"Today I am pleased to inform you that your company is one of the fast-growingagrochemicals company with the vision of becoming a major Indian player in the CRAMssegment and be a preferred partner for manufacturing high-tech performancechemicals."
The world during FY 2021 was anything but normal. It was firmly in the grip of thecoronavirus pandemic which placed great demand on everyone. People across the worldsuffered unprecedented miseries lives were lost. The economy and stock markets slumpedlivelihoods were destroyed.
For Punjab Chemicals too it was a challenging year. Yet we came through the pandemicin good shape and laid strong foundation for future growth.
The Management and employees worked hard to handle the adverse conditions and also atthe same time ensured to bring new products to market for our customers. We areaggressively moving forward on transformation journey and are committed to take thecompany to next level. Today we stand as a fully integrated CRAMS player with strongcapabilities across the value chain. We provide end-to-end high- value CRAMS offeringsright from process research and development and commercial manufacturing.
We are proud to have become the preferred outsourcing partner across severalcontinents and to service a diverse customer base from all the key advanced marketsincluding US Europe and Asia.
Looking back past year has much we can be proud of. We managed to keep the companyrunning successfully despite this major crisis and continued to be a vital and performingsupply chain source to our partner clients around the world. We kept our people at thecore of our strategy and succeeded in protecting our workforce and minimizing the numberof COVID-19 infections in the company.
Your company has managed to deliver stellar performance in current financial year20202021. I've been very impressed by the commitment shown by our employees in making allthis possible. And I would like to sincerely thank them for hard work and dedication onyour behalf. I am happy and proud to share that we achieved the operational targets forFY2021 - proving once again how robust our businesses are. I am delighted to inform youthat despite COVID -19's disruptions your Company exhibited financial performance with theconsolidated growth of 23% Year-on-Year (YoY) to INR 6782 million in the currentfinancial year. EBIDTA also soared by 75% at INR 973 million during the year. PAT for theyear was INR 491 million. Your Company continues to deliver a strong return ratio withReturn on Equity of 34% and Return on Capital Employed of 32% in the current financialyear. The Board of Directors have recommended the dividend of 20% (2.00 per equity share)for the financial year 2020-2021.
Despite adverse global economic environment Agrochemicals sector continued to showrobust demand and provided opportunity for further growth. Our strategic initiatives andsuccessful strides in the CRAMS space positioned us to exploit the opportunity. During theyear we generated significant new businesses from clients in Asia Pacific and Europeanregions. We are now proud partner with most of large companies in this sector and continueto generate fresh business interest. We are confident of expanding these partnershipsexponentially in coming years.
Newly rebuilt plant at Derabassi became fully operational during the year. We also sawfresh investment in new products and all projects are progressing well. This enabled theCompany to take on larger orders from both existing and new clients. For the financialyear 2020-2021 the capacity utilisation at our Derabassi Lalru and Pune plants was 80%73% and more than 95% respectively.
Emerging more resilient from the crisis
Our strategy of entering into long term contracts and focus on product developmentalong with R & D is enduring. We continually transform our business and embrace changeto create more value for our clients with incredibly talented people and we are on muchstronger footing now than we entered fiscal 2021. Today more than ever we are blessedwith a strong product portfolio; and global market reach; ongoing investments in newproducts and capacities backed by a prudent capital allocation; a robust balance sheetwith very low leveraged debt-equity.
Throughout our history the people of Punjab Chemicals have embraced change. Today isno different. I want to thank all our people for their incredible dedication perseveranceand commitment both in fiscal 2021 and as we face our new reality. I also want to thankall our shareholders for their continued trust and support. I see PCCPL today atthreshold to unleash new growth trajectory and we are committed to ensure that this growthmomentum is sustained.
Enlivening Science for Agrochemicals
Food security will continue to be key global focus for growing population across theworld. This fact also provides us another form of resilience from being part of theevergreen agriculture industry which must play the lead role in increasing the world'sfood production by around 70% to support the population by 2050. Agrochemicals willcontinue to have increased importance and new products and solutions are essential forfuture growth. In our growth journey we will continue to strive to transform agriculturethrough essential products and technologies that play a vital role in enabling the foodchain to feed the world safely. The company will focus on building strong R & Dcapabilities strengthen process further for safe reliable and efficient operations makeyour company as employer of choice by providing learning and growth environment to peopleand transparent dealing with our customers.
In difficult times like these it's more essential than ever before that society looksforward and addresses future issues. And that's what we're doing at Punjab Chemicals.We're working on innovative products for agriculture that help to ensure an adequate foodsupply for the growing world population without placing excessive demands on the planetand its ecosystems. As we move along FY 2022 there are strong expectations of recovery inthe Indian and global economies. I am thankful to our customers and our shareholders fortheir continued support and confidence in our journey towards becoming one of the mosttrusted specialty chemicals and partner of choice CRAMS company out of India. On behalf ofthe board I would like to thank you for all your unwavering support trust and perennialbelief in our capabilities and competencies.
With best wishes
Mukesh D Patel