I have always started this letter by sharing with you the operationaland financial achievements of Company during the year. But the past year has been aparticularly challenging one for India and its people. Let me begin by wishing all of yougood health and safety in these challenging times of COVID-19 series of waves of Covidduring the Financial Year 2021-22 has affected us all in some way or the other and many ofus lost our loved ones in the unprecedented times.
It's a pleasure to share with you the highlights of the progress beingmade by the Company since we met approximately twelve months back.
FY 2021-22 was a challenging year attributed to external and internalfactors. The COVID-19 pandemic continued disrupting several lives and dealt a severe blowto the economic health of the nation. In these challenging times the most remarkable andsatisfying achievement of the Company has been its humanitarian efforts in strengtheningthe nation's fight against the pandemic.
While the war against COVID is far from over we are confident that inthe end we will prevail. We care for each one of our stakeholders including employeesshareholders vendors customers and local communities. I will now update you on yourCompany's operating and financial performance.
While achieving Company objectives and maximising stakeholders' valuewe stayed true to the ethical values that our organisation is founded upon. Our businessesand their operations continue to remain entirely transparent.
Amidst a challenging scenario our strong portfolio distributionnetwork and brand equity enabled us to deliver a steady performance. It gives me greatpleasure to share with you an update on the overall performance of your Company whichperformed well and delivered another year of profit. I am glad to inform you that yourCompany continues to perform well on a sustained basis. Your Company achieved a turnoverof '1316.79 crores registering an increase of about 19.80% over previous year turnover of'1099.12 crores and earned a Profit before Tax (PBT) of '234.82 crores and Profit afterTax (PAT) of '177.13 crores.
We are making the right investments to scale this business higher. Wehave already made investments towards expanding our manufacturing capacities setting upnew capacities for critical inputs as part of backward integration acquiring more productregistrations and thrust on R&D for developing relevant products for key markets.
Agro Economy Overview
Indian agriculture is on a growth path with an increase in investmentsand private funding in the past few years. In India Agriculture accounts for a fifth ofthe gross value added and more than half the population engages in agricultural andrelated activities. Growth in agricultural products like fertilizers are bolstered by afavourable policy environment. 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.
Following Covid there was a shift in consumer preferences towardvegetarian foods which boosted agricultural yields and boosted the agrochemical business.
The global and Indian crop protection industry has been aiming forgeographic diversification of supplies to mitigate associated risks emerging out ofgeopolitical developments. Your Company is partnering with industry peers and theGovernment for appropriate policy support in building a supportive ecosystem and makingIndia a global agrochemicals powerhouse.
Considering the consistent profits being made by the Company yourDirectors have recommended a dividend of '1.50 (i.e. 15%) per equity share for thefinancial year 2021-22.
Health Safety and Environment
Your Company continues to conduct business with a strong commitment forenvironment preservation sustainable development safe workplaces and enrichment of thequality of life of its stakeholders and the community at large by maintaining the requiredISO standards Certification.
As we passionately strive for a better future we continue to set newparadigms every single day. In an unpredictable and challenging environment agility andinnovation are key to staying consistently successful. As technology becomes a drivingforce in all businesses and facets of life the future belongs to organisations that canlead and leverage the digital revolution. I would like to place on record my sincereappreciation to the Board of Directors for their guidance. I would also like to express mygratitude to all our stakeholders for their unwavering faith. I am confident that we aregoing to ultimately win the fight against COVID-19. With our collective effort India willeventually triumph over the crisis and emerge stronger bigger and better than ever.
We believe that business priorities co-exist with social commitmentsand our activities support inclusive growth. While we work towards achieving our goals wesee the need to meet the society's evolving expectations. And therein lies the need toform enriching partnerships that will help us create a sustainable future.
I also take it upon myself to show my gratitude towards allstakeholders for their unwavering support and trust towards the Company.
|Thanking you all. |
|SAT NARAIN GUPTA |
|Chairman & Managing Director |