My Dear Shareowners
I am very happily presenting our performance for FY 201819 and report that the fiscal2018-19 despite all the challenges has been an exciting year for Gallantt Ispat and ouradherence to our strategy leaves us confident of a better year ahead.
Focussed efforts in expanding the plant capacities and expanding market by looking atthe quality products resulted in volume growth to be the highest ever since installationof the manufacturing facilities. We continuously focussing in manufacturing qualityproducts thereby moving forward in our journey of being the most inspirational steelmanufacture brand for consumers. FY 2018-19 was an excellent year for Gallantt Ispat andreported the highest ever performance in terms of revenue growth profitability andstrategic growth. Our Company has reported a Revenue from operations at ' 1229.27 Croresgrew by 109.46% on year to year basis (standalone) and Profit after tax stood at ' 130.22Crores thereby recorded a growth of 142.87% in Net Profit on year to year basis(standalone). Despite the unforeseen challenges from the external environment we continueto strengthen our internal operations by upgrading technology streamlining processes andrationalization of human resources.
The Indian economy is likely to grow at around 7% over the next decade. As GDP growthand steel consumption growth have displayed a strong correlation in recent past steeldemand is likely to grow at around 6-7% which implies that the country would need toproduce an additional 7 million tonnes of steel every year with consumption expected tocross the 100 million tonnes milestone in 2019. India's apparent steel use per capitastood at 70 kg in 2018 which is only one-third of the world average. This indicates thatIndia has a huge potential for steel demand growth. Rapid urbanisation increasingpopulation and infrastructure development Government initiatives such as 'Make in India'will provide impetus to the growth in steel demand. The plan for building smart citiesaffordable housing dedicated freight and high-speed rail corridors is expected to createsignificant demand for steel in the country. Further India has set a target of becoming a$5 trillion economy by 2024 and to bring that target within the realm of reality thegovernment is likely to spend heavily on developing social as well as economicinfrastructure. With leadership position in the Uttar Pradesh Bihar and Jharkhand andmodern integrated production facilities Gallantt Ispat is well positioned to capitaliseon the opportunities and deliver strong growth.
The Company during its more than a decade existence has constantly evolved to stayrelevant to meet the needs of customers and contribute to nation building. It remainsfocused on building sustainable value to all our stakeholders while upholding the Gallanttvalues. At the overall level I am very happy with the performance we have been able todeliver notwithstanding difficult business conditions. Our Company achieving highest evergrowth is definitely an achievement that every stakeholder of this organisation should beproud of.
Last but not the least our team is the backbone of our organization without theirexperience expertise and commitment we would not have scaled this height that we have insuch a short span. Our journey our success is really about our people. Our industry isone that is critically dependent on skilled hands and experience. Our Company is fortunateto have teams of experts knowledgeable and talented people.
I would like to take this opportunity to thank all our shareowners for their continuedsupport and confidence in the Company and the management.
C. P. Agrawal