I am happy to present before you the 37th Annual Report of the Company.
Your Companys performance during the year under review focused on volume growth.The pipes and fittings volume increased by 20.4% y-o-y basis resulting in a 5.2% increasein total revenues to Rs. 2738 Crore for 2017-18 against Rs. 2602 Crore in the previousyear. However volatile raw material prices and increased operational costs did impact theprofitability and margins. Our EBIDTA stood at Rs. 484 Crore against Rs. 563 Crore whilePAT was Rs. 299 Crore against Rs. 352 Crore a decrease of 15.2% Our association withLubrizol Corporation USA for CPVC pipes and fittings increased our visibility in theplumbing and sanitation segment. Finolex FlowGuard Plus CPVC Pipes and Fittings recordedsales of Rs. 147 Crore contributing 5.4% to the total revenue during the year. Ouroverall tonnage for the CPVC segment increased by 42% to 5878 tons. We continue toconduct workshops and training programs pan India for plumbers and other professionals ona regular basis to enhance our product and brand awareness.
We are looking towards the future a future which is full of growth and opportunity forall - our country business partners customers employees society and your Company. Withour increasing product portfolio expanding dealer network and a substantial sales forceout on the field we are on track to offer an even better service to our customers. Toensure this within the next few weeks we will have implemented SAP S/4 HANA which willtransform the Company from its traditional manufacturing background to a customer-centricbusiness. SAP S/4 HANA will be the backbone of FILs future IT landscape. Yourcompany will attain operational excellence across all areas of the value chain with focuson the supply chain and sales.
We are poised to embrace new opportunities. Our team continues to work relentlessly todevelop new products and increase market share. We are expanding our capacity across ourthree plants Masar Pune and Ratnagiri with investments of Rs. 250 Crore in FY18and FY19.
As a responsible corporate we believe in spreading hope amongst those who feel theydont have the right to be hopeful. Having joined hands with Mukul Madhav Foundationour CSR partner we have been able to touch lives in the following sectors.
Social and Community
Under each sector there are credible projects which are primarily focused on reachingout to people in rural India. We consciously increase our CSR budget year on year there byenabling and assisting our CSR partner to undertake more projects and reach out to manymore worthy causes.
I am delighted to inform you that your director and Managing Trustee of Mukul MadhavFoundation (MMF) Mrs Ritu Chhabria was honoured with a prestigious GlobalAward by the Global Sindhi Council presented by Shri Ch. Vidyasagar RaoHonble Governor of Maharashtra "for her eminent innovative and historiccontribution in the field of healthcare social welfare and education." A strongpillar to our sustainable growth is the commitment and talent of the employees of yourCompany. We undertook several activities for training to reinforce the occupational safetyand health conditions of the employees at our facilities.
The Board remains firm in building the blocks of growth on a foundation of soundgovernance. I would like to express my appreciation to every Board member for theirinvaluable contribution. With the continued support of our shareholders customersdealers vendors and employees I look forward to another exciting year of growth andsuccess.
Prakash P. Chhabria