FY 2020-21 was an unprecedented & challenging year for the entire World & nobody on earth would have anticipated such a prolonged & devastating effect of COVID19. Even now one can't make any predictions that by when our mother earth shall be freefrom the pandemic. In these extremely difficult times I pray for the health and safety ofall our shareholders and their families and extend my heartiest gratitude to the frontlineand healthcare workers who have been the gallant warriors during this pandemic.
As we present the 38th Annual Report of RACL Geartech Limited for the financial year2020-21
we all are worried for third wave of the Covid-19 crisis. I would request all ourstakeholders to not let your guards down and take complete precautions and follow Covidappropriate behaviour to protect yourself and the ones around you and please getvaccinated as soon as possible.
I would also like to thank our esteem shareholders for your confidence & trustposed upon us during these testing times which remained an inspiration for us to stand upto the challenge with grit and determination and a motivation to perform consistently formaintaining growth in revenue and profits.
FY21 wasn't anything that any of us would have ever imagined or planned for anycontingency actions. Nevertheless businesses and individuals across the globe stood uppretty fast & learnt to weather the storm and re-draw the ways of life. As we all areaware COVID-19 pandemic raged across the world in beginning of FY 2020. Our Governmenttook a strong preventive action & declared a country wide strict lock down whichcoincided with beginning of fiscal year 2021. The announcement was without any advancewarning due to which the country witnessed turmoil and chaos resulting into mass exodusof the migrant population from the bigger cities plummeting demand for products andservices loss of lives and livelihood.
It was an extremely tough year for us as well and a look at the GDP numbers whichgives shivers & reflects the magnitude of the challenges we were facing. Each segmentof the industry bore the brunt of the pandemic. The automotive industry was worst hit& witnessed a whopping decline in its Q1 numbers.
Nevertheless I am proud to state that despite all the hardships we were successfullyable to manage the situation. Q1 did witness a dip in sales figures and profits but wewere back in control in the subsequent quarters. We undertook massive management actionstowards reducing costs optimising resources and working capital requirements. Our effortswere very fruitful duly supported by our employees & supply chain partners. While westrictly adhered to all Government protocols on COVID management we ensured that suppliesto customers continued despite of strict restrictions on operations. It was not only atesting time but also a learning time for us. It taught us to work under unusualcircumstances and yet achieve our targets. It has taught us the importance of worktogether more than ever before and taking care of each other. Today I am proud of whatyour company has achieved and learnt during this truly uncommon year. The resilience andthe agility with which response was initiated to safeguard employees and partners waspraiseworthy. We have learnt to treat challenges as opportunities.
Our Customers and Suppliers have been a big support in the times of crisis. We haveefficiently adapted to the requirements of the changing business environment. During theyear we undertook people-centric nitiatives to ensure the safety of our entire team andslowly but steadily resumed production in all our manufacturing facilities maintainingthe guidelines set by the Government.
In FY 2020-21 I am happy to inform that your Company delivered a resilient performancedespite a challenging operating environment. On a comparable basis your company witnesseda small dip in the Total Revenue amounting to ' 207.73 Crores for the financial year ended31st March 2021 as compared to ' 212.84 Crores during the same period in the previousyear. However the Profit before Tax grew to '30.12 Crore as compared to ' 21.90 Crore inthe previous year while Net profit also grew considerably by 45.78% to ' 23.85 Croresfrom ' 16.36 Crores in FY 2019-20.
Despite the rough year these realities give us the confidence that our organisationand its team is ready to take on any challenge that may occur over the coming years. Thehigh point for RACL during this financial year was the historically high monthly salesfigures during the month of November and December.
We all are aware that Pandemic has affected economy throughout the world and eachsector of the economy has hit in one form or other. Automotive sector has also beenaffected substantially. We also know that it is not over yet and shall continue to impactus for some time. However with the advent of vaccines and rigorous vaccinations activityacross the globe mankind shall be able to gain victory over the virus at some stage.Nevertheless we shall have to adopt a cautious approach towards managing any futurecrisis that may come our way. Effective utilisation of resources Human resourcemanagement innovation and agility will help us to make our way out of unprecedentedtimes. We will have to increase operational efficiencies everywhere. We will have toeliminate all sorts of wastages & avoidable costs which shall be achieved with thecollective efforts of the RACL Family.
The Company is also working with full determination for realisation of our CorporateSocial Responsibility goals and endures to enable the ones in need. We aim to provideopportunities for the young to prepare themselves into future citizens who are ablecontribute to growth of country. Our ongoing CSR projects focus on the provision ofeducational facilities to the marginalized and under privileged children in our community.Apart from that skill development women empowerment support to the deprived anddestitute are the arenas where we are ceaselessly working to bring about constructivechange.
COVID 19 crisis has generated new threats but has also created new learnings to stayafloat even in crisis & has opened up a plethora of new opportunities & ways to dobusiness. Our efforts in aligning with new standard of life have yielded hearteningbusiness returns. I am confident that we shall be able to sustain our initial successstory and we shall be able to conquer more interesting opportunities over the comingyears. I am optimistic that even in the worst case scenarios we will be able to workdiligently in our efforts towards turning headwinds into tailwinds taking us a few notcheshigher.
I wish to seek your support and best wishes for our future endeavours and pray forbetter and healthier times to come.
At the end I take the opportunity to thank all our stakeholders bankers supply chainpartners Government of India State Government of Uttar Pradesh and all our employees forextending their need based support throughout this crisis period of COVID -19. And I amsure we shall strive back with sustainable growth for all in the times to come.
|GURSHARAN SINGH |
|CHAIRMAN & MANAGING DIRECTOR |