I write this message with a sense of satisfaction and optimism.
I derive satisfaction from what we achieved in fiscal 2019-20 because our performancewas much better than what we had estimated at the year start.
We launched five products in the domestic markets. We are excited with success of ourproducts namely Chaukhat Plank Elegant and Signature- they received an overwhelmingcustomer response which is quite understandable owing to the significant value they offerover conventional products.
Apollo Chaukhat offer a string of advantages especially in terms of durability - ithas a longer life cycle than traditional wood and aluminium door frames. They are waterand moisture proof fire retardant and maintenance-free. They have outdoor adaptability asthey are resistant to climatic conditions and weathering. They have high screw and nailholding capacity easy sawing and cutting and solvent-based joinery. They also offerbenefits in terms of cost and lower maintenance. In the very first month of launchingdoorframes our capacities were completely booked.
Apollo Signature pipe with special embossing which makes it aesthetically superior fromother products in the market. These pipes are used in Rooftops Furniture Pillars andInterior Designs. Not only the design but the steel itself has its own benefits itrequires zero maintenance after installation. Apollo Signature is getting strong responsefrom coastal market high-end roofing structures. For these narrow sections we operated atnearly 80% asset utilisation.
Apollo Steel Plank' is a new-age steel product in India which will replace theconventional wooden planks. This quality product will transform the perception of planksfrom being unsafe to being secure and sturdy. Alongside this it will also be a way out ofdeforestation as it has the potential to nearly eliminate green cover eradication to makeplanks. We toiled hard last year to educate fabricators. These efforts should pay richdividends going forward.
This was extremely encouraging especially when viewed from the prism of a deceleratingeconomic landscape. We grossed a revenue of Rs 6633 million in 2019-20; reported a netprofit of Rs 423 million and earned an EBITDA of Rs 6124 per tonne. The financialperformance would have been even better had it not been forthe business disruptionconsequent to the Covid-19 pandemic.
Fiscal 2019-20 was seminal for the Company as we became part of the large and respectedAPL Apollo Group. This was significant as we were able to leverage its brand power anddistribution strength in creating product awareness and expanding our market reach withspeed.
While this is an impressive beginning I am particularly excited about the future asthe journey ahead promises to be riveting. My optimism stems from an important reality.
The lifestyle of the average Indian is transforming for the better. As Indians aregetting increasingly exposed to global trends technologies and products their aspirationfor superior quality is growing. We are launching products that complement their evolvinglifestyle. We hope to launch our flagship products
ILG pipes for greenhouse applications in the coming years after undertaking a completestudy to the prevailing market scenario. Also we will work on seeding the market with ourother innovative products in the pipeline which promise to align with the improvinglifestyle of the average Indian. These unique solutions once launched will assist ingrowing the business and strengthening business profitability.
Like all other nations India is fighting against the spread of the Covid-19 pandemic.The result of this fight has led to a near economic paralysis. This has taken asignificant toll on all Indian enterprises small and large and we are no exception tothis trend.
The passage of time has only made experts realise that Covid-19 is here to stay. Wehave to align our lives and lifestyles to this new normal. Governments across the worldincluding India have also accepted this reality and relaxed lockdowns in a phased manner.
Businesses should see demand resurface within the next 6-8 months. Experts also feelthat the resurgence would be significantly strong when the tide turns favourable. Hencewhile the India attractiveness story remains intact the timelines are expected to move astep forward.
Under these challenging circumstances we will be adopting a dual strategy. Forproducts which are already in the marketplace we will extend their awareness andavailability across new regions and markets to garner additional volumes. We will work onenhancing man-machine productivity and optimising their cost structures by enhancingshopfloor efficiencies. For new products we will focus on creating awareness among theright customer segments to garner sufficient business volumes.
The combination of these strategies would help in strengthening business profitabilityand enhance operational cash flow which will be prudently deployed between retiring debtand building organisational capabilities.
As we continue our journey of scaling new peaks I would like to thank the Board forguiding me to execute my responsibilities in the best possible manner. I would like toextend my gratitude to each and every member of our team for their relentless efforts.
I would also like to thank all our stakeholders bankers and the government authoritiesfor the support and assistance provided throughout our journey. I solicit your continuedcooperation.