It gives me great pleasure to share with you an update on yourCompany's performance for the Financial Year 2018-19. This was an exceptional yearfor your Company as both verticals - manufacturing and consumer - came together to delivera stellar performance.
During the year under review your Company reported revenues of र1073 crore a growth of 15% over the previous year. EBITDA grew by 36% to reach र 102crore and net profit increased from र 7 crore in FY17-18 to र 31 crore inFY18-19 translating into EBITDA margin of 10.3% and net profit margin of 3.1%.
Profitability improvement was driven by higher realizations in bothbulk and consumer businesses combined with enhanced capacity utilization.
The overall industry environment was very conducive with Governmentstrengthening its commitment to ethanol blending and reducing dependence on imports in thewake of volatile crude prices. The Biofuel policy approved by Cabinet permitted ethanolmanufacturing from various grains and moreover OMCs placed a premium on grain ethanol overthe traditional C-grade molasses based ethanol. Your Company being one of the largestgrain based distilleries in the country was in a strong position to leverage thesedevelopments. We secured allocation of 35 million liters of ethanol to be supplied to OMCsover the period of March'19 to November'19. This ensures guaranteed off-take forour bulk alcohol in states of Haryana and Bihar which due to surplus supply situation inthese states is dependent upon neighbouring states/ exports for sale.
The sudden increase in ethanol requirement and consequently shift ofcapacities from ENA to ethanol had a positive impact on bulk alcohol realizations whichquickly moved up in December'18 reflecting a huge supply deficit situation in theindustry.
The Bihar plan was re-commissioned in October'18 following ordersof the High Court to allow manufacturing of ENA in the state and led to addition ofanother 26 million litres to our bulk alcohol capacity taking the overall operatingcapacity to 150 million litres. We further stood to benefit from the ethanol wave withthis enhanced capacity.
The consumer business also contributed to profitability improvementdriven by a price hike of ~ र 31 per IMIL case in Rajasthan our largest IMIL market.Though we lost some ground in the state due to price hike attracting higher competitionour market share remained strong at ~30%.
Given our strong distribution reach we expect to regain some of thelost ground in current financial year.
Your Company's premium IMFL venture Unibev led by the highlyexperienced and regarded Mr Vijay Rekhi witnessed healthy traction as it spread its wingsin South and East India and launched two more brands in whisky category. Unibev now offersa portfolio of 3 brands and is present in 5 states. All brands have been highliyappreciated by both trade and consumers. The Unibev team is all set to launch more brandsand further expand geographic footprint in the current financial year.
Your Compay is placed in a solid position as existing businesses arethriving and path to growth is well defined with Unibev leading the way. It is an integralpart of our business model and growth strategy as we seek to allocate free cash flowsgenerated by the existing businesses into Unibev.
I take this opportunity to thank our valued employees businesspartners vendors as well as other stakeholders for their unstinted support during thisexciting journey. I would also like to express my sincere gratitude to all of ourshareholders for your continued support and encouragement.