For S.P. Apparels Limited this report embodies our commitment to transparency towardsour clients suppliers employees and the shareholders; and it gives us an opportunity tothank everyone involved in this exciting journey.
With our first Annual Report post listing in the exchanges we document for ourstakeholders that we are an organisation that evolves grows and adapts with the times inaddition to being well-equipped to help our customers meet the challenges of a rapidlychanging global environment.
It is my pleasure to share with you our performance for FY 2016-17. Our management andemployees delivered strong results during the year while navigating through challengingbusiness environments. The Company's performance during the year and its strong positionfor future growth are deeply rooted in our proven strategy to focus on creating long-termshareholder value.
It is my pleasure to share that the Company has declared equity dividend of 5% for thecurrent fiscal year.
Our Performance on Standalone Basis
In spite of the challenges faced due to volatile currency demonetisation andvolatility in global markets the Company has recorded its total revenue as Rs 6436.10 mnfor the FY 2016-17 as against Rs 5417.43 mn in the FY 2015-16 which is a growth of18.80%. EBITDA grew by 33.69% to Rs 1257.77 mn as against Rs 940.80 mn in the FY 2015-16.PBIT of the Company for the FY 2016-17 stood at Rs 1033.92 mn as against Rs 733.65 mn inthe FY 2015-16 growing by 40.93%. The Company has registered PAT of Rs 565.10 mn for theFY 2016-17 as against Rs 204.88 mn (after exceptional item) in the FY 2015-16 which is agrowth of 175.82%. EPS (Basic) for the FY 2016-17 stood at Rs 24.32 as against Rs 8.86 inthe FY 2015-16 an increase of 174.44%
Committed to Growth and Value Creation
We have built a robust apparel manufacturing base one which we are continuing tostrengthen with spinning-garment investments in FY 2016-17. Our growing manufacturingplatform together with strong product understanding helps SPAL to continue to createvalue as we execute on our growth drivers. These drivers include the persistent growth inexport markets by adding new customers building a leadership position in all childrenwearapparel categories and enhancing our retail presence for the Crocodile Brand.
We are expanding our yarn capacity to source all yarn requirements internally and haveestablished a knitting facility to reduce third-party dependence for manufacturing. Duringthe year we installed 19 knitting machines and 300 sewing machines which are up andrunning.
We are continuing to invest towards vertical manufacturing capacity expansion and costreduction projects to support growth and enhance our competitive positioning.
We have a very positive outlook in terms of client additions as we had started businessrelationship with three new customers during the current year. Of these two clients arebased in the US while the other is a non-UK client based out of Europe. We expect toreceive large orders from these clients in the coming quarters.
In terms of capacity expansion on the garmenting side we are in the process ofeliminating bottleneck created by limited blowroom capacity and knitting machines. Overthe next fiscal we have an investment plan towards the modernisation and increase ofspindles knitting machines and addition of sewing machines. On the retail front theCompany plans to grow through adding COCO stores FOFO stores distributors and furtherincrease its presence in the large format stores.
Our subsidiary company in UK will add more customers and is expected to grow at afaster pace.
On behalf of the Board I wish to thank all the members of the senior management teamalong with every employee worldwide for their contribution to our success fordriving our growth and helping us to build a sustainable future together.
Mr. P. Sundararajan
Chairman and Managing Director