It is my privilege as the Chairman and Managing Director to report the Company'sperformance and share the key highlights of FY 2019 and the strategic roadmap goingforward. As a Company we have always strived to better our past by continually deepeningour domain expertise adding value and expanding our product portfolio.
Also our steadfast focus on innovation and Metallurgical Technology has helped usevolve into a trusted engineering and technology solution partner to leading globalcompanies.
In global macro-economic terms CY 2018 was an eventful year. Despite a growth of 7% inGDP terms the industrial growth remains subdued. Factors including concern over tradewars weak financial markets sentiments lagging investment cycle by Government and Privateenterprise. Having said that CY 2018 was a relatively better year for the Company's mainsegments catering to industrial sectors.
In India the economic scenario improved on the back of strong household spending andcorporate fundamentals. Sustained spending on infrastructure for revamp of oil refineriesfor meeting Bharat VI requirements and defence supported by the Make in India'movement kept the economy buoyant besides unlocking a virtuous cycle of selectiveinvestment opportunities.
Mr. JAYANTILAL B. SANGHVI
Chairman & Managing Director
Performance review for the year
Your Company has achieved a growth in Turnover & EBITDA showcasing the commitmentto grow. The good progress we witnessed in each of our businesses was gratifying. Turnoverhas increased by 8% to Rs 6144.04 Lakh for the financial year ended March 31 2019as against a turnover Rs 5663.30 Lakh respectively during the previous year. FY2019 proved to be hopeful year for the Company thanks to robust demand from the domesticmarkets across several sectors. Despite facing some macro challenges in the latter part ofthe year we recorded improved EBITDA to Rs 436.21 Lakh for the financial year ended March31 2019 as against EBITDA Rs 263.16 Lakh respectively during the previous yeari.e. 65% increase from the previous year.
Establishing new engines of growth
As a constantly-evolving organization we leverage our existing competencies intechnology and engineering to explore new growth opportunities. This is an essentialprocess to create additional revenue streams amplify growth and de-risk the business. Toachieve the same we are focusing on New Engines of Growth:
Focus on existing Niche Markets aligned with Macro Economic Development
Developing Futuristic products with Complete complexity of Application &Services.
Implement Innovative Technology for product development through DigitalTransformation.
We believe that people work best when there is a Foundation of trust.
We have presence in Industrial Sectors Oil & Gas Defence General Engineering& Tools Steel. These segments provide more resilence & stability to the businessenabling it to effectively diversify & grow.
Our special emphasis on processes and hiring the right manpower ensures we deliver thesolutions for our clients and exceed their satisfaction levels. With a deep-rootedcommitment to serve the customers with the best of its abilities Steel Forgings hasevolved as a renowned entity trusted implicitly by its customers.
Our constant efforts to evolve from our present situation have enabled us to becreative and competent in every industry.
We at SFEL have put in every effort to maintain a greener planet and leave as lesscarbon foot print as possible. In the coming years we will continuously work towardsexpanding our presence and improve our financial performance.
On behalf of my colleagues on the Board of Directors I would like to thank ouremployees for their hard work our shareholders to put their trust and faith upon us ourcustomers to appreciate our products and our management for their coordination andsupport. We hope for a better year ahead.
Mr. Jayantilal B. Sanghvi
Chairman & Managing Director