POWERED FOR SUSTAINABLE GROWTH
Over the years we have established strong foundations for sustainable growth. Ourdiversified portfolio and presence across geographies gives us the resilience to weatheradverse conditions in particular segments or markets. Through focus onapplication-oriented innovation we are able to add further value to existing customersand also tap new markets.
I am happy to report that your Company recorded impressive performance in the financialyear (FY) 2016-17.
Maintaining the momentum of growth recorded in the past few years your Companyachieved a turnover of ` 868.72 crores and convincingly crossed the milestone of earningover ` 100 crores as profit before tax (PBT). Your Company's PBT in FY 2016-17 was `121.83 crores 40% higher than the figure recorded in the previous year. The return oncapital (net worth) also crossed the milestone of 25%.
Considering the performance your Board of Directors has recommended a dividend at `3.50 (35%) per share and a special one-time dividend at ` 1.50 (15%) per share tocommemorate the completion of 40 years of the Company. The aggregate dividend is thus ` 5(50%) per share.
Significantly your Company attained new heights despite hardening global commodityprices and an uncertain geo-political environment. We could aggressively tackle thesechallenges because over the years we have established strong foundations for sustainablegrowth. Our diversified portfolio and presence across geographies gives us the resilienceto weather adverse conditions in particular segments or markets. Through focus onapplication-oriented innovation we are able to add further value to existing customersand also tap new markets.
In the year under review the Indian economy continued to grow at an impressive rate. Arelatively good monsoon led to an increase in the agriculture growth-rate. However thiscould not translate into demand for our products due to delays in subsidies and variousregulatory issues. Growth in the industrial sector was moderate. The inflation rateremained fairly stable.
Our new and innovative products for the domestic fisheries sector received goodresponse and we were able to record large increases in volumes of sale which alsocontributed to our bottom line. The geo-synthetics division also made notablecontributions by securing some large orders that were matched by high-quality executionskills.
The global economy was marked by some signs of recovery. Short-term fluctuations in therupee were an issue of concern but your Company could meet this challenge comfortably dueto its conservative hedging policies. Focusing on markets for new products introduced inthe last few years your Company recorded increases in export sales volumes as well asprofits. Your Company achieved a remarkable breakthrough in the largest aquaculture marketin the world and initiated a trend to move away from use of nylon to polyethyleneproducts in this industry segment.
Your Company's performance was possible due to the collaborative efforts of internalteams working relentlessly towards common goals. We followed up on enquiries speedilyconverted them to orders and then delivered within good lead times with reasonablemargins. In FY 2015-16 we had initiated transformations in our plant operations and inthe year under review we reaped the benefits in terms of significant improvement inuptime. Through planned efforts to enhance our visibility we improved our customersatisfaction score. Efforts to enrich our employee engagements have become an integralpart of our business strategy. This is reflected in significant upward movement on thisparameter according to the findings of an independent survey.
Your Company continues to play the role of a responsible corporate citizen. In the yearunder review we contributed towards improvement in school education by way ofinfrastructure and education materials and facilitated better and more accessible healthcare. We also took significant efforts for protection of the environment.
Looking at the future your Company's prospects are positive. In the short term theeffects of the new Goods and Services Tax (GST) regime on distribution channels areuncertain but we expect this situation to last only for a few quarters and it would notimpact the strength and effectiveness of our core strategy. Likewise we are confident ofaddressing the challenge of hardening material costs by offering products that deliversuperior value.
With a strong cash-flow position specific plans for new business lines and a highlyenergetic team that is not content on resting on its laurels your Company is wellpositioned to maintain growth.
We will continue to work with a strong focus on volumes and profits. We are committedto continuously improve our products and services work with entrepreneurial zeal enhancestakeholder value and enrich our bonds with employees and business partners.
I would like to take this opportunity to thank all our stakeholders for their continuedsupport which has helped the Company achieve sustainable and profitable growth. I lookforward to your continued support in our effort to reach new milestones.
With warm regards
V. R. Garware
Chairman & Managing Director