At Snowman we believe that this strategic direction was validated by the financials.Your Company reported CAGR revenue growth of 31 per cent in the five years ending 2015-16and a profit after tax growth of 27 per cent during the period. This growth was 2x thesector growth average validating our strategic priority.
Following this aggressive business investment over the last five years the time hascome to consolidate our capacity addition and enhance value from our existing assets andfacilities. We believe that such an approach will enhance our asset utilisation revenuesfrom existing assets and return on employed capital. At the same time Snowman willcontinue to invest in building capacity further with a goal of growing by 15-20% everyyear.
In this financial year there have been some changes in the business model of Snowmanafter the management changes which took place during the year. Under the new leadershipteam the Company is now focused on its core business of temperature controlledwarehousing for frozen and chilled products and has decided to cater to the distributionbusiness only related to our warehousing business. With these changes and a reduced fleetsize which is fully owned instead of leased the transportation margins have improvedwith better control and higher capacity utilisation.
Snowman Logistics was a first-mover in India's warehousing business offeringspecialised temperature-controlled warehouses. The company's infrastructure comprisedcompartmentalised temperature-controlled and power-backed warehouses proximate to keyconsuming markets coupled with mechanised product handling. Gradually the Company widenedthe moat graduating one-off business transactions into long-term relationships marked byquality considerations over price. In addition to this your Company selected to invest intransport services as an ancillary support to the overall warehousing business whichincreased the share of specialised customers in the portfolio which enhanced returns onpallet investments.
Note of thanks
I wish to thank all our stakeholders - shareholders investors bankers customersvendors and employees - who have demonstrated faith in our business model and in theCompany's vision. I assure that the outlook appears promising and we expect to reportsustained market outperformance going ahead.
Prem Kishan Dass Gupta