I am pleased to be connecting with you in the matter of your Company's performance andprospects relating to yet another year.
Overall Year 2016-17 was reasonably good an improvement on the previous year. Itslast quarter in particular showed encouraging signs of recovery in demand for CalcinedPetroleum Coke (CPC) in India. As you are surely aware the demand for CPC mainly dependson growth in the aluminium and steel industries. Both sectors are expected to grow as aresult of Government's increased emphasis on planned infrastructure spending in comingtimes. These signs and developments marked by a growing demand for metals bode well foryour Company given that our product is certain to be correspondingly in demand as well.
You will have observed that during the year that we are reviewing the Company sold159579 MT of CPC from which a spurt in demand was witnessed in the year's last quarter.This rise came via the aluminium sector along with of course judicious foreign exchangemanagement by Company officials.
Considering the pace of industrial growth in the country I am sanguine about FiscalYear 2017-18 closing on a positive note across the economy. This positivity is expected toset a robust growth path for your Company in this as in coming years.
The Company's plants located at St. Jose de Areal in Goa Bilaspur in Chhattisgarhand Paradeep in Odisha are fully operational and each reported a high level of capacityutilization. This stands us in good stead as we gear up to meet the increased demand forCPC from manufacturers of aluminium graphite electrodes and titanium dioxide.
The positive outlook we hold for CPC demand is mainly based on measures towards rapidcapacity enhancement being undertaken by aluminium smelters in India which is expected togo up from 2.8 million tonnes in Year 2016 to 4 million tonnes by Year 2020. Increasedcapacity utilization in aluminium ought to boost power and construction projects besidesthe automobile sector resulting in higher demand for CPC with consequential effectsbeneficialin nature on your Company's profit margins.
All the same I would wish to introduce a word of caution here. The two major factorson which the growth and profitability of CPC manufacture depend are the Rupee-Dollarexchange rate and the availability of the right source of raw material at a price that iscommercially viable. As you know the Company sources its major requirement of raw materialfrom the People's Republic of China. Any unfavourable exchange rate fluctuation ordisturbance in raw material supply can alter an otherwise steady course of operations andresults.
Scrupulous corporate governance and ethicality in management are integral to businessat Goa Carbon Limited values which we see as essential for the growth of the company.Like all responsible corporates we wear two hats: On the one hand we constantly strivetowards efficiency in systems and operations aimed at being globally competitive and onthe other we continually seek to fulfill our social responsibility through ethical andvalue-based management aimed at sustainable development. As part of our CSR we conductprogrammes and activities in the education domain and the healthcare space thereby doingour bit for nation-building. We aim to be a profitable corporate denizen as much as a goodcorporate citizen.
The Union Budget for Year 2017-18 coming as it did in the aftermath of demonetizationlived up to the expectations of India Inc. as Government seeks to revive industrial andinfrastructural growth in the next 12 months. The worthy plan to establish India as anelectronics-manufacturing hub is good news for the domestic metals industry particularlythose engaged in the manufacture of aluminium copper lithium and nickel. The other planto enable high-speed broadband connectivity via optical fibre in more than 150000 villagepanchayats by the end of FY 2018 is equally likely to see higher demand for aluminium andcopper alloys. Both proposals once operational are likely to have a knock-on effect onyour Company's operations.
I have no doubt that on the whole the Union Budget is sound in its aims to reviveinvestment boost manufacturing in sectors such as aluminium and steel and create newjobs in a time frame that is medium to long.
I take this opportunity sincerely to thank all our stakeholders as well as Governmentof India Governments of Goa Chhattisgarh and Odisha Mormugao Port Trust and ParadeepPort Trust various regulatory authorities and our bankers associates and suppliersvariously for their faith guidance support and continued association.
I also express my gratitude to all the Members of our Board and to our valuablecustomers whose trust and confidence in Goa Carbon Limited both inspires and encourages usto overcome challenges and scale greater heights of performance and excellence year afteryear.
Shrinivas V. Dempo