I am pleased to report that our Company has continued to deliver steady performanceduring the year FY18-19. We have achieved remarkable revenue growth on the back of oursignificant capacity additions done over the past few years.
Global economy growth softened in 2018 led by increasing trade tension between majoreconomies weakened manufacturing activities and slowed consumer spending resulting inreduced investments across the globe. Going forward strong demand recovery and fiscalimpetus across economies are supposed to lead the revival of the global economy.
The consumption of steel has been considered an important indicator to measure theeconomic development of a country. Steel forms a key ingredient in the growth oftraditional sectors such as construction housing and ground transportation. Theincreasing focus of government towards agriculture as well as housing will be the majordemand driver for the Indian pipe industry in the coming future. The demand will befurther supported by rapid urbanization rising construction and building ofinfrastructure.
In the wake of the expected exponential growth of the pipe industry stringent qualitycontrols international standard certifications and technological advancements are theonly tools with which a Company can outwit the competitors in the industry. Also with theevolution of hollow section tubes the pipe industry observed a major turnaround and yourCompany has also benefitted from this opportunity due to its increased usage in manyindustries. Rama steel plays a pioneering role in the Indian steel industry withstate-of-the-art steel tubes and pipes manufacturing facilities multi-product portfoliointernational presence continuous modernization and upgradation of plants and improvingenergy efficiency. Your Company is well-equipped and well-positioned to capitaliseopportunities gained from the economic growth in India. The vital and continuous the ortof your Company to emerge as a pioneer in the steel tube industry has been possible bycapitalizing its enhanced quality and technological advancement abilities. Your Company isfully committed to focus on technology advancements and R&D to provide highvalue-added superior and customised products to its reputed and strong customer base.Your Company is constantly partnering with the Government for the country's socialupliftment by actively participating in rural electri cation projects.
During FY18-19 total revenue recorded an astonishing growth of 31% reaching to 506.79Crores as compared to 386.81 Crores achieved in FY17-18. The growth was primarily aided bystable steel prices higher capacity utilisation and increased output from new capacityadditions made during the last year. Your Company constantly endeavours to expand andupgrade manufacturing capacity for ensuring higher sustainable growth. During the year weinvested 0.93 Crores for upgrading capacity in Mumbai (Khopoli) plant in Maharashtra whichis under work in progress and further we will invest approximately 16 Crores in FY 2019-20which would lead to higher production and ultimately increase your Company's revenue baseand pro tability in FY 2019-20. In FY18-19 the capacity utilization has improved to88054.47 MTPA as against 79175.93 MTPA in the previous year. During the previous yearyour Company has faced sti competition due to the same pro tability has impacted. Howeverthe solar plant in Khopoli helped in reducing the energy costs to some extent therebypreventing the further erosion in pro t. Consolidated Pro t after Tax for the year underreview stood at 8.55 Crores as compared to 12.73 Crores in the previous year.
Your Company has already introduced one of India's largest solar energy projects withan installed capacity of 750KW in the previous year. The Company is further planning toset up solar power plants each in Andhra Pradesh and Uttar Pradesh which will help toreduce power cost to a great extent. To cater to the ever-increasing market demand in theSouthern region the Company has set up a new manufacturing plant in Andhra Pradesh withan installed capacity of 36000 MT per annum. This has also contributed to higher revenuein FY18-19 due to an increase in product output. Along with the renewed and enhancedcapacity the total installed capacity stood at 168000 MT in FY18-19. Your Company has awide product portfolio and is looking for further upgrading its installed capacity at itsKhopoli
Mumbai plant. These expansions will further enhance our efficiencies and will generatesuperior returns at lower costs. Going forward the Company is also planning to add moreSKUs to the ectively carry out its product distribution across the country. That move willnot only build a higher customer base but also enhance the top line of your Company. Withhigher standards set for product quality and constantly upgrading it with the latesttechnology your Company has become the most preferred choice for all its customers.Sustainable growth has always been an integral part of our growth journey and we willcontinue to explore strategic opportunities both in domestic and international markets.Constant Value addition and commitment towards achieving excellence are the two broadpillars on which your Company has been creating value for its stakeholders. To embark on ajourney of success one needs the tools of preparedness foresight and strategy. Realizingsuch responsibility on our shoulders we endeavour to be one of the most competitivecompany in the industry with an emphasis on efficiency in business operations as well asreliability for our customers. We are con dent of achieving higher growth in the future. Iwould like to extend my gratitude to every member of our team for their sustaineduntiring the orts in making Rama Steel a leading steel Company in the country as well as aprominent name in the world. I would also like to thank all our stakeholders boardbankers employees and the government for their support and assistance provided throughoutour journey. I solicit your continued cooperation.
Naresh Kumar Bansal
Chairman & Managing Director