FY2016-17 stood out as an important year in the history of Indian economy as a numberof decisive economic measures were undertaken by the Central Government to keep theeconomic momentum of the nation unabated. It has been observed that although game-changingmoves like the demonetisation and GST have resulted in an initial spell of volatilityover the long-term they are expected to bring in positive impact to the economic growth.
Despite the aforementioned uncertainties Ganesha Ecosphere managed to performreasonably well during the year under review. The growth of our topline and bottomline by4.15% and 20.43% respectively is a case in point. We made this happen by focusing on ourcore competencies to meet a host of anticipated (growth and expansion) and unanticipated(a volatile marketplace) challenges.
Although most of our key performance indicators registered visible improvements duringthe fiscal gone by certain aspects made us go back to the drawing board and recalibrateour strategies in line with the changing circumstances. Our EBITDA rose by 8.27% onaccount of improved capacity utilisation our PAT margin improved by 60 bps reflecting abetter operational management and declining clamping down of overheads. We also processeda record number of PET bottles during the year a whopping 4.52 billion from 4.43 billionin FY2015-16.
Here at GESL recycling for the future' isn't just another statement it's ourabiding philosophy. As such we have over the years leveraged the strength of our businessmodel and the depth and width of our pan-India network to emerge as one of the biggestnames in this niche vertical of ours. From an operational prospective the fiscal gone bywent more or less as planned despite regulatory overhauls and subsequent segmentalinstabilities. We increased our capacity utilisation to 89% by improving the plante_ciencies. We added value at the hands of our shareholders by clocking a healthybottomline growth and sustainable cash flow generation with visible reduction inmanufacturing costs. We also revamped our product portfolio by increasing the proportionof value-added products in a bid to cater to the emerging needs of our clients. The resultwas that we were able to infuse our Balance Sheet with a fresh dose of capital wegrew our book value to Rs 119.98 per share repaid long-term debt worth Rs 30.32 crore(total debt reduced by almost 39% since FY14 while revenue increased by 35% during thisperiod) achieved a long-term debt-equity ratio of 0.32 and recorded a ROCE of 16.05%.
Meanwhile our passion for improvement remains stronger than ever. Over the course ofthe year we set new standards in developing value-added products with greateracceptability. With our state-of-the-art recycled spun yarn facilities we have emerged asone of the pioneers in this field and become a namesake for innovation. In order toreplicate our successes in various parts of India we invested substantial time and e_ortin strengthening our collection network across the country. Consequently we were able tomobilise ~250 tonnes of PET waste per day one of the highest in the industry translatinginto adequate raw material availability to our production lines.
Recognising our responsibilities
With rising concerns over global warming our role in society has never been moreimportant than what it is today. We at GESL believe that through our people and our workwe can address critical environmental challenges and help transform communities. We remaincommitted to the cause of making our planet a better place to live in for the present andthe future generations.
Subsequently we continued to shrink our carbon footprint by cutting down our energyusage and diverting more PET waste from landfills. For instance we recycled a record 4.52billion PET bottles consumed nearly 90000 tonnes of PET waste saved nearly 6.02 laccubic yards space from turning into landfills and eliminated 1.22 lac tonnes of CO2.
With increasing awareness more and more consumers are shifting their preferencestowards recycled PSF materials and government policies are also supportive ofenvironment-friendly practices by the private sector. In-keeping with our strategy toremain the market leader in the segment we will continue to enhance capacities intargeted geographies and at the same time focus on increasing utilisation rates atexisting plants. Your Company is on track towards completing its additional 21000 MTPAplant which is expected to become operational during second half of FY2018. Thisadditional expansion will enable us to recycle more than one lakh tonnes of PET bottlesstrengthening our market leadership position in the organised recycling segment. The focusof your Company has always been to maintain high levels of quality in products throughinnovative research and technology development across processes products andapplications. We believe that our hard work dedication and innovative technology willhelp us create sustainable value for all our shareholders.
I express my sincere gratitude to our shareholders investors and banks who continue tosupport us and without whom we would not have remained the largest and oldest company inIndia to recycle PET bottles into valuable products. Hence I wish to express myappreciation to our employees and my colleagues on the Board for their tireless e_orts andcontinued confidence in your Company. Let me assure you we continue to stay focused onbuilding a strong and sustainable business at Ganesha and enhance stakeholders' values inevery possible way and we solicit your support for the years to come.
With warm regards Yours Sincerely
Shyam Sunder Sharmma