On behalf of the Board of Directors and Management it gives me immense pleasure insharing your Company's progress and performance highlights for the F.Y. 2016-17 that wasoutstanding and reflecting in record of net profit. I would like to express my gratitudeto everyone for their hard work they have put in to achieve this.
This year has been a highly eventful with external headwinds that impacted on businessperformance. The global economy faced uncertainties and adverse impact in the form ofgeopolitical events like Brexit US Presidential elections. Further in the second half ofthe year the Government's demonetization initiative adversely impacted on the cash-basedIndian Economy and further overall market showed signs of recovery in the latter half ofthe year but faced a temporary slowdown in November.
Despite these macro uncertainties and challenging business environment your Companyhas delivered outstanding and excellent performance in F.Y. 2016-17 and achieved a highestand remarkable profit since last 10 years because of the core values developed by theCompany i.e. integrity excellence teamwork social commitment consistent competitiveand responsible growth. We will continue to strengthen our core values to build a richlegacy of corporate governance & transparency and create value for all stakeholders.We believe that these core values particular in times of uncertainties is the best longterm interest of all our stakeholders and a good indication of robust strategy.
Further your Company's continued focus on cost reduction and productivity enhancementinitiatives supported by market buoyancy have resulted into considerable gains both inrevenues as well as profitability and also we have enhanced our product offerings andreached out to specific profitable segments successfully.
During the year Ministry of Corporate Affairs (MCA) made an announcement to conduct a"Swachh Bharat Abhiyan" under the theme of "Corporate volunteering byprivate organizations and corporate entities" which is an integral part of"Swachh Bharat" mass movement proposed by Hon'ble Prime Minister Shri NarendraModi wherein all the employees of Head office and different units of the Company voluntaryparticipated to carry out "Swachh Bharat Abhiyan" under the aforesaid themeduring the period from 16th June 2016 to 30th June 2017.
Financial and Operational Performance of Business:
Your Company is operating in multiple areas and historically one area takes care ofother operating areas in case of negative factors if any. This multiplicity of operationsis thus minimizing the operating eventualities.
In F.Y. 2016-17 your Company posted strong performance with a Revenue of Rs. 3379.07crores EBITDA Rs. 293.58 crores and Cash Profit after tax Rs. 229.97 crores. Your Companycontinues to be the most profitable Company in the agro based and manufacturing industryduring its last ten years performance with a net profit of Rs. 158.55 crores.
Further I am pleased to inform you that the Cotton Yarn Division had the maximumnegatives in past few years. But during the F.Y. 2016-17 this segment has performedextremely well and generated revenue growth of about 26%. The top line growth of thissegment is further applauded as the domestic as well as international prices of yarn haverationalized down as per the input cost and the Company has managed huge jump in revenueby better capacity utilization and higher yield with advanced technology.
In keeping with our tradition of directing surplus cash and consistently rewarding theshareholders the Board has recommended a final dividend @ 40% i.e. Rs. 0.80/- per equityshares of Rs. 2/- each subject to the approval of shareholders at the ensuing AnnualGeneral Meeting for the F.Y. 2016-17.
In addition to this your Company had also rewarded shareholders by taking the decisionof capital allocation by way of buyback of equity shares up to 23684210 of Rs. 2/- eachat a price of Rs. 95/- per equity share through Tender Offer route with an objective toreturn surplus cash to the shareholders achieve long term benefits viz. optimize thecapital structure resulting into improved ratio reduction in outstanding sharesimprovement in earnings per share and enhanced return on invested capital. As a resultthe market share price of your Company increased and reached to highest price level of 52weeks for the F.Y. 2016-17.
Your Company is glad to share with you that the corn milling unit of the Company atChalisgoan is under final stage of implementation and the commercial production isexpected to commence soon in near future.
Overall your Company remains confident and continues to see several opportunities inthe agro based product and manufacturing activities and also expecting good monsoon duringthis current year. Thus your Company is confident of growth from each one its segment onthe back of improving market conditions. Therefore the management has put in plans toenhance operating efficiencies which will allow your Company to scale new heights inperformance.
On behalf of the Board of Directors I would like to take this opportunity toacknowledge the entire team of your Company for their contribution and commitment. LastlyI am deeply thankful to our customers business associates suppliers bankers and legalauthorities for their loyalty and trust in us. Also my sincere appreciation to all ourshareholders for continued support in our journey to create long-term value.
With best wishes