Let's start with a summary of our performance:
A marginal increase in revenue from operations by 4% to Rs. 99.39crores from Rs. 95.68 crores in the year 2015-16.
Percentage of Earnings before interest taxes depreciation andamortization (EBITDA) excluding Other Income moved to 15 percent from 14 percent in theprevious year.
The percentage of Profit after Tax to Operating Revenue declined to 5.6percent from 6.4 percent in the previous year.
Earnings Per Share (EPS) this year was Rs. 11.18 compared to Rs. 11.74last year.
The past year has been a difficult one for me personally. The foundryindustry lost a visionary PTC lost its founder and I within 7 months of passing away ofmy mother lost my father. Mr. Sateesh Chandra Agarwal left us on October 7 2016 just aswe embarked on the last mile to realize his dream of building the finest cast componentmanufacturing facility in the world. Our tribute to him is to continue on the path that heshowed us and to build this Company to become a leader in its field by adding profitablegrowth and creating value driven by its values of innovation quality and sustainability.
The financial performance of the Company has remained stable while theworld witnessed another turbulent year with unexpected changes in political economic andsocial scenarios across the globe. Domestic growth slowed down due to adverse effects ofdemonetization and credit constraints. Even though India remains the fastest growingeconomy globally the picture isn't as encouraging as was earlier projected. Whilethe external environment posed challenges PTC had its own set of changes to deal with asit came closer to the completion of the Advanced Manufacturing & Technology Centre.
Over the past few years we have continued to transform this companyinto a next-generation technology leader with an aim to become differentiators in themarket. We have strongly believed that our future growth and sustainability depends uponour ability to align ourselves with the paradigm shifts and disruptive developmentsbrought into the manufacturing landscape by phenomena such as Industry 4.0. The capacitiesand capabilities that we have created in the AMTC Plant shall easily differentiate us fromour peers and create a bright future for our Company with ground-breaking innovation thathas always been ingrained in our approach.
With the downturn of the global economy and the Company going into atransition period as we move to a new era of manufacturing the short term outlook for theCompany remains modest. Until the new facility comes into full production the financialperformance shall remain subdued. However the future is energizing and exciting and weare standing at the threshold of great opportunity and extraordinary prospects. This wasamply visible through our exceptional achievements in the past year. Being recognized atthe TIME India Awards for our overall competitiveness pursuit of innovation remarkableexport orientation pioneering adoption of Industry 4.0 and focus on sustainablemanufacturing among 15000 companies was definitely a high point. Receiving the RollsRoyce Total Cost Leadership award for improved casting quality and significant costsavings that we brought to our customer filled me with an immense sense of satisfaction.Enhancing customer profitability is one of our fundamental goals one that we lay greatemphasis on in our strategy.
Looking ahead many developments are anticipated in the economic andbusiness environment some of which are local factors and some triggered by global trends.The Indian economy is poised at the edge of the next phase of growth through thegovernment's push of the Make-In-India' programme and other investment-ledstrategies. The business environment in the country is also expected to undergo a radicaltransformation with the big push with investment in infrastructure in roads portswaterways airways railways power and defence opening up vast areas of growth. Inaddition the newly imposed GST is expected to make operations simpler and seamless. PTCis positioned to capture the benefits of this upswing and emerge as a beacon ofbest-in-class technologies and manufacturing practices in the metal cast componentindustry. Going forward PTC shall renew focus on the Indian market as the country entersinto a favourable new phase of growth on the back of increased government spending andstrong consumption growth.
The rapidly changing external and internal environment prompted us toembark on a strategic review process. This process entailed primarily reviewing theexisting strategy of our organization to ascertain whether it would help us deliver futureperformance and growth on a long-term sustainable basis and what changes were required onboth strategic and operating platforms to bring in outstanding growth and profitability inthe future. The deliberations made during this process have led to the emergence of PTC4.0 and the formulation of a new mission and vision statement for the Company onethat will define our identity as an organization and sum up what we stand for and what wewant to achieve in the coming times.
In addition we identified a number of key priorities and focus areaswhich would form the building blocks of our Company's new personality. Among othershuman resource upgradation and skilling have been identified as important areas oftransformation and we have already begun work on this. This brings me to that happy taskof introducing you to our new Chief Operating Officer Mr. Anthony M. Rowett who joinedus in March 2017 after holding a position as the Managing Director of the Europeandivision of one of the world's leading engineering companies. Anthony brings with himover 25 years of rich and varied experience in the cast component industry with a strongbackground in Metallurgy. His association with PTC goes back to more than 15 years andapart from being the most able person to lead operations of our state-of-the-artmanufacturing facility he is also a dear friend and a fine human being.
It makes me proud to share that we are the first and only company inthe world to have brought all the latest most advanced and best-in-class technologies andequipment under a single roof to create unique unprecedented synergies and opportunitiesfor the manufacture of metal parts. Never before has a Titanium casting facility existedalong with Stainless Steel manufacturing nor a HIP (Hot Iso-static Pressurisation)capability been found in a foundry before and neither has anyone thought of combiningpowder-metallurgy with castings nor has anyone clubbed 3D printing with 5-axis CNCmachines till now. This aggregation will initiate unforeseen possibilities ofcross-pollination between these incredible technologies processes and equipment and onecan only imagine what the future of manufacturing shall hold for metal components. I amconfident that with the evolution and development of our Company the future has neverbeen more exciting. Our focus on technology and disruption shall allow us to move forwardtowards a new era where we create and execute strategies to innovate build and lead anew tomorrow. With our expertise industry knowledge and strategic insight delivered by anexceptionally skilled and committed workforce we shall be well positioned to serve ourcustomers in this unprecedented shift in the world of manufacturing.
We shall continue to enhance stakeholder value for our investors bybuilding a strong foundation for solid profitable growth in the future. In addition wetake our responsibility towards building social and environmental value for our communityand partners very seriously. Our distinctive leadership style is to be a ValueLeader' and create exceptional value in everything we do. Hence we haveplaced equal importance on building a facility that works on the principles of Zero Defect- Zero Effect and incorporates facilities such as a 1MW rooftop solar plant waste heatrecovery systems passive cooling rainwater harvesting effluent and water treatmentplants and fume extraction and exhaust systems. Our aim is to contribute back to thecommunity and the environment and bring in a new generation of sustainable manufacturingin the metal cast industry.
I am deeply grateful to each of our customers suppliers bankersnational and state government agencies shareholders and employees for the faith andconfidence that they have vested in this Company. It is my belief that with our undyingspirit of innovation and the passionate commitment of our workforce we shall continue toplay a formative and leading role in shaping the future and emerge as winners in ourfield.
|Sachin Agarwal |
|Chairman and Managing Director |