It gives me a good opportunity to connect with you through our annual report everyyear. The year went by saw us focussing on strengthening our core business amidstregulatory uncertainties that created a temporary curiosity.
India emerged as the fastest growing economy globally with a GDP of 6.7%. The yearwitnessed the implementation of one of the biggest economic reforms the Goods andService Tax (GST). The whole nation under the regime of one tax initially had a wave ofuncertainty set about its practical implementation. The textile industry was also noexception. But subsequently the teething problems were resolved and there was a smoothtransition. This move will subsequently make the textile industry more organized andconsolidate in the years to come. Right from the raw material suppliers to theend-consumers a single tax regime will ensure smooth movement of business and benefittingthe economy as a whole.
At Sangam while we were already grappling with the raw material suppliespost-demonetisation GST implementation further posed as another temporary hurdle. Besidesthis there was an increase in the power tariff from the Rajasthan Government which ledto an increase in power cost by 3.29%. All these combined impacted the Company's bottomline.
During the year under review the net revenue increased from Rs1594 Crores in2016-17 to Rs1638 Crores in 2017-18. EBIDTA changed from Rs183 Crores in2016-17 to Rs134 Crores in 2017-18. The Net Profit declined from Rs55 Croresin 2016-17 to Rs30 Crores in 2017-18 largely attributable to the challenges facedduring the year.
We at Sangam did not get fazed by the temporary hiccups. Instead we continued toimplement the strategic initiatives charted out in the previous year. We continued ourfocus on the seamless garment segment as per the growth path laid down in the previousyear. We aspire to be a key player in this segment where exists a huge growth potentialowing to substantial proportion of young population coupled with the rising aspirationsof emerging India consumption and affordability. We also foresee a huge scope beyond theurban metros that upholds the power to fuel the nation's economic engine. Besides as apart of our capex plan of Rs135 Crores we installed a rope dyeing machine 78looms at our denim unit and initiated balancing and modernization of our existing units.
With our highly integrated business model across the value chain right from yarn tobranded garments combined with ongoing modernization initiatives we are evenly poised tobenefit from the opportunities in the years to come. I appreciate the efforts anddetermination of the Team Sangam for positively accepting the challenges and moving aheadwith a solution-centric approach. I would like to thank the investors and stakeholders fortheir unwavering trust. We hope to continue this association for the years to come.
R. P. Soni