I am happy to report that your Company continued its journey of profitable growth inthe financial year (FY) 2017-18.
Maintaining its position in key markets your Company achieved a revenue of f 903.35crores an increase of 5.3% over the previous year. Profit before tax (PBT) was Rs 153.01crores 24.3% higher than the figure recorded in the previous year. Your Company achieveda significant milestone of earning over 1100 crores profit after tax (PAT) recording PATof t 105.12 crores. The return on capital employed (ROCE) was 23.8%.
Considering the performance your Board of Directors has recommended a dividend of Rs4.50 (45%) per share.
The increase in profitability was largely driven by outstanding performance ininternational markets. The global salmon aquaculture industry continues to perform welland your Company secured wider and deeper reach through its value-added products. Apartfrom this your Company saw significant growth in new markets of South America andOceania. The international business was ably supported by our manufacturing plants whichexecuted orders in a timely and cost-efficient manner. Two recently introduced productsreceived excellent market response and showed the potential to make significantcontribution to your Company's balance sheet in the future as well.
Comparatively your Company's performance in domestic markets was subdued mainly dueto the teething troubles associated with the new Goods and Services Tax (GST)implementation. As reported by the Reserve Bank of India (RBI) in its fourth bi-monthlymonetary policy review of 2017-18 GST had an adverse impact on the manufacturing sectorand also affected the revival of investment activity which was already hampered by thestressed balance sheets of some banks and corporates. However with a strong focus onexecution your Company could improve revenues from domestic markets in the second half ofthe financial year. Particularly our geo-synthetics and agriculture divisions recordedimpressive performance and we see good scope of increasing returns in these segments.
Application-focused innovation is the driver of your Company's growth and in the yearunder review our R&D team notched several achievements that had a direct impact onour profitability. The team is currently engaged in development of some break throughproducts that will offer significant value propositions and enhance the profitability ofour customers across the globe.
It gives me great satisfaction to report that all our internal teams worked tirelesslytowards the achievement of clearly defined goals. The efforts taken and the resultsobtained greatly increased internal confidence organizational acumen and the ability toplan and execute in harmony. These gains were reinforced by several HR initiatives toencourage employee engagement team-building and demonstration of core values in dailyoperations. We are proud to state that we are recognized as a 'Great Place to Work1 andare ranked 34 great mid-size workplaces in India. This reflects the commitment andengagement of our team towards achieving your Company's goals and delivering excellentproducts and services to our customers.
As you are aware more than 40 years ago my late grandfather Mr. Abasaheb Garwarefounded Garware-Wall Ropes Ltd. with a vision of building an institution of modern Indiabuilt on a foundation of excellence in quality customer focus innovation and enhancingvalue to all our stakeholders. The vision was further built by my father Mr. RameshGarware. We are proud of this legacy and will do everything to protect and build on thisvalued heritage. But we also recognize that we have evolved as a Company: We have becomeglobal technically advanced and with presence in many segments. Hence after intensiveresearch to understand our brand equity we have decided to modify the way we projectourselves to the outside world so that it reflects who we are truly. Accordingly we havedecided on a new name a new logo and a new positioning statement.
To build a globally admired Company while preserving our rich legacy we are nowGarware Technical Fibres Limited. Our new positioning statement is: Better Ideas inAction. The rationale for the choice of name logo and positioning statement is explainedin an earlier part of this annual report.
Your Company has a clear roadmap for the near future focused on achieving itspotential strategically tapping identified opportunities continuously optimizing costsworking with agility and sustaining a winning culture. I look forward to your support inthis effort to build a very strong and successful organization that is the preferredpartner of our customers across the world whilst enhancing stakeholder value.
With warm regards
V. R. Garware
Chairman & Managing Director