It is with immense pleasure and pride that I present this Annual Report as FinolexCables completes 50 years of operations. Our five-decade growth is an inspiring journey ofturning challenges into opportunities and setbacks into success. All along the waydespite changing market dynamics we have remained true to the guiding principles of ourFounders: never compromise on quality and create market-leading products. Their vision ofexcellence has been at the heart of our culture for innovation expansion andmodernisation and will continue to be the North Star for our onward journey. We are alsoproud of the Finolex way of working - maintaining transparency both within theorganisation as well as outside and thereby engendering trust and credibility.
During the year under review India completed a special milestone when one of thebiggest reforms in history came to life with the rollout of the much awaited Goods andServices Tax (GST). While the temporary disruptive nature of the GST along with thelingering after-effects of demonetisation slowed down GDP growth finishing at under 7%India's long-term prospects remain bright. The Government's intense focus on stabilisingGST as well as other wide-ranging reforms should encourage pick-up in investment androbust consumption to spur growth.
We are pleased to share that your Company successfully navigated the challenges of GSTimplementation. Total revenue increased to Rs. 3012 Crores in FY 2018 as against Rs.2771 Crores in the previous year growing by 8.7% on year-on-year basis. In the backdropof muted growth in the wires and cables industry our performance demonstrates ourbusiness resilience. Profit after Tax (PAT) grew by 13.3% led by our continued focus oncost control and operational efficiencies. Our investment in branding is also rewarding uswell as we are able to command better prices leading to improved profit margins.
Product diversification has long been our strategy to build a stronger and more stablebusiness. Within our cables segment our product portfolio is all encompassing servingdiverse industrial and domestic requirements. Going beyond cables a whole gamut ofelectrical products including switches MCBs lighting products fans and water heatersis now available from the Finolex stable. We are pushing the reach of our electricalproducts through our vast distribution network while also building a separate network forevery product line. Electrical product portfolio expansion will continue on a steady basisto increase the share of our revenue from this vertical.
By foraying into consumer electrical products we aim to develop the B2C part of ourbusiness. A focussed marketing approach is in place to deepen consumer connect and helprealise our ambition. A convergence strategy of diverse marketing vehicles includingdigital marketing is being leveraged to enhance our brand visibility and reach out toend-consumers. We are also using sports as a marketing medium specifically cricketconsidering the impact it has nationally.
At Finolex Cables our industry leadership is underpinned by our manufacturingstrength. Regular investments towards backward integration setting up of new plants andexpansion at existing facilities have enabled us to generate tremendous value from themarket opportunities. Our emphasis on acquiring critical technologies has also bolsteredour ability to produce world-class products. We are putting up a new plant at Goa formanufacturing electrical conduits. Capacity expansion is underway at our plants for solarcables fibre optics and LAN cables. We are also undertaking backward integration for somemore of our products. Our sound financial health further strengthens our ability to fundbusiness expansion from internally generated funds as and when required.
As India moves resolutely forward to join the league of developed nationsinfrastructure development will remain critical to accelerate economic growth. Thisprovides us with considerable opportunities to grow our core business of wires and cables.The Government's ambitious schemes for improving power availability and accessibilitysuch as
Ujwal DISCOM Assurance Yojana (UDAY) and Integrated Power Development Scheme (IPDS)will boost demand for wires and cables. The 100 Smart Cities Project will also requiremodern cabling. Additionally developments in the sectors of telecom and railways andprogress on the Digital India mission are expected to provide a growth impetus for yourCompany. We also see considerable opportunity for our electrical products business asIndia with its favourable demographics continues to be a strong consumption led growthstory.
We have been ably supported in our journey by our employees whose dedication andenergy are second to none. I sincerely thank all our employees for their efforts. On apersonal note serving in the capacity of an Executive Chairman for the past five yearsit has been a privilege to work with all of you and our senior leadership team. I amextremely proud of all that we have accomplished together and am honoured to continue inthis role for the next term. I will remain fully engaged to drive the Company's futurestrategic direction.
My sincere appreciation to our distribution partners suppliers customers and ourbankers for their continued support; and our valued shareholders for their immense faithin us. We are very confident in the direction of diversification and expansion that we aretaking; this makes our Company better and stronger for everyone. As we embark on the nextera of our journey our rich legacy will continue to inspire us to deliver greater valuefor all our stakeholders.
Mr. D.K. Chhabria