I am pleased to share with you the performance of your Company for the year 2018-2019.The year has been a challenging one during which our employees exhibited their commitmentand team spirit to enable the company to progress towards its vision. In FY19 westrengthened our capabilities and offerings delivered operational excellence andincreased our brand equity. The extended winter resulted in excess stockpiling in the USmarkets by end of 2017. Coupled with that surplus production in all shrimp farmingcountries resulted in drastic fall in global shrimp prices in 2018. Disease outbreaks dueto abnormal climatic conditions also climatic conditions also added to the woes of Indianfarmers. For the first time post Vannamei introduction shrimp production in the countrydeclined and many Indian farmers farmers suffered losses. suffered Feed manufacturers werechallenged with falt challenged faltering ering demand demand for feed and thefor feed andth anticipated rebou anticipated rebound nd in the the raw materialmaterial pricesriceswhich had fallen which had fallen to to abnormally low l levels vels in 2017. This impactThis impacted ed th the performance performance ofof many any players in the sec playersthe sector tor as the combination of sl of slowingowi growth and revers reversion on of ofmargins to long ter long term m lev levels led to a compr led compressionssion in profitaprofitability bility both absolute and relative. I am delighted to inform you that yourCompany was able to successfully counter the challenges at the macro and sectoral level toemerge with industry leading (beating) growth in revenues and profitability.
During the year your company overcame the prevailing challenges by expanding ourbusiness in new and existing markets strategic sourcing of key raw materials andmaintaining tighter controls on costs. Your Company achieved growth of 8% year-on-year inrevenues which stood at Rs. 371.7 Cr for the year as against Rs. 344.3 Cr in the previousyear. Our Net profit for the year stands at Rs. 30.8 Cr as against Rs. 29.9 Cr in the lastyear with a 3% year-on-year growth despite rebound in raw material prices. The Board hasrecommended a final dividend of Rs. 1.50 per share (@ 15% on Equity share of Rs. 10/-each) for FY19 subject to shareholders approval at the forthcoming AGM.
I am happy to share that we further strengthened our product value chain bycommissioning the first phase of our Vannamei hatchery. This would help the farmers to getgood quality seed (Post Larvae) which is very critical for the success of shrimp farming.In addition to bringing more offerings under the Waterbase fold this initiative webelieve will enhance the sustainability and the success rates for our customers. Overalllong term prospects for Indian shrimp production continue to be positive as the Sea foodindustry shifts further towards aquaculture and reduces reliance on capture fishing.Seafood consumption continues to increase across the world and with Indian shrimp farmingmoving ahead in terms of adopting best farming practices and global benchmarksIndias leadership position in shrimp exports is set to endure in the years to come.Indias long coastline R&D strength among manufacturers and research institutesavailability of manpower at competitive wages and policy support from government are thekey drivers of growth in our sector. Feed manufacturers like Waterbase are poised tobenefit in the long term. We expect shrimp production to be marginally lower in
FY20 due to delayed farming season and reduced stocking by farmers during the summercrop due to subdued farmgate prices. We are keenly watching the situation and will try toovercome impediments in our way through our operational agility product innovations andmarket expansions. I would like to take this opportunity to thank each and every employeefor their commitment and contribution towards achieving our goals with the highest ethicalstandards. I would also like to extend my gratitude to all our customers vendors Bankersand Government agencies for their continued support. I would also like to convey mysincerest appreciation to the Board of Directors for their valuable guidance . And lastlyI also express my heartiest gratitude to all our shareholders for their continued faithencouragement and support.
With best wishes
Vikramaditya Mohan Thapar