I hope you are safe and secure during this global health crisis. The current situationis unprecedented in its impact and outlook on businesses and livelihoods.
Every country and organisation is fighting on two fronts; protecting lives andsafeguarding livelihoods. At Sudarshan too we have been working to ensure that ouremployees are safe at our sites and operating from the safety of their homes whereverpossible.
As we all try to navigate these unchartered waters I would like to thank our strategicpartners and stakeholders for their timely insights and support that enabled us to moveswiftly in a disciplined manner to support our employees customers and stakeholdersalike.
Within days of the lockdown we created a Covid Nerve Centre team that focused onprotecting employees; ensuring plant and supply chain readiness; monitored financialhealth; maintained customer connect; reached out to employees and families; reinforced thetechnology infrastructure and secured our plants and fixed assets.
Today more than ever the Indian chemical industry is poised to take a huge leapforward as the world looks for a sustainable as well as competitive hub for theirfeedstocks. The global landscape for the pigment industry is undergoing a significantshift both due to the ongoing consolidation of major players as well as the need for areliable pigment player. Sudarshan is now ideally positioned to meet this requirement dueto our regular investments in infrastructure capabilities and technologies.
From the financial perspective we have managed to grow our revenues at 7% with totalincome from operations in FY2019-20 at Rs. 1708 crores as compared to Rs. 1593 crores inFY2018-19. EBITDA recorded a significant growth of 19% with margins at 14.4% in thecurrent fiscal year as compared to 12.8% in the previous year. Profit after Tax withoutexceptional items was recorded at Rs. 132 crores with a growth of 63%.
Major Highlights of FY 2019-20
In the last year we made some significant achievements towards our journey to beamongst the top 3 pigment players in the world. The major highlights were as follows: Ourefforts on multiple fronts have started to pay off handsomely as we achieved highest eversales in the months of January and February 2020. If not for the pandemic we would haveended Q4 FY 2019-20 with the highest-ever growth
W e successfully executed multiple capacity increase projects and commissioned a plantfor one of the most crucial new chemistries needed for our growth journey ahead. We alsoinitiated Capex that will allow us to drastically reduce costs as well as enter additionalnew chemistries in the coming year
Our new product development team delivered 20 new products in existing chemistries inaddition to adding a new chemistry in our portfolio. The NPD function is one of ourcrucial growth engines and we continue to strengthen it with highly qualified team memberswith global experience
W e completed an upgrade of our ERP to SAP S4 HANA and are one of the few companies whowere able to execute the final stages of the upgrade with the implementation team workingfrom home
In these difficult times we are taking all necessary steps to ensure employee safetyat our sites and conducting multiple learning and development initiatives to keep our teamengaged and motivated even as they work from their homes
Key Thrust Areas for FY 2020-21
Our focus on FY 2020-21 will be to ensure a safe and swift ramp up of our operations toresume the growth journey. Our key thrust areas will be:
Capitalise on the tailwinds created by supply disruptions from China Scale up andinitiate business with complementary pigment chemistries Launch 15-20 new products inexisting and new chemistries Commission all new Capex projects started in FY 2019-20 Improve our cost position in 7-8 chemistries
People and Culture
The success of our efforts to grow wide and deep is linked inextricably to our abilityto bring together the expertise and energy of our team members. Our mission vision andvalue systems are key enablers that allow us to work with such a diverse team cohesively.We will continue to invest in them and introduce industry-leading practices to enhancetheir growth and development.
Business Continuity and Making a Difference to Our Communities
I am proud of the fact that even during these challenging times we remained committedto our higher purpose of Growing together by being Spiritually fulfilled Sociallyjust and Environmentally sustainable'. Delivering on our commitments we directed ourefforts towards providing food and essentials to daily wage migrant workers and supportedthe local healthcare infrastructure.
Our successes in FY 2019-20 have been the crucial building blocks for the quantum leapwe envision in the future. These past months have been challenging yet they have alsogiven us the opportunity to demonstrate our resolve as a team. I am confident that we willemerge stronger and more resilient as we prepare to take on FY 2020-21.