It is with a great sense of pride that I address you with another year of commitment todeliver strong performance both operationally and financially. The journey oftransformation which began in 1967 with modest operations has started to bear fruits nowas CMI Limited strengthened its presence in the highly competitive Indian wire and cablemarket. The synergetic acquisition completed in the last fiscal year has been movingsteadily towards the envisioned direction as evidenced by higher capacity utilizationincreased average realizations and growth across products and sectors. The Company has yetagain delivered robust financial performance on a standalone basis with gross salesrising to Rs.343.8 crores from Rs.269.9 crores posted in the previous year and net profitincreased to Rs.20.1 crores from Rs.17.0 crores reported in the corresponding period lastyear. This impressive financial performance underpins the strength of our business modeland our strong positioning in the wire and cable market. On a consolidated basis grosssales climbed to Rs.420.7 crores from Rs.269.9 crores a year ago while net profitexcluding extraordinary items grew from Rs.27.0 crores in FY2015-16 to Rs.30.1 croresposted in the current fiscal year.
The past year signified our acquisition of General Cable Energy India Private Limitedpresently known as CMI Energy India Private Limited (CMIE) a wholly owned subsidiary ofCMI Limited. During the year we focused to enhance the capacity utilization at our CMIEplant located at Baddi which started to contribute substantially to our topline. Ourproduct offering from CMIE not only complements our current product portfolio but alsoprovides us with an opportunity to cross-sell and acquire new clients across sectors andgeographies. On the operational front Indian Railways continued to remain our topcustomer while we explored new business avenues in the renewable space through ourofferings of cables for solar power projects. During the year we bagged significantorders from Indian Railways Bharat Heavy Electricals Limited and other PSUs and continuedto receive approvals for newer products from our clients. At the end of the year we haveorders in hand worth more than Rs.300 crores for both the plants located at Faridabad andBaddi to be executed within the timeframe of six-to-eight months providing significantrevenue visibility for the near term. Our strong order book experience in implementinglarge projects and highly capable management team empowers the Company to steer in theright direction going forward.
The rejuvenation of the Indian economy in the past three years is a big positive forthe overall wire and cable industry. With the International Monetary Fund (IMF) projectingthe Indian economy to be one of the fastest growing economies in the world we believethat our Company is well placed to benefit from the expected traction in the Indianeconomy post the demonetization and ongoing structural reforms such as the recentintroduction of the Goods and Services Tax (GST). The Government of India's impetus toboost the economy through several of its key projects such as 'Make in India' 'Smart CityProgramme' 'Housing for All' 'Power for All' and 'Digital India' are likely to translateinto higher orders for our Company. Similarly the government's massive planned capitalexpenditure for Indian Railways Metro projects Infrastructure Housing and Power T&Dsector is likely to prove beneficial to our Company in the long-term.
We continue to acknowledge integrity excellence customer satisfaction respect andsafety for people as the fundamental cornerstones of our eventful journey. We are movingforward to achieve sustainable growth for our organization through investment in R&Dand commitment towards delivering high-quality innovative products. To further expand ourproduct offerings we have envisaged a capital expenditure to the tune of Rs.20 crores inplant and machinery. We always thrive to maximize shareholders value and have taken a stepforward in that direction by recommending a final dividend of Rs.1 per equity share forthe financial year ended 31 March 2017.
I take this opportunity to thank all our shareholders for their continued support andtrust in the Company and the management. I also sincerely extend our gratitude to all theemployees for their immense contribution and dedication in nurturing the growth of theCompany. I remain optimistic that we together can make a difference and achieve newerpeaks for the Company going forward.
Chairman cum Managing Director