I would like to begin this by sincere thanks to all our stakeholders who have stoodwith us in these difficult and trying times. The still unchecked and uncontrollableCOVID-19 calamity combined with the already recessive global economy resulted in minimumgrowth across the world in this particular year.
A crisis in the form of microscopic pathogen has rapidly spread around the world in ablink of an eye. In March last year with Covid-19 contagion becoming a full-blownpandemic governments across the world including India opted for lockdown which continuedtill first half of 2020. This Great Lockdown as the IMF calls it has tipped the globaleconomy into recession in 2020 on a scale not witnessed before.
Due to herculean efforts undertaken by doctors and researchers around the world avaccine with high levels of efficacy is available to us. However implementation of thisvaccine in a phased manner will further postpone our hopes of a rapid economic bounce-backwhich was expected due to this great scientific breakthrough. However due to lax behaviourand lack of awareness coupled with ignorance this virus has shown its ugly head again inform of second wave. The distress faced by the entire world has forced all of us to take astep back and reevaluate our way of doing business. In fact we have used this slowdown asan opportunity to step back and frame new policies and develop new products that willensure sustainable progress in the coming years. Our collaborations with various companiesworldwide have helped us to maintain a strong foothold in these unnerving times.
As you are all aware the past financial year brought significant headwinds for all theindustries in the form of the COVID-19 pandemic. Even now the impact of the second wavehas impaired across sectors hampering logistics supply chains as well as consumersentiments however despite that our Company has sustained through such times. During thefirst wave of lockdown our Company immediately adopted the work from home policy for thesenior Management team and sales team from very next day and followed by that for otherwhite-collar employees.
Having years of experience in automation and with the adoption of Industry 4.0 wecould start installation and commissioning of our giant machines through remote supportand also continued the post sales support. We came up with the strong strategies forinternational market new product development and standardization of existing productswhich helped us to smoothly navigate during such uncertain times.
At Rajoo we believe that every adversity provides an opportunity to grow and succeed.With strong vision backed by passion for research and development and commendableteamwork we introduced two products which were need of the hour during the pandemic -Melt Blown Fabric Making Machine and N95 Mask Making Machine both import susbstitutionproducts. The main uses of melt-blown non-woven fabric are filtration sorbents hygieneproducts apparels and drug delivery. We are the first Company in India to make a die formaking melt-blown fabric.Our design team successfully developed both the machines in ashort span of a month. Their tireless efforts and determination to take our Company aheadare truly commendable and worth mentioning. This helped us to navigate through the tougheconomic conditions prevailing then. Our products assume special significance for India inthe wake of severe disruptions caused by this pandemic in Indian and global economy. Goodorder booking of Blown-Film Lines not only from the domestic market but also from theexport market resulted in a win-win situation for all our stakeholders.
Having made a modest start in 1986 our Company has come a long a way and is now aglobal player. Being a technology-driven company product innovation world class qualitystate-of-the-art workmanship energy efficient and high level of sophistication andautomation have become the hallmark of Rajoo products during all these years therebypositioning our product on a global platform competing with established world leaders.Today at Rajoo Engineers we manufacture and sell variety of plastic processing machineswhich are highly regarded by users across the world for a wide range of applications.
With representation in many countries across the world and customers in over 70countries our exports have multiplied since our debut in the international market in1990. Our product lineup in the field includes Monolayer Blown Film Lines DownwardExtrusion Blown Film Lines Seven-layer Upward Co-Extruded Blown Film Lines ExtrusionCoating and Laminating Lines and Thermoforming & PS Foam Vacuum Forming Machines andvarious extruding machines. Today we also supply a diverse range of blown films and sheetextrusion which caters into lamination grade films liquid packaging films high dart FFSresin sacks films meat and cereal packaging films short shelf-life oil packaging filmspharma and medical grade films and geomembrane chemical/ soap packaging films.
Our brand reliability and position in the global market with a number of strongalliances in the industry such as Kohli Industries from India MEAF Machines fromNetherland and Bausano & Figli Italy that we have with us we are confident that ourCompany is ready to reach higher and newer heights. It is an industry practice to buildmachines with client's specifications to garner competitive advantage however at Rajoowe have always been a pioneer of change and innovation by identifying just the righttechnology and its mix. As we add value to client's business we are being appreciated bystalwarts in the business of offering appropriate technology consistently tohelp customer business rather than following the traditional approach. This reinforcesstamp of 'Excellence in Extrusion'.
Coming to the ban on single use plastics consumers and the Government do realize thatthere is no substitute to certain plastic products. Plastics without doubt is a miraclecommodity that has uses ranging from increasing shelf life of eatables to medicalequipment. . Proactively as a positive sign the Central Government thereafterconstituted a committee of leading experts to study steps being taken world over and toadvice Government to define products to be termed as single use plastics so that a uniformcountry-wide policy can be framed. In line with this the Centre has proposed a ban onsingle use plastic in two phases beginning January 1 2022 and issued a draft notificationgiving time lines of the staggered plan to make India single-use plastic-free by nextyear. The drafts are still in initial phases of public consideration.
Moving to FY21 financials I would like to share that our Company achieved net revenueof Rs. 152.25 crore in FY21 as against Rs. 93.55 crore in FY20 representing a YoYincrease of 62.75%. This increase in sales has been primarily on account of higher demandfor plastic packaging products due to change in consumer sentiments towards packedproducts leading to increased demand for our machines. Demand drastically changed in thefood business as the pandemic shut down all the restaurants and food services. Consumersmoved to heavy grocery purchase due to which packaging demand increased demand rosesharply for not only packaging of groceries but also for the healthcare productse-commerce transportation. This resulted into higher production and sales volume offlexible packaging film followed by heavy expansion by existing players adding newproduction capacities.
Continued orders from the market gave us healthy order book which has improved ourcash flow. EBITDA (excluding Other Income) was at Rs. 18.74 crore in FY21 as against Rs.7.32 crore in FY20 increase of 156.15 % YoY mainly on account of increase in sales andoperational efficiencies kicking in decrease in other expenses despite the effect of thepandemic across areas of increased ocean freight increase in warranty provisions andcontractual manpower costs. PAT was Rs. 10.41 crore in FY21 compared to Rs. 1.47 crore inFY20 YoY increase of 609.22% due to higher revenues and better utilization of workingcapital has offset rise in raw material and other expenses.
In line with our strategy we continue to expand our global footprint with high focuson market penetration and sustain investments in research & development to supportprogress. We continually strive to identify new avenues of growth and effectiveutilization of existing resources.
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 Stakeholders. Theirfaith in us and support extended makes it easier for us to strive and excel.
On my part I will continue to maintain our focus on increasing our operationalefficiencies utilizing positive operating cash flows to drive volumes and strengthen ourBalance Sheet. This new journey post COVID 19 times will require extra perseveranceefforts and your ever -increasing support to sail our Company through tough waters.
R. N. Doshi Chairman