The year 2020 marks the 30th year of your company's operations and we can look backwith a sense of pride and fulfillment at the milestones achieved during this journey. Inthe span of 30 years we have grown existing business added new ones and more importantlyconstantly adapted to the changing ecosystem in which we operate. The financial year2019-20 has however ended on a somber note with the onset of the Covid 19 virus. In thefirst quarter of the financial year 2020-21 we have had to reset our priorities withsafety of our employees being of prime concern. The full impact of the disruption to ourbusinesses is difficult to predict at this stage. Most sectors of the economy will passthrough a period of uncertainty with considerable negative impact. Under thecircumstances necessary steps are being taken for safe conduct of business activitieskeeping costs under control maintaining adequate liquidity and sustaining business.
The overall operating performance of the Company during 2019-20 was stable withbusinesses like Sugar Shriram Farm Solutions Fenesta and Cement registering growth ledby better product prices and volumes. Chlor-Alkali business witnessed a sharp decline inproduct prices as domestic caustic prices aligned with the international prices. TheCompany's total revenues on consolidated basis from operations stood at Rs.7767 Crore inFY20 vs. Rs.7771 Crore last year. Revenue of Sugar business was up by 7% with higherethanol volumes as well as better realization of Sugar. Shriram Farm Solutions alsoregistered a 6% increase in revenue lead by volumes and realization in 'Value addedinputs' vertical. Revenue of chemicals business was down by 10% driven by lowerrealizations partly offset by higher volumes. PBIT Margins improved in all businessesexcept Chemicals. This impacted the company's overall PBDIT margins which declined from19% last year to 17% in 2019-20. Our focus on cost efficiencies and scale will continue inorder to build resilience in all Business. Our existing commitments towards capacityexpansion remain and future investments will be made after due evaluation.
The GDP growth rate during 2019-20 showed a declining trend each quarter. Further theimpact of COVID 19 has resulted in substantial decline in economic activity. It will testour resolve to overcome these challenge however we are confident that with the recentreforms announced by the central government the growth will be back. We believe that theagriculture related business should remain relatively insulated; however ChemicalsPlastics and Fenesta will face difficulties.
During the year CSR activities have grown further and continue to be a central part ofthe company's operations. The four pillars that form the basis of our programme are 1.Preventive Health & Sanitation 2. Education Vocational Skills & Livelihood 3.Environment Sustainability 4. Rural Development. These initiatives are in line with thelong term CSR plan and are aligned to priorities of the government. The Projects taken upare designed to meet the needs of identified communities to improve their health statusand make them self reliant
We would like to take this opportunity to thank all our stakeholders members of theboard business associates employees suppliers government agencies lenders andshareholders who have contributed to the growth of our company. With their cooperation weare confident of delivering superior value to all stakeholders.
With best wishes
|(Vikram S. Shriram) ||(Ajay S. Shriram) |
|Vice Chairman & Managing Director ||Chairman & Sr. Managing Director |