My dear Shareowners
The year 2015-16 was no different from the preceding year as the slowdown in the globaleconomy continued in most of the regions. Although there was marginal improvement in GDPgrowth rate in India from 7.3% in 2014-15 to 7.6% in 2015-16 the iron and steel industryin India and world over showed no signs of any improvement. However despite the somewhatgloomy global economic landscape recent developments in India appear positive on GDPalthough the expectations on industrial activity and growth are still moderated. Theeconomic conditions in India with falling inflation and interest rates reasonable currentaccount deficit and the projected GDP growth point to more optimistic prospects for theIndian economy in the future.
Your Company's Position:
The past year reflected a solid performance at Gallantt Ispat. Your Company has onceagain demonstrated its ability to deliver remarkable growth across all its businesses. Ourreputation as an organization that offers a truly differentiated and customer-centricproposition has been reinforced during this period. The total revenue from operations foryear ending March 31 2016 was Rs. 53475.85 Lakh (Consolidated Rs. 57964.76 Lakh)resulting in our good performance. We have achieved our best ever Profit After Tax at Rs.2859.00 Lakh (Consolidated 2914.36 Lakh) for the year ending March 31 2016.
At Gallantt we believe in developing the individual and thus empowering the team andthe organization. It is this philosophy of ours that helps our employees and officers toachieve better results and accomplish goals. We are winning and continuing to achieve theimprobable. We have been able to do this by following a single idea for well over a decadewith fearlessness and persistence; and by continually challenging the fundamentals of howbusiness should be run and brands should be created. We didn't take the well-trodden pathand we didn't follow industry conventions; we created our own path which has led us tothis outstanding success specifically in Northern part of the Country.
The company aims to achieve and Y-o-Y growth in coming fiscals by expanding thecustomer base and increasing the business share with our existing customers. To achievethis goal the company is in the process of increasing the manufacturing capacity. As apart of its long term capex
under first phase of expansion programme the company plans to invest about Rs. 310Crores and Rs. 500 Crores in Second Phase. The Company's continued focus in expanding
business in newer horizons will result in significant growth in terms of profitabilityand sales target. Overall the stage is set for sustainable growth in future and withsustainability as the centre stone of our operations I am confident that going forwardyour Company will continue to move ahead and outperform expectations while continuing tocreate value for all our stakeholders.
C. P. Agrawal