"Growth is never by mere chance; it is the result of forces workingtogether."
-James Cash Penney
It gives me immense pleasure in sharing with you the details of continued success ledmomentum of your Company in 2016-17 despite demonetization impact on the Indian economy.In this challenging business environment Fineotex Chemical Limited delivered a steadyperformance in 2016-17 the credit of which goes to our vibrant organization which takesproactive measures
Fineotex Chemical Limited has grown steadily in these 13 years delivering betterperformance as the years go by and competing to its fullest potential. I express mygratitude for having placed your trust in us which motivates us to perform better.
Highlights of yourCompany's performance last year is as follows:
The Board of Directors during the year declared an interim dividend of Rs. 0.10per Equity Share of face value Rs.2/- each.
The Board of Directors authorized buy-back of its fully paid-up equity shares offace value of Rs. 2/- (Rupees Two only) each at a price not exceeding Rs. 40/- per equity
shares for a maximum amount of Rs. 39924400 (Rupees Three Crores Ninety Nine LakhsTwenty Four Thousand Four Hundred only) (excluding brokerage Transactional charges andtaxes if any) subject to maximum of 998110 equity shares from the existing equityshareholders/ beneficial owners other than the promoters/ persons who are in control ofthe Company from the open market purchases through BSE Limited and National StockExchange of India Limited. I am glad to state that the buyback of 998110 Equity Shareswas completed on 31st January 2017. The equity capital now stands reduced at crsthusimproving the valuation for the shareholders.
Your Company continues to do well globally by adding new geographies theexports for the year has risen by 21% of the topline. Domestically the Company has widenedits distributor network and currently has 85 agents all over India. The consolidatedrevenue growth of your Company was 18%
From the Standalone Financial Perspective we have seen consistent improvementfor the consecutive past years your Company has achievedEBlTDAof Rs. 1920 Lakhs agrowth of 5% and Profit after Tax of Rs. 1595 Lakhs a growth of 5.6% .The strong trackrecord of cash generation was sustained. The company continues to be cash surplus.
Fineotex Malaysia Limited the foreign subsidiary of Fineotex Chemical Limitedlaunched its new product "Aquastrike VCF- A Non Toxic & Ecofriendly MosquitoKiller Liquid". It is a non toxic non polluting Eco-friendly solution producedin Malaysia with European design engineering.
It is approved by Ministry of Health in Malaysia and declared as Non-Pesticide by thePesticide Board and allowed to be used freely by consumers. The Singapore PUB (PublicUtility Board) has approved it and it even has the EU approval for shipment to Europe. NSFhad also confirmed its Non Toxicity in drinkable water. The Vietnam and Cambodia bodieshave also approved and soon it will be under WHO registration application.
Our Company has managed to grow consistently thanks to our value added products withhigh entry barriers and ongoing Research and Development. It is our constant endeavour todeliver innovative products and services pertaining to the needs of the industry weservice. We continuously strive to increase our corporate client list by providing customtextile solutions as well as trouble shooting in critical situation thus improving ourwallet share permanently. Your Company manufactures predominantly chemicals for the entirevalue chain for the textile industry including pretreatment dyeing printing andfinishing process. The company also manufactures other chemicals for various industrieslike agro adhesives construction water treatment etc. Your Company witnessed a CAGRgrowth of 32% in last 5 years.
In the coming years your Company will continue to provide thrust to the core businessof Specialty Chemicals. Enhancing customer profitability and satisfaction identifyingappropriate textile solutions will rank in high priority. International business will be avery important lever of growth for the group with new geographies along with sale ofAquastrike in Asia and European Countries. Your Company will continue to target marketpenetration increase of market share service delivery and profitability. Looking aheadyour Company anticipates many developments in the economic and business environment someof which are local phenomena and some triggered by global trends. The Indian Economy is onthe threshold of the next phase of growth through government sponsored "Make-ln-India" programmes and other investment-led strategies In addition the forthcomingGST is expected to make operations simpler and seamless and convert unorganized marketinto organized thus improving our customer reach.
We appreciate the confidence and trust that you have shown in our Board management andour employees. I can assure you that we will continue our intense focus on the valuecreation for shareholders. We continue to keep our commitments to our shareholders andunlock the value within our Company. I look forward to a year of value creation with youour shareholders. I also extend my gratitude to the board Auditors ExecutivesEmployees Our Associates Statutory Authorities our Customers and Suppliers for theircontinued trust in the business.