworking hard with our esteemed customers partners and employees to build it. I am proudof the team for bringing us here and I am grateful to you our shareholders for yoursteadfast support.
Jayantibhai J. Chandra
Chairman and Managing Director