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Jubilant Industries Ltd.

BSE: 533320 Sector: Agri and agri inputs
NSE: JUBLINDS ISIN Code: INE645L01011
BSE LIVE 15:40 | 18 Aug 222.20 -3.15
(-1.40%)
OPEN

224.10

HIGH

224.10

LOW

218.85

NSE 15:48 | 18 Aug 220.05 -7.60
(-3.34%)
OPEN

225.15

HIGH

225.15

LOW

218.00

OPEN 224.10
PREVIOUS CLOSE 225.35
VOLUME 2750
52-Week high 418.00
52-Week low 175.00
P/E
Mkt Cap.(Rs cr) 265
Buy Price 222.20
Buy Qty 438.00
Sell Price 0.00
Sell Qty 0.00
OPEN 224.10
CLOSE 225.35
VOLUME 2750
52-Week high 418.00
52-Week low 175.00
P/E
Mkt Cap.(Rs cr) 265
Buy Price 222.20
Buy Qty 438.00
Sell Price 0.00
Sell Qty 0.00

Jubilant Industries Ltd. (JUBLINDS) - Chairman Speech

Company chairman speech

Dear Shareholders

It gives me immense pleasure to write to you at the end of an exciting year – ayear full of opportunities and growth for chemical industry.

The macroeconomic environment during FY 2016 was stable with a positive sign of revivalof growth. Lower crude prices and depressed commodity prices have helped the government tokeep deficit under control. However monsoon deficit for the second year in a row has nothelped in controlling inflation. Government has also not been able to get GST bill passedwhich will have big impact on most of the domestic businesses.

Another positive sign for your Company is government’s commitment to give a boostto agriculture sector through higher budgetary allocation for agriculture and irrigation.Also government’s investment in infrastructure sector and ‘Skill India’initiative will help the industry as a whole.

Your Company is in a great position to take advantage of all these positiveenvironmental factors. Last year we have gone through a big restructuring exercise andfocussed our energy on the core businesses. We took some hard decisions which are payingoff now.

Agribusiness

Agri-business has been going through a negative business cycle for the last three yearsdue to irregular and deficient monsoon. In such a market we decided to focus on our coremarket of Uttar Pradesh to improve our profitability and optimize ROCE in this business.

With some tough measures taken by the management your Company’s performance atPBT level in second half of the year improved remarkably.

Fuelling Growth

Our strategy to focus on Performance Polymer business has yielded desired result. Inthe second half of the year for Performance Polymer revenue growth is subdued due to apricing structure which is a pass through for key raw materials in B2B businesses (theyare lower this year due to lower crude prices). However there is a growth in EBITDAduring the same period. It is led by volume growth in various businesses in the segment.

Financial Highlights

The Consolidated Revenue of the Company dropped by 29% to reach Rs. 6076 million inFY 2016 as compared to Rs. 8582 million in FY 2015. Earnings before interest taxesdepreciation and amortisation (EBITDA) stands at Rs. 304 million in FY 2016. The drop inrevenue is mainly on account of spin-off of Retail business and reduced volume inAgribusiness.

Agribusiness generated revenue of Rs. 1327 million with a drop of 22% YoY.Performance Polymer segment witnessed an increase of 6% in revenues to Rs. 3763 million.Retail segment recorded consolidated revenue of Rs. 986 million during FY 2016.

After accounting for depreciation and amortisation of Rs. 176 million theCompany’s PBIT stands at Rs. 128 million. After accounting for financial charges ofRs. 382 million and exceptional items of Rs. 753 million PBT stands at Rs. (1007)million and Profit after Tax at Rs. (95) million.

FY 2017 Outlook

We are confidant of a better performance from all our businesses in FY 2017.

Fertiliser industry is expected to do better due to better monsoon. Revival inconstruction industry is expected to generate better results for our consumer productsbusiness and we expect commercial production of Ester Gum to start in second quarter.

Commercial vehicle industry has already started showing positive growth. Global chewinggum industry is also expected to grow at better pace as compared to last few years.

I take this opportunity to thank all our employees customers vendors bankers andshareholders for their continued support.

Best Wishes

Hari S Bhartia

Chairman

Date: 23rd May 2016