I have great pleasure in extending you all a warm welcome to our 30th Annual GeneralMeeting of Bharat Rasayan Limited. On behalf of the Board of Directors and my colleaguesI thank you all for your kind presence here today. The Meeting called to order. Notice ofthe Annual General Meeting alongwith Explanatory Statement with the consent of the memberstaken as read. The Audited Financial Statements including Balance Sheet as at 31st March2019 Statement of Profit and Loss and Cash Flow Statement for the year ended on that datewith the consent of the members taken as read. Corporate Governance Report Board's andAuditor's Report for the year ended 31st March 2019 with the consent of the members takenas read.
It's a pleasure to share with you the highlights of the progress being made by theCompany since we met approximately twelve months back.
FY 2018-19 was a challenging year attributed to external and internal factors.Externally environmental crackdowns in China continued and disrupted operations ofseveral upstream suppliers some of whom even shut down. This triggered a raw materialscarcity and led to price hikes. Closer home erratic monsoon uneven rainfalldistribution and its prolonged withdrawal in certain locations led to a drastic shiftingin crop and pest load along with rural distress.
Amidst a challenging scenario our strong portfolio distribution network and brandequity enabled us to deliver a steady performance. It gives me great pleasure to sharewith you an update on the overall performance of your Company which performed well anddelivered another year of profit. I am glad to inform you that your Company continues toperform well on a sustained basis. Your Company achieved a turnover of Rs 992.18 croresregistering an increase of about 22.43% over previous year turnover of Rs810.40 crores andearned a Profit before Tax (PBT) of Rs 155.13 crores and Profit after Tax (PAT) of Rs111.52 crores.
Our international business performed well. Disruptions in China led to customerslooking for better avenues for consistent and reliable supply of agro chemical products. Aproven track record worked in our favour. We added new customers achieved new productregistrations and also retained existing customers through strong customer relationsmanagement.
We are making the right investments to scale this business higher. We have already madeinvestments towards expanding our manufacturing capacities setting up new capacities forcritical inputs as part of backward integration acquiring more product registrations andthrust on R&D for developing relevant products for key markets.
Agro Economy Overview
Agrochemicals are chemicals that help boost crop productivity through prevention ofdestruction of crops by pests such as insects weeds fungus etc. The global economy ingeneral and Indian in particular is facing a multitude of challenges such as to feed anever growing population reducing arable land bank and dealing with adverse climaticchanges. Under such circumstances the traditional methods of growing more crops arerendered inadequate. There is a growing acceptance to launch advanced agrochemicalsolutions to achieve higher field productivity.
Agriculture which contributes to 16% of the GDP and provides employment to nearly halfof the country's population plays an important role in the Indian economy. India is aleading farm producer as well as an exporter of many agro commodities. Its agro economyfaces multiple challenges which is reflected in the relatively lower productivity comparedto the advanced economies of the world. Science provides solutions to address some ofthese challenges and in turn these provide opportunities for businesses involved inagriculture inputs.
Indian agriculture is on a growth path with an increase in investments and privatefunding in the past few years. The sector is expected to grow with better momentum in thenext few years owing to an increase in investment in agricultural infrastructure such asirrigation facilities warehousing and cold storage. Factors such as reduced transactioncosts time better port gate management and fiscal incentives will also contribute tothis upward trend. Furthermore the increased use of genetically modified crops is alsoexpected to better the yield of the Indian farmers.
Considering the consistent profits being made by the Company your Directors haverecommended a dividend of Rs 1.50 (i.e. 15%) per equity share for the financial year2018-19.
Health Safety and Environment
Your Company continues to conduct business with a strong commitment for environmentpreservation sustainable development safe workplaces and enrichment of the quality oflife of its stakeholders and the community at large by maintaining the required ISOstandards Certification.
Before I conclude I would like to place on record my appreciation to all my colleagueson the Board past and present for their valuable contribution in the growth of theCompany. Finally I would like to thank you our valued shareholders for your unwaveringsupport in our journey to deliver value to all our stakeholders.
Thank you ladies and gentlemen.
SAT NARAIN GUPTA
Chairman & Managing Director