Our retail business got a major boost during the year from our focused initiatives toexpand our dealer / distributor network coupled with aggressive branding and marketingcampaigns
It gives me immense pleasure to report another year of excellent growth underpinned byan overall positivity across the entire business fabric of your Company. Amid a favorableexternal environment we notched many milestones of success during FY17 at the back of ourcontinued efforts to strengthen our connect with all our stakeholders especiallyconsumers. This powerful connect steered our growth across verticals and has laid thefoundation for further expansion and progress through the entire value chain of ourbusiness. The dynamically-evolving industry landscape with its burgeoning opportunitiesin the form of the government's development schemes across sectors and the growing privateindustry demand for cables offers an exceptionally robust platform for our future growthwhich we are well-placed to leverage.
Notwithstanding certain challenges in the global environment and the demonetizationblip on the domestic economic horizon the Indian economy continued to consolidate thegains it had achieved in the previous year to further restore macro-economic stability.The global sluggishness did not impact the Indian growth story with inflation remainingon a stable wicket and fiscal deficit and current account deficit improving further aspercentage of GDP. The government's push to the infrastructure
construction power ports oil & refinery sectors as well as its decision torevive the stalled fertilizer projects continues to boost industry and consumerconfidence auguring well for our business. Further boosting our growth prospects is thestrong demand for cables unleashed by the private sector especially in power transmission& distribution.
Financial & operational performance
Amid the positive macro environment and led by a growing consumer connect yourCompany posted strong performance during FY17 to report 15% overall growth in turnoverwith net sales going up from ' 2326 Crores in FY16 to ' 2669 Crores inFY17. PAT for the year increased a whopping 59% - going up from ' 62 Crores to ' 99Crores. What is particularly satisfying about this performance is that it came acrossverticals and regions with the domestic and exports business contributing equally to ourLT&HT cable revenues. Exports in particular has emerged as a major growth propellerfor your Company with revenues in this segment almost doubling over the previous year.The slight decline in EHV revenues was attributable to the infrastructural development atthe Chopanki plant where we have added a new 400 kV production line to strengthen ourclient connect in this business to facilitate its future growth.
Finding new ways to strengthen retail connect
Our strategic focus on continuously strengthening the connect we have successfullybuilt with the consumers has augmented our performance in both the retail and theinstitutional segments. Our retail business got a major boost during the yeai from ourfocused initiatives to expand our dealer/distributor network coupled with aggressivebranding and marketing campaigns. This two-pronged approach not only helped strengthen ourrelationships with the end consumers but had a direct impact on our retail sales whichgrew 12.90% over the previous year as we continued to scale-up our brand salience whiletaking proactive measures to harness the emerging opportunities across the key sectors ofnational growth.
We see the dealers emerging as our strongest link in this business as we move towardsamplifying our consumer- centricity especially in the rural and semi-urban areas whereour channel partners will enable us to service client requirements in a timely mannerwith no fixed cost to the Company.
Powering to greater heights in institutional business
Even as we continue to move strategically towards a more consumer-oriented businessapproach we have not lost focus of our B2B or institutional business which remains asignificant driver of our remarkable performance year-on-year. Led by a strong positivityin business sentiment this business got a major fillip during FY17 especially in the EPCsegment where we are already firmly entrenched with a large and exciting pipeline ofprojects.
With new projects added to our EPC portfolio during the year under review we seeimmense potential for partnering India's progress through our presence in this segment aswe bring in greater efficiencies and connect more deeply with our clients. Addition ofmore than 300 people to handle our growing portfolio of EPC projects pan India hasequipped us even bettei to harness our strength in turnkey execution to take on biggerprojects going forward. On the radar are the EPC projects unde the rural/urbanelectrification schemes of the government alone with metro rail and the high-potentialsolar & wind projects where we see immense potential for future growth.
At the same time we have enhanced our capabilities in the EHV segment to equipourselves better to take on the growth opportunities opening up across the country. Withour new production line at Chopanki we are getting to cater to the demand for cables upto400 kV which I am confident will enlarge the platform for our growth multifold in theyears to come.
Expanding in the global arena
I am also happy to report exemplary performance in the international markets where weare continually building our reputation as a credible player with high-quality products
and services to meet the niche demands of clientele across industries. With revenues inexport almost doubling during FY17 we are looking at a huge fillip to this segment in thecoming year as our new offices move forward to augment our connect with clients in thegeographies of our presence.
Though the Middle East has traditionally been our most dominant market we are fastdiversifying our global presence to de-risk the business and currently also have presencein Singapore Australia and many nations of West and South Africa. As we strengthen ourpresence in these regions and explore new opportunities for expansion in other parts ofthe world I see our exports business further enhancing our ranking as a global marketleader in the cables and wires business.
The opportunity matrix as evident is huge indeed and your Company is well preparedto grab a large chunk of the growing pie. Moving forward we shall continue to invest infurther nurturing our people power and scaling-up our manufacturing & technologicalprowess to empower ourselves to meet the demand that we see opening up across sectorssegments and regions.
Our diversified portfolio of products has emerged as a key strength which we shallfocus even more on expanding in the years ahead to meet the niche needs of our growingclientele. Training and empowerment of people to take on the future opportunities is alsohigh on our agenda as we move responsibly forward on our strategic roadmap with anincreasing focus on CSR activities aimed at holistic value creation for all ourstakeholders and the community at large.
On a concluding note
On this positive note I would like to thank all stakeholders including our vendorscustomers bankers financial institutions Central and State government bodies dealersbusiness associates and employees for their continued trust and support. We are committedto enhancing the connect we have built with you over the years to continue to make ourbusiness a win-win proposition for all of us.