Incredible milestones are never achieved by an individual but by a team
It gives me great pleasure to present our Annual Report for 2021-22. Our success overthe past six decades is a testimony to the quality of our people products strongrelationships with our stakeholders and the strength of our brand at a global level.Besides quality and innovation strong leadership have further allowed us to build aresilient business model and emerge as a globally renowned brand with a strong marketshare.
How the year unfolded?
At the start of the year we faced great uncertainty across our markets due to thesecond wave of COVID. The well-being of our employees continued to remain a priority whileensuring
business continuity. Despite the enormous challenges of operating through COVID-19 ourteam worked tirelessly to ensure that we meet the needs of our customers. As the yearunfolded further the geopolitical situation created unprecedented supply chain relateddisruptions impacting both pricing as well as raw materials availability. The logisticsand freight costs continued to remain at elevated levels. But on a positive side our enduser markets were buoyant despite inflationary trends. As in the past we gained marketshare as the off-highway tire industry witnessed higher uptake on an account of healthydemand across mining and agricultural markets.
Our performance in 2021-22 demonstrates the outcome of our long-term strategy tocapitalise on our increasing scale while at the same time maintaining the businessagility. We reported strong revenues of Rs 8697 Crores and volumes of 288795 MTPA bothgrowing annually by 46% and 27% respectively. Our EBITDA increased by 23% and stood at Rs2406 Crores with strong margins of 27%. The profit after tax increased by 22% and stoodat Rs 1411 Crores.
Exports accounts for 83% of our sales out of which 54% is Europe 17% is US and rest ofthe world is 12%. The remaining 17% is domestic sales. We continued to remain thepreferred choice of our customers and we further aim at maintaining leadership in productquality delivery reliability and technical expertise.
Progress on OUR Capex
During the year we made significant progress with our capex plan. We commissioned thegreenfield plant at Waluj (Waluj 2) during the year. Further We also commissioned thebrownfield tire plant at Bhuj (almost 6 months ahead of schedule) and are expecting acomplete ramp up in production by second half of 2022-23. Post commissioning of thesecapacities and at full ramp up we will achieve a total capacity profile of 360000 MTPA.For FY23 we are targeting sales volume of 320000 MT to 330000 MT
People and Community
At BKT we foster a diverse and inclusive work environment across our areas ofoperations. We have always focused on diversity and inclusion and providing equal growthopportunities to our team. The result is visible in the success we have achieved over theyears. We always value employee feedback and always strive to create a workplace whereeveryone feels welcome supported and valued.
Running our business responsibly is vital to our long-term success as the decisions wemake may have consequences for the economy society and the environment. Our approach tocorporate social responsibility and our initiatives in promoting education health andrural development adds
value to a larger section of the society. Besides our all-round efforts aroundEnvironmental Social and Governance (ESG) factors and dedicated targets further drivesthe business sustainability.
Strategic Way Ahead
In the first half of the seventh decade we are now embarking on a mission to doubleour global market share from ~5.5% to 10%. We shall continue to expand our capacities toachieve this mission.
This would be aptly supported by our strategic endeavours towards enhancing marketreach improving penetration in the US markets expanding product portfolio strengtheningdistribution channel in the Indian markets and increasing utilisation levels. Besides wewill continue to build our brand visibility by associating with several sports eventsacross the globe.
I wish to take this opportunity to thank my colleagues on the Board for theirinvaluable guidance and support. My sincere appreciation also goes out to our managementand execution team for their untiring efforts and commitment. Finally I wish to extend myappreciation to all our stakeholders who have been a key support to our growth over theyears. Notwithstanding
the near-term uncertainties it is truly an outstanding time to be part of thisindustry and we are excited about the opportunities and the next leg of our growth. Wehave delivered 60 years of excellence and we consider this is only the beginning.
|Best Wishes |
|Chairman & Managing Director |
|Arvind Poddar |