We are pleased to share with you the Annual Report of your Company for the financialyear 2017-18. During the year your Company's performance has been commendable. It hasdelivered strong performance achieved Gross Sales of Rs. 54686 lakhs Profit After Taxof Rs. 2170 lakhs with EBIDTA margins of 9.73% of Net Sales. The Basic Earnings perEquity Share was Rs. 29.98. During the year the Company's bottom line has increased bymore than 66% in compare to previous year. Your Company has sold 29650 metric tons ofgoods during the year.
During the year the Company has completed amalgamation of Group Company MahendraAluminium Company Limited (MALCO) with Arfin India Limited (Arfin). It has strengthenedthe Balance Sheet of the Company on account of amalgamation of business activitiesgreater efficiency in the overall business and integration of business operations as wellas synergy benefits through combined operations of both the entities.
The stark performance by the Company during the financial year was the result of anextensive hard work and focused approach to the business. We continuously strengthened ourmanufacturing processes optimized costs reduced waste minimized environmental hazardsand focused on value creation to our customers.
I am happy to share that during the year the Company has started supplying to powersector through conductor business. The Company has started full-fledged commercialproduction from conductor plant and supplied goods to MP State Electricity Board Companiesduring the year. One of the remarkable success to your Company in recent years is that ithas successfully diversified its businesses. Now we are covering supply to three sectorsviz; Steel Sector Automobile Sector & Power Sector and aim to grow in each of thesectors going forward. We have created a product basket targeting multiple sectorsprotecting ourselves from an excessive dependence on any one segment. We widened ourproduct portfolio to be protected from a fundamental risk of supplying limited productsinto limited sectors.
Ferro Titanium business which we started during March 2017 has performed well during2017-18. The core business portfolio has performed very well with all the key segmentsposting steady growth led by Alloy Cored Wire Aluminium Deox and Aluminium Wire Rodbusinesses. Alloy business has shown growth of 28% in sales and volume in compare toprevious year.
At Arfin we have been evolving with the changing times and conditions of themarket. W e h a v e b e e n strategically moving our focus towards the high margin valueadded products while we continue to explore new markets to stay relevant and improve ourprofit margins.
During the year the Company has increased its export sales through addition of moreoverseas customers in Japan & Middle-East.
I feel privileged to share that the Company has purchased factory land adjacent to theexisting plant which will be used for set up of Aluminium Alloy Wire Rod plant. Productionfrom this plant will be captively consumed for production of conductors which will resultin improved margins from conductor business.
Your company is in process of adding one more plant of Ferro Titanium having capacityof 1200 metric tons per annum to meet increased customer demand. Existing two plants ofCored Wire are running at full capacity. The Company has plan to add one more plant ofCored Wire having capacity of 600 metric tons per annum to meet increased customer demand.
Your Company has purchased one more plot near to existing plant at Chhatral and shedconstruction work is in under progress. The Company plans to add Alloys and AutomobileParts manufacturing facilities to this location. It will create sufficient space atexisting plant for Aluminium Wire Rod Cored Wire and Ferro Titanium plants.
Despite the market fluctuations and challenges we have achieved good results. This hasbeen largely due to ideal cost management focus on efficiency improvement productivityand customer centricity. We have done well both in terms of revenue and earnings. Thetopline and EBIDTA achieved have been the highest ever.
I would like to assure you that all our employees are working extremely hard with greatdedication high energy and strong commitment for your Company. I sincerely thank themall. I would also like to thank all our stakeholders for reposing their faith in us andthanks to our regulators for their constant support and guidance.
I also express my thanks to all fellow Directors for their invaluable contributionthrough their guidance and encouragement which have been momentous for the success of theCompany. Finally I thank each and every shareholder large and small for your supportand trust.
I must end with optimism that your Company continues to do things better and doing sointends to enhance value for all its stakeholders in a sustainable way.
With Regards Yours Sincerely
Mahendra R. Shah