2021- 22 may forever be remembered as amongst the most uncertain fiscalbecause of the pandemic and later the geopolitical conflict. Nonetheless as we write thisletter we wish to find reasons to be hopeful - our Company wiped out the remainingcarried forward loss of ' 0.29 cr which at peak was ' 56 cr. Amal Speciality Chemicals Ltd(ASCL) a 100% subsidiary will soon commission its new manufacturing facility for 300 mtper day of H2SO4 equivalent products in Ankleshwar.
Financial performance in 2021-22 declined because of low demandof finished products (particularly H2SO4 and SO3) andhigh input prices (particularly of Sulphur) for most of 2021-22 - sales rose by 43% to '45 cr; EBIDTA decreased from 41% to 14% PBT decreased by 69% to ' 3 cr and RoCE from 35%to 11%. The Directors did not recommend dividend consequent to a stipulation in therevival scheme; it is also prudent to wait till the new investment of ' 93 cr in ASCLdelivers a positive impact.
During 2021-22 we adjusted the product portfolio which helped inpreventing further fall in contribution margin by 1.2%. During the fiscal we alsocompleted further debottlenecking of the capacity of SO3 Oleum 25% and H2SO4which will help increase contribution margin. Furthermore we added 17 team members whowill be required to take up responsibilities in sync with the forthcoming newmanufacturing facility of Amal Speciality Chemicals Ltd.
Our Company along with ASCL is expected to achieve consolidatedsales of ~ ' 135 cr at full capacity utilisation. The new manufacturing facility isexpected to be commissioned during the second quarter of 2022- 23. Our first task will beto streamline the parameters and achieve the projections. Thereafter we will focus on afew proposals on hand to grow our Company beyond. We will execute proposals based onmarket attractiveness and ability to compete.
So far 2022-23 has seen the highest price of Sulphur the keyraw material in the last 12 years. On the other hand it has so far been difficult topass on the entire increase. It is therefore possible that 2022-23 may see a pressure onprices of finished products such as H2SO4 Oleum SO3 andSO2. In our view such a situation is unsustainable and will change for thebetter. Meanwhile team Amal is taking several actions at the workplace and marketplace toenhance performance.
Our Company contributed ' 26 lakhs towards fulfilling its obligationto society - it was used for improving infrastructure of five schools and providingrelief to COVID-19 patients in four hospitals. The mandate is to take up projects nomatter how small in step with national priorities. The initiatives were implemented byAtul Foundation - you may like to see the link at the end of the letter. The conceptserve and grow' is robust; it makes our Company sustainable.
We are grateful to our customers for giving us an opportunity toserve and grow our Company - their expectations help us improve our standards. Werecognise and appreciate every member of team Amal who is persevering to improveperformance. We value the engagement analysis value addition and guidance of the Non-executiveDirectors. In order to maintain continuity we have inducted Mr Jyotin Mehta as anIndependent Director.
We again reiterate our five everlasting mandates: one - driveefficiency in manufacturing and other processes two - become financially resilient three- boost people productivity and remain lean in fixed costs four - pervade R&D andinformation technology in every function and five - work with customers on ideas with highpotential. We believe that the above mandates will help our Company grow better and fasteras it turns yet another page in its never-ending journey.