VICE-CHAIRMAN-CUM-MANAGING DIRECTORS OVERVIEW
"If we are facing in the right direction all we have to do is keep onwalking"
We have always believed that great companies that are founded with a strong vision andbuilt on solid values are the ones that thrive and live on. These are the companies thatovercome challenges and excel beyond the competition beyond economic cycles andeventually beyond lifetimes and generations. These are businesses that give theircustomers and society the reason why they exist serving social needs while stilldelivering performance growth and numbers.
At Ind-Swift we have created a culture of creative optimism of caring for people andour communities. This is what has helped us innovate and deliver strong performance evenin the time of adversities consistently. We are committed to care to perform to nurtureand to share.
We are engaged in continuously sharpening our competitive advantage. In the rapidlychanging landscape of technology and commerce in business it is essential to continuouslyfine tune our growth engine. We are laying renewed emphasis on bringing superior productsdesigning innovative processes and building people's capabilities. Our people remain atthe center stage of our performance.
We have had another year of sustained performance be it revenues margins and enhancedEBIDTA. The Company continues to strengthen its position as an innovation-ledtransnational pharmaceutical company which reinforces our belief that a strong businessmodel the right business practices like-minded people a lucrative pipeline andinvestments in strategic growth pays rich dividends even in the face of increasedconsolidation competition and a volatile economic environment.
In FY 2015-16 all our key markets delivered and we continued to improve on operationalperformance which resulted in sustained revenues of Rs. 6387.40 million despite theclosing down of the menthol sales. Exports sales grew by 3.56% to Rs. 4457.58 millionEBITDA grew by 8.74% to Rs.1208.81 million and our Net Losses reduced from Rs.1191.63million to Rs. 588.61million during FY 2015-16.
Continuing from the last year we remained focused on increasing the manufacturing sales. We have almost closed down the menthol division and its related sales . The year 2015-16has been significant in terms of the increase in capacities of our key products where weenhanced capacities of our few key molecules by 10-20% through de-bottlenecking andprocess improvements despite there being adverse pressures as to liquidity and workingcapital.
Japan continues to be the future growth market of the Company and the company remainedfocused on this market in the FY2015-16 . The revenue from the Japan increased by almost30% during the year. Exports has been the key growth factor of the Company. Our Accreditedfacilities advanced processes technologies and sustained quality has enabled us to buildour customers faith over the years. The Company facilities which enjoy all the majoraccreditions is one of the largest facility in the Northern India in terms of theproduction volumes.
We continue to increase our internal strength through process innovation and processre-engineering. All these years our people have been the main stay of the Company whichenabled the Company to face the tough strides strongly and eventually we are on the vergeof emerging as a winner shortly.
During the period under review relentless efforts have been made to settle the banks.Resultantly six accounts of the Company has been transferred to the Asset reconstructionCompanies and sincere efforts are being made to settle the other banks also. Once this isachieved the Company will be able to chalk out the future core strategy of planning andmanaging the growth.
During the year Company has paid a sum of Rs. 568.47 million towards Direct / IndirectTaxes and Statutory Dues. The Companys overall economic activities has created avalue of over Rs. 1450 million during the year for its various stake- holders. The Companyin this year has also been able to reduce its Fixed Deposit exposure from Rs. 823.30million in the year 2014-15 to Rs. 670.30 million in 2015-16.
We realize that with growth comes responsibility and accountability. We must manageexpectations of all stakeholders and commit to deliver superior performance each time.There is a need to continuously raise the bar and reinvent ourselves. We must focus beyondperformance and intended outcomes. We are continuously evaluating various aspects of ourbusiness and how they impact our preparedness to achieve our objectives. Our ability tochange adapt and improvise shall remain the key to our growth initiative.
I appreciate the Support provided by our customers bankers creditors fixed depositholders shareholders and above all employees. They have shown their unflinched faith inthe Company and Company too will reciprocate in times to come.
N. R. Munjal
Cum Managing Director