I start this message with a sincere gratitude to my fellow stakeholders who stood withus in difficult times like these where poor industry sentiment arose from the ban onsingle use plastic in certain states in India. These environmental issues resulted inpressure on our Company where the growth in this particular year has taken a hit.However our order book continues to be robust as our clients did not cancel the ordersonly put them on hold until a better clarity emerged and now revival has taken place.Internally we used this slowdown as an opportunity to go back to the drawing table andframed policies and products that will ensure transformational growth in the coming years.
While ups and downs are part of everyone's life and journey at Rajoo EngineersLimited every external challenge has only pushed us to strive harder and set strongergoals. I feel proud today to inform you Rajoo Engineers has collaborated with KohliIndustries to create a formidable alliance to build and maintain one of the most advancedand versatile Extrusion Coating and Lamination machines a fast emerging alternate tosolvent-less and solvent based for the producers of flexible packaging materials.
Having made a modest start in 1986 our Company has come a long way to become acompetitive player globally. Today at Rajoo Engineers we manufacture and sell variety ofplastic production and processing machinery which are highly regarded by users across theworld for a wide range of application and purpose. Our product lineup in the fieldincludes Monolayer Blown Film Lines Downward Extrusion Blown Film Lines Five -Seven-layer Co-Extruded Blown Film Lines and Thermoforming & PS Foam Vacuum FormingMachines and various extruding machines are world class in nature.
Today we also supply a diverse range of blown films which caters into lamination gradefilms liquid packaging films high dart FFS resin sacks films meat and cereal packagingfilms short shelf-life oil packaging films pharma and medical grade films andgeomembrane chemical/ soap packaging films.
Sensing the changing environment our Company has also focused on enhancing and furtherstrengthening our Research and Development team by improving our capabilities offeringsperformance and reliability of core products. We continue to contribute to nurtureofferings in new business fields based on core and differentiated technologies. We havealso engaged in various technology tie ups with renowned global brands in EuropeanCountries. Through these efforts we aim to focus on expanding and upgrading the coretechnologies while cultivating and growing our business. The effect of these actions willbe visible in the coming years and will help our Company to achieve the vision and goalsthat we have set for ourselves. We are moving towards big ticket size customized extrusionmachinery which will improve the efficiency and meet the more specific requirement of ourcustomers.
Moving to FY19 financials I would like to share that our Company recorded decline insales of16.41 % from Rs. 146.51cr in FY18 to Rs. 122.46cr in FY19.The sales were affectedas in the second half of the year resulting in some of the orders been put on hold byclients on account of plastic ban by the government resulting into poor market sentimentsthat reduced the order flow as compared to previous year. The EBIDTA also declined by32.66% to Rs 14.22 cr due to decrease in revenue and also higher cost of materialconsumption as we developed one Extrusion coating line machine and one Tarpaulin machine.The Company registered 35.91% decline in net profit from Rs. 11.89cr in FY18 to Rs. 7.62crin FY19.The plastic ban has impacted our numbers in current financial year but we arecontinuously working in order to satisfy the demand personalization in automated machinesalong with optimized flexibility in terms of precision and design for our machineries.
Our success so far has been driven by our most important asset our team! I would liketo take this opportunity to thank each member of the Rajoo family. I would also like tothank our Clients Creditors Banks Financial Institutions and other Stakeholderswithout whose patronage we could not have been where we are.
On my part I will continue to maintain our focus on increasing our operationalefficiencies enhance the product portfolio utilizing positive operating cash flows todrive volumes and strengthen our Balance Sheet. Our new journey would be here on to focustransformational growth thereby taking serious efforts in maximizing returns for all ourstakeholders.
R. N. Doshi
Chairman & Managing Director
The above vision is intrinsic to each facet of our operations. And we strive to realizethis objective with passion and fervor.
We will continue to achieve through constant innovation in technology and machinescordial and inspiring work environment for our employees who endeavor to convert ideasinto solutions for our customers with ethical business practices.
Our co-operation with the polymer industry and with internationally acclaimedrheologists and machine designers enables us to provide technology of the developednations too at developing countries.
Plastics a material of choice for over centuries has made deep inroads into all walksof human life be it food packaging housing clothing automobiles agriculture buildingand construction and a variety of other domains. We strive to contribute to thedevelopment of plastics through extrusion. We also strive to contribute to the sustainableuse of natural resources as well as energy savings and waste reduction. We aim atproviding excellence in sheet and blown film extrusion incorporating world classtechnology at affordable price levels.
Our obsession for innovation and enthusiasm for understanding of polymers aresignificant elements which encourage us to achieve our goals and put us above the rest.
"Excellence in Extrusion" is our Company's maxim and is an expression of ourcorporate vision and culture which guides us in all that we do.