I have great pleasure in welcoming you to the 36th Annual General Meeting of yourCompany. At first I would like to thank our valued shareholders for your faith andunstinted support as the pre-eminent position of RACL where it stands today with gloryis an outcome of the invaluable trust and confidence of our stake holders.
My fellow shareholders I would like to congratulate Hon'ble Prime Minister ShriNarendra Modi whose vision and commitment to usher in a New and vibrating India hasreverberated in the hearts and minds of millions of fellow citizens who reposed theirfaith in his capable leadership.
Our Hon'ble Prime Minister has charted out a vision to Make India a US $ 5 TrillionEconomy by 2024. If we see the track record of Economic Growth of our country in past fewyears the target set up by Hon'ble Prime Minister seems very well within capabilities ofour country. Even though there is a slowdown in certain segments of Indian Economy but Iam sure it is a temporary phase and shall go off sooner than later. I foresee that neweropportunities for economic growth are set to increase manifold in immediate futurebecause of various structural reforms being undertaken by the Government. India has astable political situation as on now and Government is working very seriously onstrengthening the foundations of a strong but well regulated business scenario for alltimes to come. Various long term measures are undertaken by the Government for improvingquality of life of all our citizens and reducing the inequality of income particularly forlower strata of the society.
I fully endorse the various initiatives taken by the Government and on behalf of theBoard I would like to once again re-pledge RACL's fullest contribution to the Governmentin its endeavours for building a strong India.
Your Company delivered a resilient performance despite a challenging operatingenvironment. On a comparable basis your company has reported a Total Income of Rs. 190.96Crores for the financial year ended March 31 2019 as compared to Rs. 140.11 Crores duringthe same period in the previous year representing a growth of 36.29%. Profit before Taxat Rs. 17.34 Crores increased by 100.69 % from Rs. 8.64 crores while Net profit grew by30.60% to Rs. 9.43 Crores from Rs. 7.22 Crores in FY 2017-18.
Striding towards our Growth Plan
We will continue to invest in enhancing international competitiveness in each businesssegment not only to reinforce the pole position achieved in several segments but alsoto speedily attain leadership in the new businesses. While this will undoubtedly entailupfront investments and gestation costs in the short term it will provide a competitiveadvantage over a medium to long term period of time.
A multi-pronged approach is being pursued to create growing value for all stakeholders.
Let me now turn to critical growth drivers which are poised to energise the future ofyour businesses namely the increasing role of Innovation R&D and world classtechnology.
Company is gearing up for providing drive train solutions to the future of mobilityi.e. Electrical vehicles (EVs). Company has already invested substantial capitalexpenditure in the recent past and is fully ready as on today to cater to the highprecision drive train components for E-mobility solutions.
Building Sustainable Work Culture
Your Company is investing in building state-of-the-art manufacturing infrastructureacross the plant. Our strong corporate culture is fundamental to our business success.Board of Directors of the company is playing a very constructive and pivotal role inre-defining the work environment of the company by promoting values-based code of conduct.
Last but not the least I would like to turn to one of the most valuable resources onwhich rests the foundations of all our ambitions and aspirations - your Company'sdedicated pool of talent.
RACL is creating a strong work force by continually training them and nurturing theirdreams towards creating a healthy and happy life style.
Corporate Social Responsibility (CSR) Focus
RACL Geartech Limited has always believed in sustainable and responsible growth led byits values. CSR efforts of the company endeavour to support the under privileged rural andurban communities in the country at large with a focus on sections of the vulnerable andmarginalized communities that live in close proximity to its manufacturing facilities.
The scale scope diversity and depth of your Company's operations have increasedbusiness over the years. I have had the privilege to participate and have a ringside viewof the remarkable transformational voyage traversed across time.
It will also be your Company's untiring endeavour to lead by example as an Enterpriseof Tomorrow by pursuing growth strategies that will be responsibly competitivesustainable and inclusive.
CHAIRMAN & MANAGING DIRECTOR