I am pleased to share with you all an update on the overall performance of yourcompany during the year 2019-20.
The following are some of the highlights of Standalone Financial Performance in FY20:
Total revenue from operations is at Rs.929.32 Crs. Net Profit was Rs.113.75 Crsand cash profit for the year was Rs.142.18 Crs.
EBITDA is Rs. 190.03 Crs. in FY20.
Earnings per share is Rs. 35.11 in FY20
Book value per equity share has increased from Rs. 177.46 per share to Rs.206.06 per share
Return on Equity in FY20 was at 17.04% and Return on Capital Employed stood at18.81%.
In our endeavour to pursue future organic growth opportunities FY20 has been a veryrewarding year as your company received the environmental clearance for 90-acre Unit IVGreenfield project and also your company's subsidiary Balaji Specialty Chemicals PrivateLimited received consent to commence operations from Maharashtra Pollution Control Broad(MPCB).
We have already spent more than Rs. 70 crores in the Greenfield project as on 31stMarch 2020. Post the commencement of Phase 1 of the Greenfield Project your company willhave the largest installed capacity of Ethyl Amines in India at 22500 metric tonnes perannum.
Your company has identified some of the new products seeing the potential growth fromimport substitutes and shall work towards developing these products in the upcoming phasesof Greenfield project.
To date your company has distributed an amount of Rs. 78.44 Crs. in dividends to allshareholders and paid the requisite dividend taxes. Cumulatively we have availed a totalof Rs.205.85 Crs. of term loans at various stages; at this time all the loans have beenpaid back. We are also happy to state that our cumulative contribution by way of directand indirect taxes since 1988 is Rs. 1381.82 Crs.
Our ROE Sales Profit After Tax and Cash Profit are given in the table since the timeof the IPO:
| || || || ||(Rs. in Crs.) |
|Year ||ROE ||Net Sales ||PAT ||Cash Profit |
|2020 ||17.04% ||919.05 ||113.75 ||142.18 |
|2019 ||20.53% ||949.83 ||118.08 ||133.16 |
|2018 ||24.23% ||861.23 ||113.18 ||131.88 |
|2017 ||22.68% ||667.53 ||85.57 ||105.71 |
|2016 ||20.46% ||634.92 ||61.27 ||86.05 |
|2015 ||15.29% ||604.86 ||36.36 ||61.98 |
|2014 ||16.58% ||610.13 ||33.52 ||52.60 |
|2013 ||18.08% ||511.80 ||31.18 ||47.08 |
|2012 ||24.39% ||449.52 ||35.66 ||48.96 |
|2011 ||23.44% ||346.77 ||26.61 ||41.68 |
|2010 ||23.15% ||255.74 ||20.65 ||33.10 |
|2009 ||21.76% ||245.67 ||15.33 ||26.47 |
|2008 ||23.43% ||211.49 ||13.26 ||20.79 |
|2007 ||23.21% ||169.28 ||10.31 ||16.21 |
|2006 ||27.93% ||125.29 ||9.07 ||12.98 |
|2005 ||18.49% ||87.67 ||4.64 ||8.40 |
|2004 ||31.83% ||70.80 ||6.74 ||11.26 |
|2003 ||26.75% ||45.11 ||4.12 ||7.33 |
|2002 ||31.31% ||36.57 ||3.79 ||6.47 |
|2001 ||9.59% ||26.09 ||1.09 ||2.26 |
|2000 ||12.07% ||22.88 ||1.28 ||2.39 |
|1999 ||7.73% ||20.66 ||0.75 ||1.83 |
|1998 ||5.05% ||16.44 ||0.45 ||1.41 |
|1997 ||2.04% ||10.53 ||0.17 ||0.69 |
|1996 ||8.80% ||8.62 ||0.73 ||1.07 |
From a modest beginning with 3 products in our mix and no exports we now have aproduct range of 30 products and exports to 45 countries. About 80% of our products werepreviously imported into the country. Thus it is a measure of our global competitivenessthat we are able to replace these imported products through our highly efficientmanufacturing processes. We are proudly helping Make in India by being less dependent onimports from European and Asian countries. At the same time we are moving up the valuechain and are globally competitive - all of this is testimony to our ability to deliverhigh quality products at affordable prices through continuous improvements in processtechnologies.
Over the years we have developed expertise to set up chemical plants in a short periodof time. A decade ago it used to take us two years to set up a chemical plant with acapacity of 50 Metric Tons/day. Today we can do the same in six months. The new plant weset up in Balaji Specialty Chemicals was commissioned in a record 12 months. We areextremely proud of the expertise we developed in this area and as and when opportunitiesarise we can scale faster today than a decade or two ago.
On a standalone basis as on date your company is a debt free company. We have doneinvestments of Rs. 50.70 Crs. from internal accruals in current year which will bear fruitover the next 2 years. We have plans for a capital expenditure of Rs. 70.00 Crs. in thenext financial year.
Aliphatic amines and its derivatives are extensively utilised as solvents and feedadditives in pharmaceuticals agrochemicals and specialty chemicals. Rising per capitaincomes increasing urbanization and consumer spending and modernizing agriculturalindustries in developing countries are expected to have a strong growth on aminesconsumption.
Your company's strategy has been to gradually launch new products which arecost-effective and technology based with import substitutes that can enable us to capturemarket share in India. In line with the same we are planning to introduce DimethylCarbonate which is a complete import substitute into our product portfolio in the nextfinancial year.
We have been continuously undertaking expansion to reinforce our production capacityfor future growth. Our constant endeavour is also to broaden our product offerings andmove up the value chain into more complex chemical compounds and products. Your company'sobjective is to drive up the operating margins and increase our business' return profileand strengthen our customer reach and relationships. We will keep on exploringopportunities for innovation and downstream integration for better utilisation ofcapacities.
I would like to take this opportunity to reiterate that the customers continue toremain the top priority of your company. At the same time I appreciate and acknowledgethe valuable and consistent contribution of our employees by their efforts and hard work.I would also like to acknowledge the unstinted cooperation trust and support extended byvarious government and regulatory authorities. I would also like to express sincere thanksto our suppliers bankers financial institutions and all our shareholders.
A. Prathap Reddy