It gives me immense pleasure to connect with you through this 44th AnnualReport of your Company. The Indian economy has once again demonstrated its inherentresilience with a healthy GDP growth of 7.6%. Weathering twin consecutive monsoondeficits the Government has increased its focus towards rural economy in the Union Budget2016. Impending structural reforms shall further strengthen the economy and augment theease of doing business in India. An above average monsoon forecast backed by continuedforeign investments can reinforce countrys socio-economic growth.
Sharing a glimpse of our FYI6 business agricultural machinery segment constitutes 59%of the Companys revenue. A slowdown in global agricultural machinery industryincluding India curbed our top-line growth in FYI6. However during the year we havefocused on improving our overall efficiencies at an organizational level. During the yearour gross revenue declined by 4% and stood at Rs. 433.31 crores. Our FYI6 EBITDA improvednotably by 33% and stood at Rs. 33.18 crores due to various cost saving initiatives. Weended FYI6 with a net profit of Rs. 0.24 crores vis-a-vis loss of Rs. 4.21 crores in FYI5.We continue to stay the course towards our journey of creating a sustainable organizationvia technology & design improvements scale & efficiency optimization and customer& geography expansion.
We have shared our value engineering competence at an embryonic design stage which haswon honour and prestige for our products amongst our global clientele. Investments towardstechnological advancements have begun yielding its fruits. We have developed in-housesoftware solutions to optimize the various parameters of gears in bevel and transmission.We have developed state-of-the-art crown wheel and pinions for a variety of applications.We have a dedicated team of engineers to optimize gear profiles in bevel and transmissiongears. Metallurgical parameters of all gears are regularly analyzed with a vision toimprove the gear life at optimum cost. Technological collaboration with AFC- Holcroftappends innovation quality and reliability to the Furnace division. While theauto-components products are engineered to excellence highest design and quality control.
Being one of the world leaders in gears and transmission technology we are serving thefinest gear and transmission technology to our clients. To have a complete transmissionset-up is our long-term goal. Currently most of the OEMs in
India are developing in-house powertrains. But in developed countries they outsourcecomplete gearboxes to a specialist manufacturer. Unfortunately in India OEMs preferto follow the in sourcing route to keep a firm check on the vehicles overall costs.We are confident of delivering a superior product at competitive rate. We aim to be aholistic transmission supplier in India as the market matures.
Overall cost competencies at our capacities have been optimized by implementation ofLEAN manufacturing approach. Initiatives like TQM Quality Circles safety audit Kaizenmachine health check up report visual management machine risk assessment audit hasincreased efficiency and enhanced savings at plant level.
We have consciously continued to maintain a long term strategy focusing exports. Wehave developed export-oriented quality products through our enhanced production process.Further cordial customer relationships with prompt logistics and design stagecollaboration with clients has further improved our export credentials. Make-in-India haspropagated us to diversify into nonautomotive segments with backward linkages along withour existing business. We have made a mark already in the agricultural vehicles segment.We are eyeing at the passenger car defence industry and also intend to roll out hi-techindustrial gears after consolidating our existing operations. We also sense hugeopportunities in aviation and aerospace industries.
We maintained our journey towards overall operational excellence in FYI6 and continueto stay the course to meet our long term objective of being a full-fledged Tier-Iauto-component manufacturer.
I would like to take this opportunity to express my gratitude to all the stakeholdersfor their firm belief in Bharat Gears Limited and also extend my gratefulness to ourhuman capital for their continual passion dedication and valuablecontribution.
Surinder P. Kanwar
Chairman & Managing Director