I am delighted to present to you the Annual Report 2020-21 of your Company AdvancedEnzymes.
We strongly believe in the adage Tough times never last but tough peopledo. These are tough times and we sincerely hope that all of you and your familiesare in good health. At the same time this is a battle that we have to fight together andremain united through it.
At Advanced we are regularly taking stock of the current COVID-19 scenario assafeguarding employee and customer health and interests is always our top most priority.
The COVID-19 pandemic which was a defining event in 2020 continued to have a sporadicimpact in different parts of the world in 2021 as well. The health social and economicconsequences were felt by people world over. Health and frontline workers continued towork tenaciously to provide all help possible to those in need.
The pandemics impact was felt by businesses all over the globe owing topandemic-related restrictions. However despite the unfavourable environment I am proudto inform you that the Company exhibited resilient performance for the year ended March31 2021. Your Company crossed the Rs. 5000 million mark in FY21 we have reachedRs. 5018 million this year. This would not have been possible without the vision of theBoard and management and the passion and dedication of our people.
We are cognizant of the COVID-19 pandemic which is continuing to impact lives andbusinesses alike. On behalf of your Company I would like to wish all those impacted aspeedy recovery. I request you all to continue following all the necessary safety andsocial distancing measures.
During the year our consolidated operating revenue grew by 13% to Rs. 5018 millionfrom Rs. 4440 million in FY20. Our EBITDA grew by 14% to Rs. 2315 million continuing toremain above the Rs. 2000-million mark while our EBITDA margin remained at 46%. Our PATtoo grew by 14% to Rs. 1515 million compared to Rs. 1330 million in FY20.
Human Nutrition continued to be our primary revenue driver contributing Rs. 3786million in FY21 up by 18%. Our Animal Nutrition and Bio-processing segments degrew by 11%and 1% respectively. A large chunk of our animal feed business comes from domesticmarkets. Due to the pandemic and lockdown restrictions as imposed from time to time thelogistics costs rose significantly the deliveries also took longer and lower consumptionof animal feed product range this impacted our Animal Nutrition business. Our Bio-processing business comprises of the food and the non-food businesses. With regard to thefood business our focus this year was primarily on the European market. Due to lowerconsumption we witnessed slow growth. Our non-food business consists of the industrialprocesses like textile processing & effluent treatment paper & pulp leather andlaundry solutions etc. As people focused more on essentials during the year thesebusinesses did not garner much revenue.
Despite the challenges posed by the pandemic our resilient performance has instilledin us renewed confidence to be able to face challenges in the future and emerge stronger.
Acquisition of Scitech Specialities
In January 2021 we completed the acquisition of SciTech Specialities Private Limited(SSPL) India a contract manufacturing company with niche technology specializing ineffervescent granules and tablets. The acquisition has strengthened our manufacturingcapabilities by adding two manufacturing facilities for nutraceuticals andpharmaceuticals taking the count to nine. The combined synergies of the two companieswill allow your Company to expand its B2C business and will also empower us with importantapplications in our existing verticals and provide new delivery systems for existingproducts. This venture will strengthen our overall capabilities of capacity expansion andR&D.
A team that is committed towards a healthier world
The health and safety of our people was is and will continue to be our topmostpriority. We continued to follow all the necessary safety and social distancing measuresacross our facilities to curb the spread of the pandemic. Our resilient performance forFY21 would not have been possible without the determination and passion of our people they ensured seamless operations thus maintaining a continuous supply of ourenzymes and probiotic products which are essential primarily to the pharma industry. Iwould like to extend my heartfelt gratitude to you for your unwavering commitment.
Ready for the future
The world is becoming increasingly aware of the harmful effects of chemicals on health.Natural alternatives to boost the immune system are gaining increased traction which putsus in good stead to leverage the rising opportunities in the areas of bio-catalysis andprobiotics.
Your Company will continue enhancing its research and innovation capabilities toprovide side-effect free healthcare to consumer. We aspire to replace traditionalthermal-chemical-mechanical processes with enzyme-passed processes in the industry and wewill leave no stone unturned until we get there.
As I conclude I would like to thank the Board for making prudent decisions for thecontinued growth of the Company and long-term value creation for all stakeholders. I amalso grateful to the stakeholders for their faith and trust in us. We will continue toprovide high-quality cost-effective products to meet the dynamic demands of the industry.
Stay safe and healthy!
V. L. Rathi