The FY 2019-20 was a challenging year for our business in many ways. The businessachieved a double-digit growth in the first half of the year and the second half of theyear was sluggish due to lower demand across the key sectors. The business was focused onthe market development and customer engagement activities. Shanthi Gears Limited (SGL)participated in Indian and International exhibitions and gained visibility. We got theopportunity for developing products for newer applications in the overseas market. Yourcompany continues to focus on maximizing the custom build products cost optimization andenhancing the delivery performance. The team is working on many product developmentactivities for major global customers in priority sectors. The results of these effortswould be seen in the coming years.
Your Company launched "Shanthi Re-build" to promote the servicebusiness and inaugurated Shanthi Re-build service centers in select areas in the countryto enhance reach. Customer relationships were built through a high level of customerengagement activities during the year. The company established itself as the most reliableservice provider in servicing of critical Gear Boxes for various industries including theGovernment Sectors. SGL invested in precision equipments wherever technologicalupgradation was required to address the emerging opportunities.
The Company continued its focus on 4 key financial priorities i.e. Revenue growth Protability Return on Capital Employed (RoCE) and Free Cash Flow (FCF). Conscious effort oncash generation such as effective working capital management helped generate strong freecash flow for the year. The year ended with COVID-19 pandemic resulting in countrywidelock down. Your company prioritized the safety and health of its employees ensuredcustomer satisfaction and pitched in to help the society to battle the pandemic.
The real challenge would be in the coming months where we must nd ways to understandand respond to the gradually evolving dynamics of the new normal. Though there could bedifficulties your Company will overcome the downtrends by maintaining deep relationshipswith customers suppliers and other stakeholders. As we look to the year ahead I have condence that Shanthi Gears will continue to be admired as a reliable partner for MechanicalPower Transmission Solutions.
The members of the Board continue to be a great source of encouragement and support tothe Company's management team. I thank them for their involvement guidance andparticipation.
I also take this opportunity to express my gratitude to all of you our esteemed andvalued shareholders for the continued support and the con dence you have reposed in theCompany.