I am pleased to present our annual report for the fiscal 2016-17. It was a year ofsustained growth and resilience. Our resilience was derived from the ability to identifyopportunities attaining product registration investing in enduring relationships andprudent finance management - across geographies and industry cycles.
The result is reflected in our financial performance. The total revenue of ShardaCropchem for FY 2017 increased by 14.5% from ` 12221 mn in FY 2016 to ` 13992 mn. EBITDA(excluding other income) grew by 15.1% from ` 2714 mn in FY 2016 to
` 3124 mn in FY 2017 in line with the higher revenues. Net profit after tax andminority interest grew by 8.7% to ` 1904 mn. Our EBITDA margin and PAT margin stood at22.3% and 13.6% in FY 2017. Our balance sheet remains debt free with net cash of ` 1684mn as on March 31 2017.
During the year the agrochemical division saw a volume growth of 16.8% whichtranslated into a revenue growth of 16.4% at ` 11988 mn. The revenue of the business weredriven primarily by the contribution of European Union region which constitutes 50.4% ofthe agrochemical revenues followed by NAFTA region with 26.5% LATAM with 12.7% and restof the world with 10.4% contribution.
The revenues from non-agro division which constitutes 14.3% of the revenues grew by4.4% from ` 1921 mn in the previous year to ` 2004 mn in FY 2017.
Our performance was a result of our competency in identifying opportunities in genericmolecules formulations preparing dossiers and seeking registrations in the relevantjurisdictions. We have showcased our capability by securing registration in the toughestmarkets such as Europe. Sharda Cropchem has secured 1041 registrations in Europe out ofits 2174 total registration across geographies.
Our asset light business model helps us pay unfettered attention on productregistrations and outsourcing manufacturing. As a result our library of dossiers and thenumber of registrations have been increasing progressively. During FY 2017 we got 409product registrations across various countries. This is an outcome of our understanding ofdifferent geographies focused
WITH OUR READINESS FOR CHANGE AND DECADAL SECTORAL EXPERIENCE WE REMAIN COMMITTEDTOWARDS EMBARKING ON THE GLOBAL OPPORTUNITIES COMING OUR WAY.
efforts in seeking registrations and our investment of time and capital towards thisobjective.
Our prudent financial management helps keep a tight control over the working capitalcycle and managing foreign currency volatility through sound hedging mechanisms.
It is the coming together of these diverse capabilities that makes us a well-roundedplayer and enhances the optimism of sustained outperformance.
During the year our supplies from China were affected owing to environmental concerns.This effected our terms of deliveries with respect to time and cost and we are doing ourbest to minimise the impact.
The European region has been the key revenue contributor for the Company. We havemajority of our registration in Europe because of the attractive margin it offers.However we faced challenge on the incremental demand front and we were unable to gettimely registration owing to factors beyond our control. Also a combination of sharpdepreciation of Euro against US Dollar and upward pressure on the sourcing prices pulleddown the growth in the region.
With slower growth in the European region the Company enhanced its focus in the NAFTAregion. We also received registration in crops of corn and soya and got into the marketsof the USA and Canada.
We remain attuned to the concerns and challenges prevailing in the global economy. Withour readiness for change and decadal sectoral experience we remain committed towardsembarking on the global opportunities coming our way.
With a strong line-up of new registration and molecules directed at over-coming theshort-term challenges bodes well for us. Today we have 458 registrations in the pipelinein European regions 131 in the NAFTA region 199 registrations in LATAM and 57registrations in the Rest of the World.
Our strategic extension into new markets and increasing market share in existing onesalong with our products and geographical diversity will help us generate sustainable andprofitable growth.
R. V. Bubna
Chairman & Managing Director