I hope that alls well at your end.
After a shocking year we are coming back to terms with what the new normal has become.The year 2020 posed many challenges. The Covid-19 pandemic resulted in nationwidelockdowns across major economies. Trade and travel were disrupted and the world faced anunprecedented crisis. I am happy to report that despite these adversities the Companymaintained its consistent performance throughout the year and stayed resilient. Lives andlivelihood were impacted around the globe as the novel Coronavirus blew into a pandemic.As per the International Monetary Funds data in January 2021 the global economicoutput witnessed an estimated fall by 3.5% in CY 2020. Governments and central banksacross the globe deployed various policy tools to support their economies. At the momentthe world is still dealing with the Covid-19 pandemic. Vaccine rollouts on the otherhand have increased business confidence increasing morale as the economy progressivelyrecovers. With the removal of trade barriers and the resumption of normal businessoperations the industry is gradually returning to pre-pandemic levels.
The Indian economy endured through a period of uncertainty in the first quarter of thefinancial year however as the nation reopened with the second half business returned.With the restart of activity across sectors and the general improvement in publicsentiment the economy geared up for recovery. The Reserve Bank of India (RBI) and theCentre stepped in again providing a Rs. 29.87 trillion stimulus package. These factorscontributed to 1.6% GDP growth in Q4 FY 2020-21 and provided solid growth momentum for allsectors and macro indicators.
The global pharmaceutical industry was impacted much like the rest but the industryadapted and acted with resilience in the face of the pandemic. Despite restrictions onlocomotion the pharma industry in the developed as well as emerging poised to economiessaw a significant grow in the years ahead. The focus has now shifted towards consolidationand R&D for developing new cost-effective molecules. India among the Asia-Pacificregion is expected to drive potential growth in the global pharmaceutical industry. Thisexpectation has been drawn from Indias accelerating innovation and R&Dcapabilities and a growing pharmaceutical market. The Company focussed on three specificareas: Taking care of our employees setting higher standards for research and innovationand expanding capabilities to drive sustainable growth.
We swiftly acted in the face of the pandemic and implemented Covid-19 safety protocolsto ensure the safety of our employees. We transitioned to work from home while alsoconducting regular Covid-19 awareness workshops virtually to help our employees. Weprovided transportation facilities to our factory staff and run the vaccination drive forthe employees. To prevent our people we distributed face masks and conducted regularsanitation at our workplace with social distancing measures being followed thoroughly.This helped our productivity levels and we ended the year with significant growth inrevenue and profitability. During the year FY 2020-21 ADL recorded a consolidated totalrevenue of Rs. 21593 million with a growth of 19.5% as compared to FY 2019-20. TheCompany continued to leverage its global clientele and set higher standard of productquality which helped us grow our numbers. Further our cost optimisation strategiesbackward integration of captive consumption and development of cost-effective moleculesled to an increase in profit after tax (PAT) by 98% to Rs. 2804 million in FY 2020-21.Also the margins expanded by 520 basis points to 13.0%.
We have put a lot of focus on R&D during the year. We laid out various actionpoints that helped us enhance our existing molecules while simultaneously formulatingmore updated and recent products. The Company recently expanded into oncology steroidsand hormones. Our phased capex plan of Rs. 6000 million in the next five years is aimedat expanding our capacities which shall help us cater to the growing demand in the globalpharmaceutical industry. All our existing capacities across segments will be refurbishedand new products will be added to the franchise to seize the opportunity with fundscoming through internal accruals with minimal debt. Sustainable and inclusive developmentis ingrained in our day-to-day operations. We believe in a judicious use of resources andmore recyclable waste discharge across the value chain. Our ongoing efforts to eliminateorganic effluent discharge and produce additional by-products from waste streams will helpus deliver without an environmental fallout. ADL is also engaged in various projects thatinspire community betterment and socio-economic development. Our CSR arm Aarti Foundationin association with other NGOs worked towards supporting our communities during thepandemic-infested times by providing groceries meals healthcare facilities andtransportation. We also took up initiatives for education women empowerment andhealthcare provisioning among others.
Over the years the Company has been able to carve a niche for itself and is lookingforward to expanding the volumes. With the Governments initiative to encourageprivate health insurance schemes consumer spending on medicines would likely grow toowhich shall prove helpful for the generic sector in the domestic pharma market. TheCompany aims at becoming the first choice of this expanding market through quality andquantity deliverables.
We aim at creating a Company for all. A brand synonymous with growth inclusivity andchemical innovation. In this journey our biggest asset remains the relationships we havefostered over the years.
I would like to express my gratitude towards the shareholders and employees whocontinued to believe in the management even during these tough times. Further I wouldlike to thank the suppliers customers bankers and all the stakeholders for forging astrong relationship with us and believing in our vision.
prakash m. patil
Chairman Managing Director & CEO