It gives me immense pleasure to apprise you about our performance in the year 2016-17and to give a glance of our plans for near future.
At the outset I would like to inform that our Company has added another feather inour cap by winning the INDIASTAR-2017 Award for our "Rotolock" Container incollaboration with MTR Foods Private Limited. Achievement of this award for second timeshows our innovative spirit and strengthens our leadership position in Indian PackagingIndustry - INDIASTAR Award is the National Award for Excellence in Packaging which is heldin a great esteem in India. Another two awards that our Company bagged in 2016-17 are theAsian Paints PACON- PACON-2016 for Winnovation and 3rd Rank in plastic Category inPACON-2016-17 competition.
Our Company in financial year 2016-17 achieved a growth rate of 12% in terms ofvolume. Though demonetisation had slackened growth of Indian economy our Company managedto grow at 12% thanks to the exceptional performance in 1st and 2nd quarters of thefinancial year 2016-17.
EBITDA is up by 14% and Net profit after tax (standalone) is up by 12% and Earnings pershare (EPS) has gone up to Rs. 9.75 from Rs. 8.70 in the financial year 2015-16. Companyhad declared an interim dividend of 40% (i.e Rs. 2 per Equity share) and recommended afinal dividend @ 32% (i.eRs. 1.60 per equity share)i.e a total dividend @ 72% (Rs. 3.60per share) for the financial year 2016-17.
The new plant at RAK (UAE) started operations in November 2016 currently running at25% to 30% capacity utilization which we hope will go up to 50% to 55% (Break EvenPoint)by October-November 2017.Many enquiries are being received from reputed lube paintand food product manufactures in UAE and the Middle East.
The major development that happened this year is IML Containers order for "DairyMilk Lickables" by Mondelez. Our Company set up the manufacturing facilities for thisprestigious product within four months and received several compliments from the worldrenowned leader in Chocolate Industry Mondelez for excellent execution quality andconsistent supplies. Going forward our Company can expect many more such opportunities infood and FMCG segments.
With an endeavor to expand and grow we are expanding our existing capacity at Hyderabadmain plant by investing Rs. 25 crore for the production of Food and FMCG Thin wallcontainers. The 1st phase of the project will go into production by December 2017 and willbe completed by June 2018. This project will enhance our Thin Wall F&F Productscapacity from 1400TPAto 3000 TPA.
Desire is the key to motivation but it is determination and commitment to anunrelenting pursuit and commitment to excellence enable you to attain the success youseek.
I am confident that the TEAM Mold-Tek is committed to deliver excellence leap aheadand make its mark in the field of packaging in India with its inhouse manufacturing ofIML Lables and robotics offering us a great edge over competition.
J. Lakshmana Kao CMD