It gives me pleasure to present before you the highlights of the past fiscal year andthe outlook for the year ahead.
In the financial year 2016-17 GMM Pfaudler Limited posted standalone revenues of `2663 million up 16% from the previous year's ` 2296 million and consolidated revenuesof ` 3530 million up 21% from the previous year's
` 2921 million. Profit before tax increased by 46% to ` 405 million on standalonebasis and increased by 57% to ` 469 million on consolidated basis. In spite of thesluggish economic environment our Company managed to significantly grow revenue andprofitability.
India has emerged as the fastest growing major economy in the world and the growth isexpected to be maintained in 2017-18. With recent Government initiatives such asMake in India' and a favourable monsoon the growth could be even higher. While thefirst two quarters of the year saw a recovery of the economy demonetisation had adampening effect on aggregate demand. However looking ahead demonetisation is expected tohave a positive impact on the economy. Even though GST may cause some short termdisruptions it will help stimulate the economy by bringing in greater transparency andsimplicity in tax administration and compliance in the medium to long term.
The key demand industries for GMM Pfaudler Limited - Pharmaceuticals SpecialtyChemicals and Agrochemicals are all expected to grow at a CAGR of 10-15% over the next 5years. These industries will continue to invest in their plant and machinery to increasetheir capacity as well as to upgrade their facilities. Backed by this demand our orderbook across all our business lines looks robust and we are confident of maintaining thegrowth momentum going forward.
GMM Pfaudler Limited has maintained its leadership in Glass Lined Equipment byleveraging our brand technology quality and after sales service. As we move forward weare looking to further strengthen our leadership position by increasing our manufacturingcapacity and reducing our costs.
GMM Pfaudler Limited's Heavy Engineering business is also seeing some traction as aresult of the investment we made in improving our infrastructure and enhancing ourcapabilities. We have managed to grow this business by creating a significant competitiveadvantage by leveraging our engineering capabilities multiple code accreditations andproven track record of manufacturing complex equipment. This has also helped us tostrengthen our product portfolio and reduce the cyclicality of our main business.
GMM Pfaudler Limited's Proprietary Products business continues to grow at a steady paceby targeting critical applications in the domestic and export markets. To further exploitthese opportunities we have enhanced our process engineering capabilities so as toprovide end to end solutions to our customers.
As we move into the second year of our Strategic plan Mission 2020 we havechanged our theme from Creating our Future' to Accelerating Growth'. We hopethat many of our initiatives that we implemented will act as a stimulus for growth in thecoming years.
I would like to place on record my gratitude to all our valued shareholders who haveplaced their confidence and trust in us. As we continue on our journey we look forward toyour continued support.
Tarak Patel Managing Director