LETTER TO SHAREHOLDERS
These are extremely difficult uncertain times. In such times I prayfor the safety of all our shareholder members and their families. After two waves ofCOVID-19 we are living in an extremely challenging environment. I hope that you and yourfamily members are taking all necessary precautions adhering to the Government'sguidelines and have taken the vaccination as these are the only ways we can protectourselves against the Coronavirus.
We faced a tough Financial Year 2020-21 the year of the newnormal' which brought in disruption for individuals communities organizations andcountries. During a large part of the year we have been impacted by the uncertaintiesinduced by the lockdowns forcing each one of us to find new ways of working. Thisseverely impacted the economy in the first quarter of the fiscal year posing challengesto our industry as well. As you are aware we too felt the impact in our first quarter aswe saw our volumes go down by 43.5% and Net Revenue from Operations fall by 34.4% ascompared to the previous year.
I believe that such challenges also bring in its wake unseenopportunities. We have been on a Premiumisation journey to shore up our profitabilitymargins and these abnormal times saw us navigating through this tough situation and alsopreparing to be future ready. We focussed on investing behind our brands even as weoptimized cost structure to sustain our margins. It is with satisfaction that I note thatthese not only helped strengthen our financial position but also enhanced our marketshare. While we managed to close FY2021 at the same level as the previous fiscal'sNet Revenues from Operations at `2418 crore we expanded our EBITDA margins by nearly 170basis point to close the year with `408 crore up 11% as compared to the previous year.
During the whole year employee health safety and wellness was our toppriority. In the pandemic where we saw pay cuts and job loss across industries it iswith pride to mention that not a single member of our employee community was asked toleave nor did we undertake any salaries cuts.
Despite the uncertainties ahead I continue to remain bullish about theeconomy and our business model as we experienced improving trends during the second halfof the year and have seen the economy and industry normalise. We have emerged strongerpost the first two waves and this resilience will help us in the future as well. I amconfident of our people and our capability to deliver the best premium products to ourcustomers. We are ready to take on any challenges.
I take this opportunity to thank each one of you for continuing tobelieve in our vision and execution as we step into the next phase of our strategic growthjourney. I would also like to acknowledge the contribution of our partners and customersfor reposing faith in Radico Khaitan and actively working for our combined success.