FY 2017-18 marked a reversal in the performance of the Indian economy.Although the GDP growth declining to 6.7% in FY 2017-18 after clocking 7.1% in FY2016-17 there was a distinct improvement in growth in the second half of the year. Q3 FY_2017-18 was characterised by signs of acceleration in the growth of corporate sales adepleting finished goods inventories and a revival in corporate investments in fixedassets and an overall pick-up in the CAPEX cycle. In fact it is a matter of pride thatIndia has now claimed the position of the world's sixth largest economy. While theIMF projects that India will grow at 7.4% in FY 2019 and 7.8% in FY 2020 the World Bankexpects growth to reach 7.3% in FY 2019 and accelerate to 7.5% in FY 2020. All thesefactors when seen against the backdrop of two consecutive good monsoons indicate gooddemand for your Company's products within the country coming years.
The global economy also delivered a strong growth of 3.7% for FY_2017on the back of robust growth in emerging markets and developing economies alongside steadygrowth in advanced economies. This bodes well for your Company as it implies robusteconomic activity in our export markets.
In this optimistic environment your Company has put up a goodperformance in FY 2017-18. The gross turnover increased 18.29% from ` 434.37 Crores in FY2016-17 to ` 513.84 Crores in FY 2017-18 due to higher offtake from both domestic OEMs andoverseas customers. The gears business grew by 26.78% in FY_ 2017-18 from a figure of `359.22 Crores in FY 2016-17. The Company has achieved a net profit of ` 6.30 Crores forthe year ended 31 March_ 2018 after incurring a loss of ` 1.46 Crores for the year ended31 March 2017.
In light of positive sentiments in both domestic & global marketsyour Company is confident of posting similar growth in topline in upcoming financial year.Investment initiatives are being drawn up to support this as well as maintain our positionas the leader in gear technology in India.
As in the past we have focused on improving our efficiency and qualitythrough in-house retrofitting and rebuilding of our capital equipment. Where necessary wehave invested in fresh equipment and latest technology. We have moved ahead with ourautomation drive and robotic solutions initiative both in terms of softline and hardlinetechnology.
We continued with our customer feedback programme in the form of scorecards which give us critical inputs for improvement. After analysing these we reconsiderour actions on delivery quality and communication to achieve greater efficiency andaccuracy in our products.
While we have focused on improvement of our machinery we have laidgreat emphasis on enhancing the quality of our human resources too as we realise that itis a crucial input component. We have recruited and given on-the-job training to freshemployees. At the same time we ensure that we hone the skill sets and knowledge ofexisting staff by updating their education suitably in various facets includingtechnology behavioral training Communicative aspects Six-Sigma training etc.
We are committed to continue with our LEAN enterprise and operationalexcellence journey in the coming financial year. Towards this end we plan to undertakevarious initiatives at strategic and ground level to achieve these objectives.
Before I conclude I would like to thank our clients for theirunstinted support. I would also like to convey my appreciation for the valuable adviceprovided by my colleagues on the Board and the management team; and for the steadfastdedication of all employees across various locations.
Last but not the least I would like to thank our business associatesbankers and all stakeholders for the trust that they have reposed in Bharat Gears. We lookforward to your continued support while we endeavor to take the momentum of growth aheadfrom efficiencies to acceleration. Regards
Surinder Paul Kanwar
Chairman & Managing Director