It gives me an immense pleasure to report that FY18 was truly a remarkable year foryour company. In FY18 company has put in place several building blocks and started alasting transformational journey for the company. In last couple of years India hasundergone several structural reforms and with government's focus towards a rule-basedpolicy framework the business environment is changing for the better. As a re ection ofthe cumulative actions India's rank jumped 30 spots on the World Bank's Ease of DoingBusiness rankings. The manufacturing sector in India is looking up with Make inIndia initiative and with government's special thrust on Electronic manufacturingservices (EMS) large growth opportunities are emerging for your company in this newenvironment.
DOMESTIC ECONOMIC DEVELOPMENTS
Considering the pace of reforms by the Central government and focused policy decisionto boost the domestic manufacturing activities India continues to be one of the fastestgrowing country with 6.6% GDP growth in FY18. Historic indirect tax reform GST -One Nation One Tax coupled with ease of doing business has improved thebusiness scenario and simplified tax compliance. Improvement in India's economicfundamentals has accelerated during the year due to the combined impact of indirect taxand other reforms and government focus on manufacturing and structural growth.
With the rapid urbanization and change of lifestyle India is poised to become world'sfastest growing electronic market and is expected to become one of the largest consumerdurables markets in the world in near future. This growth is supported by severalgovernment initiatives massive electrification growing online sales and changinglifestyle pattern. Much of this growth is likely to be contributed by Appliance andConsumer Electronics market (ACE) segment. Make in India initiative ofgovernment of India is attracting huge investment in the EMS space. Both domestic andInternational players are putting up capacities and Infrastructure to capture the emerginggrowth opportunities in India. Also improving technology and cost efficiencies remain thekey driver for the industry development.
PERFORMANCE OVERVIEW AND THE WAY AHEAD
During the year under review your Company recorded a growth of 9.5% over the last yearto achieve a top line of `4047.3 million in FY18. This coupled with a decent jump of90bps in operating margins led to 25.3% growth in operating profits. The Net profit grewover two-fold and stood at `74.9 million driven by efficient working capital management.To fuel the future growth promoters have further infused `226.3 million in the Company asinterest free loan during the year. We are well on our way to become an end to endsolution provider from a component and sub assembly manufacturer for our clients. Toaddress the end-to-end requirements of our clients we have taken up various strategicinitiatives and we are investing in capacity enhancement and also building newcapabilities. We believe that as all these synergies play out your company will be ableto capture large upcoming growth opportunities and take the organisation to the new level.
During the year under review your Company added new capacity of PU paint shop startedUF thermoset toilet seat facility with the technology from Hoti (Xiamen) Plumbing Inc.China. Tool Room facility for making moulds has been further ramped up during the year andcompany commercially launched Washing machine under ODM model.
At PGEL we continue to drive our business with focused strategic initiatives. Yourcompany is making judicious investments in capacities and capabilities getting into thestrategic tie ups with reputed leading players in key segments and focusing on improvingoperational efficiencies to achieve higher scale and operating margins. The Company isfurther exploring opportunities under ODM model in products segments like LED TVs and Airconditioner. We finished FY18 on a high note and now we are preparing ourselves tosignificantly scale our growth in light of the attractive market opportunities.
Going ahead the Company's strategies to become an end to end solution solutionsprovider will lead to higher profitability and better growth rates. With the strongcustomer engagement positive market sentiment healthy balance sheet and diversifiedproduct portfolio the Company can now cater to customers across segments and aspires tobecome key player in EMS space in India. Better capital utilization and improvingoperating margins due to value added products will lead to enhanced margins and returnratios.
A GRATITUDE TO OUR STAKEHOLDERS
As we move towards the most exciting time in our Company's history we are grateful forthe support of our stakeholders including our vendors customers bankers financialinstitutions Central and State government bodies dealers business associates andemployees. We aim to earn and retain your continued trust every day. We look forward tosharing our successes with you as we realise this Company's great potential and achievethe goals we have set for ourselves.