We are pleased to share with you the Annual Report of your Company for the FinancialYear 19-20. This financial year has been particularly unforgiving for the steel industrywith the industry seeing multiple consolidations and contraction in demand. The doubleedged sword of weak domestic demand and cheaper imports kept the sales for your company'sproducts below projected levels. The contraction in demand was attributed to mostlydecline in auto sector sales and low infrastructure spend by the government.
Your company has clocked a 14.46% turnover growth as compared to FY2019. The steelindustry continues to place trust in your company for all it's critical alloys needs. Yourcompany's ability to cater needs of all major steel plants in India even in periods ofuncertain demand shows better supply chain forecasting than most in the industry. Despitemajor hurdles of consolidation and changing product portfolios of the intra groupcompanies your company has been successful in scoring all the major orders in theindustry. The domestic sales of your company has increased by 31.85% clearly identifyingyour industry as the brand leader in the Indian Market for all it's products.
However the company had to sacrifice on EBITDA margins to retain market share whichhave fallen from 7.11% to 5.73% in FY20 as compared for FY19. Due to cascading effect thePAT & EPS have also suffered a decline of 20%.
Your company did its best production ever in FY 2020 in terms of quantity and turnover.The Aluminum wire rod plant of the company has been performing at 40% capacity and haslong term orders from Tata Steel Limited JSPL & other major steel plants. The coredwire plant is operating at 65% capacity. Your company clearly has a potential to growsignificantly as and when aluminum wire rod plant starts operating at optimum capacitywithout any capital expenditure requirements.
I express my sincere gratitude to all fellow Directors for their invaluablecontribution through their continous guidance and encouragement which have been momentousfor the success of the company. I would also like to thank all our employees for theirhard work dedication and strong commitment towards our company.
I finally thank all of you the stakeholders for your continued patronage and trust inthe management of your company. I assure you that we are committed to building a companywhich we all shall be proud of.
ANOOP KUMAR BANSAL
Sarthak Metals Limited