It is my privilege to present the 42nd Annual Report of your company for the year endedDecember 31 2015.
India is still a positive spot in the midst of a weak global economy. Despite ofpessimistic global scenario and decline in exports the Indian economy in 2015 grew byabout 7.6 % driven by improved macro-economic indicators. The public investment and urbanconsumption were the major drivers of growth in FY 2015.
The growth of Indian Manufacturing sector was a concern area for later half of 2015which was lower by almost 10 % as compared to first half of 2015 and has been taking tollon overall economic growth. The share of Indian manufacturing industry to country's GDP isquite low compared to other emerging economies like South Korea Thailand Malaysia andIndonesia. Economic Growth of India may dip marginally at 7.5 percent in FY 2016 due toslowdown in public investment stressed corporate balance sheets and declining exports.India's near-term growth prospects remain favorable especially given thefaster-than-expected decline in inflation. India's economic growth may benefit from recentpolicy reforms a consequent pickup in investment and lower commodity prices. The abilityto pass significant reforms depends on the willingness of India's political parties toreach agreement on big-ticket items such as GST. Various policy initiatives taken by theCentral and State Governments are also expected to provide a boost to the textileindustry. The Government of India had notified the amended Textile Upgradation Fund Scheme(TUFS) which may give a boost to employment generation and exports in the textile sector.Recent developments in the global market provide for encouraging signals towards increasedglobal demand for textile products. These developments augur well and present the Companywith growth opportunities in future.
For Stovec F.Y. 2015 has been a year of Success Growth and Consistency. Inspite ofmediocre performance of manufacturing sector in general your Company has outshined allits previous records for revenue by recording standalone revenue from operations of Rs.1567.02 Million (Previous year Rs. 949.09 Million) a tremendous growth of about 65 % incomparison to prior year. The increase in revenue is contributed by growth in sales of allproduct lines and more particularly Rotary Screen Printing Machine and its Spare PartsNickel Perforated Rotary Screens and Sugar Screens. The Standalone Profit before Tax stoodat Rs. 310.66 Million (Previous year Rs. 165.15 Million) an excellent growth of about 88% in comparison to prior year. The consolidated revenue from operations stood at Rs.1621.98 Million (Previous year Rs. 1023.44 Million) an impressive increase of about 58 %in the consolidated revenue. The consolidated Profit before Tax for the financial year2015 stood at Rs. 331.79 Million (Previous year Rs. 172.52 Million) Our growth strategyand highly engaged work-force allowed us to maintain and reinforce our strong positionacross our markets. We made good progress with our cost leadership initiativesstreamlining our production infrastructure and extending our reach and customer servicewhile reducing cost. In short the progress we made in 2015 combined with portfolio ofquality products positions us well for future growth.
Finally on behalf of the Board I would like to thank all employees for theirtremendous efforts and passion. It is their commitment and focus that enables oursubstantial progress. I would also like to thank the stakeholders and all our partners fortheir support co-operation and understanding.
With Warm Regards
K. M. Thanawalla