Dear Friends & Stakeholders
We are living through a difficulttime for society and our economies. The crisis aroundthe COVID-19 pandemic has left no one untouched. The virus is not only claiming humanlives it is subjecting individual countries and the global political order toextraordinary stress rarely seen in peacetime. But these challenges only reinforce ourresolution to continue working. The challenges are unique as COVID-19 induced lockdownshave disrupted the economic activity. Your company achieved many admirable wins andmilestones through the first of FY 2020. But it was in the final year that the true natureof its purpose-driven worldview truly shone through.
Your company prioritized the health and safety of its employees kept customers'mission critical systems running under very difficult circumstances and pitched in to helpcommunities across the nation to battle the pandemic.
As the Chairman of the Board of Directors of Gulshan Polyols Limited let me assure youthat despite myriad challenges your company is focused on maintaining its growth momentumand delivering value to its stakeholders. It has great potential to grow and is constantlyscouting for opportunities arising out of Make in India and "Aatma-NirbharBharat" calls given by Hon. Prime Minister.
I am happy to announce that your company is working towards becoming "almost"Long term Debt Free company in the years to come. You will be happy to know that thePromoter Group has acquired substantial market share from secondary market up-tothresh-hold limit of 5% per year over 2 consecutive years depicting strength andconviction in its company's affairs.
Company's Overall Performance:
It gives me pleasure to share with you an update on the overall performance of yourCompany in 2019-20. It was yet another difficult year for the global economycharacterized by low growth and geopolitical uncertainties. In India rural demandcontinued to be sluggish in the early part of the year on the back of two consecutive poormonsoons. The overall market showed a steep downfall owing to steep rise in raw materialprices thus imposing great pressure on selling prices and also leading to exports gettingunviable for a majority of our products.
During the financial year ended 31st March 2020 Revenue from operations decrease toRs. 620.79 crores from Rs. 673.88 crores in the previous year. Registered decrease in7.88% on net revenue basis. EBIDTA decrease of Rs. 69.82 crores against the previous yearRs. 85.61 crores. Profit after tax (PAT) of Rs. 20.58 crores in F.Y 2019-20 against Rs.21.42 crores in the previous year.
Your Company in the tune of progressive Dividend Policy declared and paid an interimdividend of 70 percent (0.70 per fully paid-up equity share of Rs. 1/- each) in February2020 for the financial year 2019-20 on the paid up equity share capital of the company. Itmay be recommended that same be treated as a Final Dividend for the Financial Year endedMarch 31 2020 amounting to Rs. 328.42 lakhs.
Your Company is also committed to its social responsibility agenda and contributesmeaningfully to the communities that it operates in. Your Company continues to focus inthe areas of Health Community Welfare Education Health & Hygiene Rural developmentand Water management to enhance the livelihoods of people in its operating communities.These initiatives along with several others reaffirm our belief that addressing societalneeds and business growth go hand-in-hand.
The next few months will be difficult but your company is strong with deep withcustomers and partners enviable scale a diversified business mix a robust and resilientbusiness model and strong financials. It is well positioned to weather the storms aheadand take advantage of opportunities that come up during the downturn to acquire newcapabilities and gain market share. In the post pandemic world technology will play anever larger role in helping enterprises adapt to the new normal and differentiatethemselves. Your company is well poised to take the lead in partnering customers torecover and rebound on to their growth and transformation journeys.
On behalf of the Board of Directors of Gulshan Polyols Limited I would like to takethis opportunity to acknowledge and thank our bankers and vendors for their trust andsupport. I am deeply thankful to the continued support of our esteemed consumers businessassociates suppliers and legal authorities for their loyalty and trust in all ouractivities. Most importantly also my sincere appreciation to all the shareholders for thetrust reposed by them in the Management of the Company and also for continued support inour journey to create long-term value.