Our performance in FY16-17 has not been encouraging as we had a subdued topline due todelayed dispatches foreign exchange fluctuations and delay in implementing ourmanufacturing automation. Our margins were impacted primarily due to increase in employeecosts.
Despite these unanticipated events impacting our performance our initiatives to moveto the next level is intact as most of our operational initiatives to enhance our processcompetence and efforts to expand our markets are progressing in line with our strategicgoals.
During the year under review your Company has recorded its revenue from operations asRs. 54590.13 lakhs which is at par with Rs. 54581.67 in the previous year. Profit beforetaxation is Rs. 14270.11 lakhs. against last year's figure of Rs. 17105.50. Net profitafter tax is Rs. 9254.08 lakhs. The Basic Earnings per Equity Share (of face value ofRe.1/-) is Rs. 19.48 compared to Rs. 23.60 in the previous year.
Review of operations
Our associate firm Kitex USA LLC has posted a initial turnover of around Rs. 80 lakhs($ 128818.41) and gross profit of around Rs. 5.5 Lakhs ($ 8815.41) for the year endedMarch 31 2017. Your Company has consigned its product worth Rs. 20.01 Crores to itsassociate during the year. Going forward to increase our brand equity in US markets weopened a world class design studio in New Jersey in the month of April 2017. Major USClients are investing considerable amounts on designing. The newly inaugurated Studiogives designing services based on their unique requirements purely as a value addition.This value addition enables your company's clients in cost saving and thereby better ourbusiness relations with them. Further we have started direct business with WALMART &TARGET.
In the previous annual report I had mentioned about our initiatives to upgrade andincrease our manufacturing capacity. While our goal was to commission this upgradedfacility in FY16-17 we were not able to achieve this milestone due to more time requiredfor customization of the automation process. This was unforeseen however our automationpartner along with our technical team has successfully completed major part of the trialsand its almost ready for commissioning. We have increased our skilled work force duringthe year under review and the new financial year also comes with this people advantage.
During the year we carried out our sustainability initiatives related to energy andenvironment with more vigour. We continue with our corporate social responsibilityinitiatives and during the year have taken up many new initiatives touching upon foodsecurity education health drinking water and livelihood.
I take this opportunity to thank our employees customers bankers investors suppliersand Government for reposing their trust in the management. We assure you our commitmentfor continued growth.
Sabu M. Jacob
Chairman & Managing Director