II hope you and your family members are keeping safe and healthy.
As the Chairman of the Company I feel privileged to communicate withyou through this 37th Annual Report of the Company.
Friends we are going through an unprecedented difficult time broughtupon us by this coronavirus pandemic which has now affected the entire globe. Thispandemic has changed our perspective towards life. It has also compelled us tore-strategize our businesses. As the human race has survived many catastrophes in thepast we are sure that we will survive this crisis also. Hope you all will find enoughstrength and immunity to fend off this short term adversity. This crisis created manychallenges; but at the same time it also provided many opportunities. Though it testedhuman endurances it taught us adaptability and flexibility also. It is up to us what wechoose to take from it.
Despite the fact that this pandemic was unpredictable and no one wasever prepared for it the Company however has managed to handle it to a great extent. Thepandemic and consequent lockdowns and restrictions imposed on various industrial andeconomic activities have posed several challenges to the Company. Initially all the unitsof the Company were to be closed due to nationwide shut down. However later all theplants and units resumed operations gradually and now on their way to normalcy. This shutdown of economic activities has hampered the business of the Company in the currentfiscal. However the management is confident to get over the situation very soon.
As far as the global economy and Indian economy are concerned 2019-20was not among the best of the years. The Indian auto industry was also not immune to it.Despite the same the Company did reasonably well during 2019-20. The Company ended theyear with a turnover of Rs. 488 Cr. compared to Rs. 1004 Cr. for the previous year; thedecline in turnover was mainly due to exit from 2W business. However PBT increased fromRs. 5.15 Crores in 2018-19 (0.51%) to Rs. 6.95 Cr. in 2019-20 (1.42%) despite the lowturnover. Railway business did well during the year and grew around 19%. However due toeconomic slowdown particularly in auto industry CV and PC businesses had low turnovers.However the management is still optimistic and confident to achieve doubling the turnoverof these businesses in next 2-3 years. I am pleased to share that our two new plants inUttar Pradesh to manufacture long member and railway parts/components are in advance stageof commissioning. Though they both were expected to be operational during the currentyear due to Covid crisis the start of operation got delayed a bit. However themanagement is confident that both the plants would be operational before end of thisfiscal. Once operational these plants would add volume and profitability to the overallbusiness of the Company.
Keeping pace with the fast evolving technology has been the major focusarea of the management. Company has its own in-house R&D Centers which areeffortlessly working on developing new products for our customers. The management isstriving hard to develop new products for its customers. Hopefully we would be able toadd new product lines to our business soon.
Friends tough time never lasts but tough men do. The management isconfident that with your support we will recover from this short term situation.Government is doing whatever it could to contain this pandemic situation. Health expertsare working on vaccines which will be available for general public very soon. Hopefullythe situation will be normal in few months. I hope the economy will gain its speed backby early next year and attain the level of previous year. With the operation of two newplants the Company is also expected to return to its growth path. So let's keep ourfingers crossed.
Last but not the least I take this opportunity to thank all thecustomers vendors and shareholders for their unstinted support to the Company. Wish allthe shareholders and other stakeholders a very healthy and safe festive seasons ahead.