It is a great pleasure to present the Annual Report for FY 2020-21 especially as theCompany forged ahead with a creditable performance despite the challenges of anunprecedented scale wrought by the global pandemic.
The year was marked by the Company out performing all operating parametersstrengthening the balance sheet and implementing various strategic initiatives to buildButterfly as a Market Leader. As one of India's largest manufacturers of HouseholdAppliances Butterfly has emerged as a trusted brand to millions of customers across thecountry.
The year 2020 was marked by the devastation and downturn triggered by the Covid-19pandemic across the world. According to IMF - World Economic Outlook the Global Economyplummeted to - 3.3 per cent with a sharp contraction in manufacturing across geographiesin the first quarter of the year. The Indian Economy also plunged with GDP recording - 8per cent on the back of decline in growth in core industry sectors and weak market demand.The impact of the pandemic and lockdown was however disproportionately felt acrossindustries. While travel tourism entertainment etc. fared badly sale of essentialgoods including Household Appliances gained momentum.
The challenges of staggered operations coupled with weak market demand impacted growthin the first quarter of the year. However your Company displayed great resilience andagility to record a very strong performance. Capacity utilisation at the Plants was at arecord high for the remaining three quarters to meet the burgeoning market demand. YourCompany accelerated the process of digitalization and laid the framework for bettercustomer responsiveness and turn-aroundtime enhancing the ease of buying. On-line brandedsales touched a new peak during the year contributing to a significant percentage of NetSales.
We continued to expand our pan India presence with a more robust omni channel networkaccessing new markets for greater growth with the Northern regions accounting for 24% ofour total sales.
The Net Income of the Company during the year ended 31st March 2021 was Rs. 869.6crores as against Rs. 678.7 crores for the year ended 31st March 2020. The Company made aNet Profit After Tax of Rs. 36.7 crores against the Net Profit of Rs. 3.3 crores for theprevious year.
The Butterfly Spirit of adapting to change has always been a core strength. A strengththat has enabled the Company not only to be resilient but also to stay ahead of the curve.
With the Government of India's focus on 'Aatma Nirbhar Bharat' and Productivity LinkedIncentive (PLI) and tariff barriers to pre-empt cheap imports domestic manufacturing andindustry development has been given primary focus. This together with the China + Oneprogrammes of Global manufacturers considering India as the next preferred destinationthe potential for growth is considerable. So is the opportunity for Domestic ApplianceManufacturing.
The Butterfly Spirit of adapting to change has always been a core strength. A strengththat has enabled the Company not only to be resilient but also to stay ahead of the curve.Keeping pace with the disruptions and changing technologies the Company launched a widerange of new products during the year.
Butterfly is embracing new generation technologies to deepen its customer engagementwith innovative and futuristic digital products and services that define shopping in theNew Normal.
The highly volatile and changing business dynamics mandate a prudent risk managementframework and strong well-established financial practices. In line with this we have inthe past year put in place a strong framework of fiscal discipline to manage cost paredown the debt burden and prevent balance sheet vulnerabilities.
Despite the challenging business environment Butterfly worked with great diligence tofuther strengthen the fundamentals and to create long term value for all its stakeholders.
Trust transparency honesty integrity and accountability define the Butterfly ethos.This has been the guiding principle which has directed the Company and its Board membersto carry the legacy forward.
At Butterfly our people have been our greatest assets and during these challengingtimes they have demonstrated great courage and commitment to achieve such amazing results.I would like to thank each one of them for their contribution to the performance of theCompany.
I would like to express my gratitude to our customers stakeholders bankers andsuppliers for their loyalty and continued support. Last but not the least i would like toexpress my sincere appreciation and thanks to all our shareholders for their continuedsupport and trust reposed in us.
|Yours Sincerely |
|V. M. Lakshminarayanan |