We continue to leverage our more than three decades of experience and expertise instrengthening our leadership position in key markets with relentless focus on creatingvalue for all the stakeholders. We continue to move our organization and industry towardsa more environmentally and socially conscious future. Our focus has always been on findingnew opportunities to grow and exceed the expectation of our customers across the globe. Wehave leveraged our expertise and our proficient research and analysis capabilities to makesignificant strides to build a truly formidable business.
Indian economy witnessed a declining trends owing to various reasons including mutedgrowth in consumer demand and slowdown in the manufacturing and construction industries.Global economy also registered muted growth due to rising trade policy tensions weakerinternational trade and investments and structural changes of industries in some majoreconomies.
Our industry has been significantly impacted by the overall de-growth of key end-useindustries such as automotive aviation and construction. However the infrastructureindustry has been a key growth drive as the industry has been growing on the back offavourable polices implemented by the government to boost infrastructure of the country.The growth of investment in infrastructure projects would create higher demand for thedyes and pigments industry.
Further restrictions imposed in China in terms of industrial activities due toenvironmental concerns has opened a path for the Indian chemical industry to take overChina's market share and improve its overall global positioning. This would give multipleopportunities to your company to further grow and improve its market standing.
The industry witnessed headwinds due the outbreak of COVID-19 pandemic which led totemporary shutdown of businesses and disrupted supply chains. Although the industry isanticipated to grow at a considerable rate in the coming years despite the current phaseof difficulties. There are several ongoing expansions in the paint and coatings sector bymajor producers in the country which will contribute to the growth significantly.
During the year under review we recorded a revenue of Rs. 419 crore compared to Rs.468 crore in the previous year. Our EBITDA was Rs. 103 crore in FY 2019-20 as compared toRs. 130 crore in FY 2018-19. Our PAT stood at of Rs. 66 crore as compared to Rs. 72 crorein the previous year registering a de-growth of 8 % YoY. There was lower price realizationin chemical business due to compression in pricing and lower generation of solar powerunits (due to lower irradiation) lead to lower revenue generation in solar business.
Our revenue from exports accounted for 25% share in total revenue mix amounting to Rs.104 crore in FY 2019-20. We cater to customers in various downstream industries in morethan 10 countries across the globe. Our sustained market share in key markets has been
on the back of our ability to provide superior quality and innovative products in linewith our customers' needs and expectations.
As we enjoy the status of debt-free company it enables us to strengthen our margin andliquidity position.
Despite a year of challenges your company has delivered a decent financial performanceand is optimistic about the future given the plethora of opportunities in the domestic aswell as global market that lie ahead of us.
The Indian dyestuff market is expanding considerably owing to the increasing exportvolume to various major countries. The domestic market is also expected to growsignificantly as international players would need alternate suppliers given therestrictions in China. Many international players are already turning to India.
In order to make the best of these opportunities we will be focusing expanding ourreach and offerings along with strengthening our relationship with our customers. We havemade
a brownfield capex of Rs. 100 crores spread over 2 years which is divided into 3phases. In the first phase our focus will be on backward integration key inputsincluding Sulphuric Acid & Derivatives. During this phase we have startedmanufacturing from mid month of February 300 TPD of Sulphuric Acid & Derivatives atour Tarapur plant.
While in the second phase the focus will be on the expansion of the basket of dyeintermediates. Under this phase 4500 MTPA capacity of J-Acid and Tobias will bemanufactured at the Tarapur plant starting by the end of November 2020. Lastly in thethird phase will focus on the manufacturing of pigments intermediates at a capacity of4500 MTPA which is expected to be on stream by FY 22. We have also purchased 3.4 acresof land for the expansion at GIDC Vapi.
We also continue to make significant investment towards research and development ofnew unique and eco-friendly products. Our team of experienced and qualified scientistshave been working on developing more efficient products and processes that will enable usto reduce our cost without compromising on the quality.
With a strong market standing and healthy relationship with our clientele we remainpoised to deliver encouraging performance and create value for all our stakeholders. Weare optimistic about the growth and market acceptance of the new products in the pipeline.Your Company has no long-term debt on its books and has adequate working capital sanctionsto address growing business needs. We remain optimistic about our future given themultiple opportunities that have been presented to us with changing global and domesticcircumstances which will cater to our aim of growth and expansion.
The recent outbreak of Covid-19 has not only severely impacted millions of lives inIndia and across the world but also brought the economy to a grinding halt. In the wakeof this pandemic we stood united with the nation to undertake initiatives formulated tocater to underserved citizens. Apart from distributing food to the needy we also gavedonation to the PM CARES Fund District Disaster Mitigation Fund (Boisar Maharashtra) andChief Minister's Relief Fund (Gujarat).
I would like to express my appreciation to the Board of Directors for their constantsupport and guidance in taking the Company ahead. I would also like to thank ouremployees financial institutions vendors customers and shareholders for their vitalcontribution in the success of our business.
|Suresh Bhageria |