We are pleased to share with you the Annual Report of your Company for the Financialyear 2016-17. During the year your company saw a 19.5% growth in revenues from FY 2016 avery healthy sign of improving Steel sector in India. Your company has also shown ahealthy EBIDTA margin of 7.2% along with 10% growth in the Earnings Per Share. The ProitAfter Tax stood at ` 3.95 Crores on net sales of ` 153.87 Crores against ` 128.71 Croresin FY 2015-16. I am also delighted to state that your company has been performing well inthe exports market with the export turnover increasing by 4 times in FY 2016-17.
Your company sold 8833.914 MT of products in FY 2016-17. Of this 5225.897 MT coredwires were sold and 3608.017 MT aluminum lipping coil were sold. I am honored to statethat the production in FY 2016-17 was the highest your company has ever seen.
It has been eventful year in many ways irst being that the shares of your company werelisted on 27th March 2017 on the SME exchange of BSE. The market has reacted positively toour performance in the past few months. Your company also started setting up FerroAluminum and Iron Powder plant in FY 2016-17 which have now come online. These productionlines will add to the margins of the company as the company already has a market for theseproducts and producing them in-house would increase margins and help in entering newmarkets.
Remaining on track of it's earlier strategy of backward integration to increase marginsin the current product basket your company is now planning to set up manufacturing plantof Aluminum Wire Rod. We currently buy Aluminum wire rod and convert the same into lippingcoil however now your company in a bid to increase its market share in this product andimprove the margins is setting up an aluminum wire rod plant. The work for the same isunderway in full swing.
The current Indian government at the center has helped improved the demand of domesticsteel with its various infrastructure spending policies and anti dumping measures. We areof the view that this government is into infrastructure growth for the long term andtherefore the steel industries recovery is on the right path. Further the interest ratesare also spiraling downwards due to control of inlation and v arious RBI policies.
Overall your company has been performing well even in the face of new entrants to themarket and has been delivering strong results. Further trust in Sarthak's brand namededication of our employees well connected distribution network and our dedication to theclients makes the prospects of the company brighter for the future.
I express my thanks to all fellow Directors for their invaluable contribution throughtheir guidance and encouragement which have been momentous for the success of thecompany. I would also like to thank all our employees for their hard work dedication andstrong commitment towards our company.
I inally thank all of you the stakeholders for your continued patronage and trust inthe management of your company. I assure you that we are committed to building a companywhich we all shall be proud of.
|ANOOP KUMAR BANSAL |
|Managing Director |
|Sarthak Metals Limited |