I am pleased to write to you about the performance of RenaissanceGlobal Limited for the financial year 2020-21. The year gone by was one of the mostchallenging and difficult impacting our lives in unforeseen ways. Much like most otherindustries there were ripples in the global jewellery market. We began the financial yearwith production disruptions amid India's nationwide lockdown coupled with subdued demandfor jewellery in the major markets we operate in.
Our first and foremost priority during this tough year has been toensure the health and well-being of all our employees by setting up work-from-home infra-structure and ensuring safe sanitized work places at our manufacturing plants and varioussales locations across the world. To that end I take pride in informing you that ourcompany has successfully conducted a vaccination drive in June 2021 to vaccinate all ouremployees and their family members at our plants and office premises in India.
I would also like to pay our respects to the countless frontlinewarriors owing to whose selfless service the sOCIety and the community continues tobreathe. We shall forever remain indebted to them.
For our Company the business situation started improving towards theend of the first quarter of the financial year with relaxations allowing us to begin ourmanufacturing operations and some pent-up demand for jewellery starting to come throughafter normalization of COVID-19 cases in the Western markets. Jewellery demand continuedto improve as we moved into Quarter 3 and 4 of the financial year with the positive impactof vaccinations and stimulus programs in these Western markets which account for amajority of our sales.
A positive highlight for our Company has been the promising growth ofour branded Direct to Consumer business which was launched towards the end of FY 20 andhas been able to capitalize on the exponential growth of E-Commerce due to a reduction infootfalls in brick and mortar retailers as shoppers avoided stepping out adhering tolockdowns and sOCIal distancing norms.
This along with our continued focus on our branded B2B business leadsme to strongly believe that our Company is on the cusp of a very exciting journey ofmargin accretive business growth over the next few years.
In the financial year 2020-21 our revenues from operations declined toRs.2031 crores from Rs. 2502 crores in the last year mainly owing to lockdowns imposedaround the world on account of the Covid-19 pandemic and dampened customer sentiments. Tominimize the impact our company worked on rationalizing costs while maintaining aplatform for growth when the pandemic subsides. We believe with the strong value driversthat we have putinplaceinourbusiness;our company is well positioned for growth as thepandemic is behind us.
The reduced revenue resulted in a declineof50%in our Profit After Taxfrom Rs. 92.2croresintheprevious year to Rs. 46.3 crores in this financial year. Ourcontinued focus on Work Capital Management resulted in a net cash flow from operatingactivities of Rs.116.4 crores in the financial year under consideration.
During the financial year we have been able to achieve a netdebttoequityratioof0.29andweareoncourse towards our goal of becoming Net Debt zero overthe next three years. With increasing confidence in our financial position our companydeclared a dividend of Rs. 4.5pershare during the financial year and has put in place arobust policy for payout to our shareholders.
Our return on equity for FY21 stood at 6% owing to the impact of thepandemic. We continue to strive towards achieving a return on equity upwards of 15%
We as a Company have always challenged ourselves to constantly evolveour business model to achieve a formidable competitive advantage in the market. A pillarof this endeavor has been moving higher in the value chain to significantly improve ourmargin mix engage with our end consumer directly and create a strong moat around ourbusiness.
While our business-to-business(B2B)generic jewellery business withglobal retailers is well established and cash generating we now have a bouguet oflicensed brands with very high brand recognition under our portfolio which includesEnchanted Disney Fine Jewelry Star Wars Fine Jewelry and Hallmark Diamonds. We areaggressively pursuing to add more licensed brands to strengthen our branded businessportfolio.
We distribute these brands primarily through our Retail partners aroundthe world (B2B model). We have recently partnered with the second largest retailer inMainland China Lao Feng Xiang (LFX) which has marked our entry into the Mainland Chinesemarket. We believe that the Chinese market has immense potential and would be a hugeopportunity for the Company.
We have also set-up our own DirecttoConsumer(D2C) websites for each ofthese licensed brands which are showing great promise. Further our company has alsolaunched websites of our own brands 'Made For You'- lab grown diamond jewellery andJewelili'. Our D2C business has already managed to post revenues of Rs.65 crores duringthe financialyear2020-21 and is running at an annual revenue rate of Rs.115 crores basedon our estimates.
We envision to grow theshareofourBrandedB2Band D2C businesses at a muchfaster pace through the above omni-channel strategy.This will help improve our returnratios substantially. I am confident that this growth combined with our razor sharp focuson financial prudence will create meaningful value for our shareholders.
I would like toendthismessagewithathankyoutoall our Stakeholders -Employees Customers Suppliers Bankers and our Shareholders for their continued supportand faith in this Company.