I am happy to present you the legendary performance of the Company forFY2018-19.
This was a landmark year for the Company as we crossed H1000 crorerevenue benchmark for the first time in our history. We crossed all the financiallandmarks with wide margins over last fiscal. We reported a revenue of H1020.49 crore up34.8% over 2017-18. EBITDA of H133.56 crore represented 49.8% growth over 2017-18. Netprofit of H61.95 crore was 75.8% higher over 2017-18. We continue to strengthen ourmargins: EBITDA margin strengthened by 128 bps from 11.72% in FY 2017 to 13% in FY 2018while net profit margin strengthened 140 bps from 4.63% in 2017-18 to 6.03% in 2018-19.
How we strengthened our business
The Company strengthened its business through various initiativesduring the year under review.
One we had completed the expansion of 21000 TPA at our Bilaspurunit in February 2018 and we enjoyed the full benefit of the expanded capacity during theyear under review which helped us to increase the revenue and earn better margins. Twowe worked upon operational efficiencies and increased capacity utilisation beyond 100%.
Three during the year under review we installed 5.04 MW rooftopsolar power plant enhancing supply stability on the one hand while rationalising costs onthe other.
Four we generated a stronger traction for our products byshowcasing the same to global community through participating in various internationalexhibitions. As a result we increased our exports to H71.17 crore during 2018-19 fromH35.56 crore during 2017-18.
Five we raised capital of H100 crore through QIP and proceeds wereutilised for repaying a part of our long-term debt and fund a portion of our generalcorporate requirements. During the year under review we repaid borrowings (net) of H93crore.
Six our credit rating was improved to "A" by ICRA &CARE which helped us to reduce cost of borrowings as well as other financial costs.
India is one of the fastest growing economy globally and Government isdetermined to make it five trillion economy by 2025. Projected growth in economy wouldincrease the disposable income and so the consumption particularly in FMCG and otherconsumable products. Growth in consumable product would drive the consumption of PET aspreferred packaging material.
With the growing consumption of plastics concern is now focused forits collection and recycling. Government is making the regulation stricter for reducingthe consumption of plastic which is non-recyclable. Now the manufacturers and producersare liable for safe disposal/ recycling of plastic packaging associated with theirproducts after the end of its life cycle. The implementing agencies have been equippedat the same time for compliance of environmental regulations. With increasing awarenessenvironment protection has become an issue of global attention. To make their productssustainable global textile apparel and retail companies are prone to use more recycledstuff in their products and various brands have set different time lines for replacing thevirgin stuff with recycled material. Some countries have also made regulations to usedefined quantum of recycled plastic in place of virgin.
All the above factors coupled with amenability of PET plastic incollection and higher rate of recycling worldwide indicate the robust growth inconsumption of PET plastic and regulatory compulsion of recycling provides the greateropportunity for recycling industry. Further with enhanced focus on sustainability by themanufacturers and growing consumer preference for recycled material premium is likely tobe commanded by recycled products over virgin one.
However challenges are also there in terms of ongoing trade warbetween two major world economies US and China which are affecting other growingeconomies like India because of new dumping ground of China. Also there is recession insome sectors of the economy particularly textile sector because of trade war demandrecession falling prices of crude cotton as well as polyester products dumping fromChina and overcapacity in the sector. These challenges may hit the textile sectoradversely in short term.
Being the prominent recycling company along with sizable manufacturingcapacities enriched product portfolio strong marketing and sourcing network with strongbalance sheet and limited repayment obligations we are uniquely
Recycled _bres offer superior value
|Virgin ||Recycled |
|Moisture regain value in 150 denier of 0.040% ||Moisture regain value in 150 denier of 0.045% |
|Bending length in 150 denier fabric of 2.75 ||Bending length in 150 denier fabric of 2.1 |
|Abrasion resistance of 1-7.83% ||Abrasion resistance of 1-1.16% |
|Tenacity: 23.55 [need unit] ||Tenacity: 20.24 [unit] |
|Tearing strength (150 denier) ||Tearing strength (150 denier) |
|Warp: 2986.6 ||Warp: 2858.6 |
|Weft: 3408.6 ||Weft: 2986.6 |
positioned to deal with most alarming issue of the day and take ourshare of pie in long term sectoral growth barring some short term heat waves which maycome across due to challenges mentioned above. I am thankful to all our stakeholders fortheir unstinting support. We remain motivated to build a sustainable long term future andadd significant value for all across the coming years.
|Best regards |
|Shyam Sunder Sharmma |