We are pleased to share with you the Annual Report of your Company forthe Financial Year 2018. During the year your company saw a 12.4% growth in revenues fromFY 2017 a healthy sign of improving Steel sector in India. This growth has been from oldplants as well as some green field projects of steel plants coming online in FY 2018. Yourcompany has maintained the EBIDTA margin of 7% while increasing the revenues which has ledto increase in absolute EBITDA by 16.7%. The EPS growth has doubled as compared to lastyear growing by 20%. The Profit After Tax stood at 4.75 Crores on net sales of 171.26Crores against 153.87 Crores in FY 2016-17.
Your company has been breaking it's own records by way of production ofCored Wires and Aluminum Flipping Coil. This is year has been the year of highestproduction ever by your company. The company also saw it's Ferro Aluminum plant comingonline in FY 2018. Ferro Aluminum is looking at healthy sales in FY 2019 especially fromnew customers. The average capacity utilization has been below 60%.
It has been more than a year since the shares of your company werelisted on the Bombay Stock Exchange. The company's market capitalization has seen varioushighs and lows but comparing the year-ends market has rewarded your company with a 17%increase in market capitalization.
Your company is consistent committed in it's strategy of backwardintegration. The company has started setting up Aluminum wire rod mill for backwardintegrating our aluminum flipping coil product. With the help of this backward integrationwe shall be able to reduce our raw material costs add to our gross margins and leverageour existing relationships and brand name with the steel plants. Furthermore your companyshall be able to increase its market share by offering this product at competitive prices.The aluminum wire rod plant shall be come online by October 2018.
Your company has been delivering strong growth and performance due tohold on the domestic as well as exports market. Sarthak's brand good name strategy ofbackward integration and research on new products has been the key in keeping new entrantsat bay. We continue to grow by leveraging our strengths and exploiting new opportunities.
I express my thanks to all fellow Directors for their invaluablecontribution through their guidance and encouragement which have been momentous for thesuccess of the company. I would also like to thank all our employees for their hard workdedication and strong commitment towards our company.
I finally thank all of you the stakeholders for your continuedpatronage and trust in the management of your company. I assure you that we are committedto building a company which we all shall be proud of.
sd/-ANOOP KUMAR BANSAL
Managing Director Sarthak Metals Limited