MANAGING DIRECTOR'S AND CEO'S MESSAGE
Our revenue for the year grew by 21% from Rs. 29706.30 Lakhs to Rs.35943.60 Lakhs in FY 2020-21. Turnover volume increased by 21% at 7712 MT from 6388 MT inthe previous year. This year over 62% of our total revenues were contributed by exportscompared with t 57% in the previous year.
I write to you during unprecedented times and trust you all are in goodhealth. The COVID-19 pandemic has adversely impacted millions of lives and economiesacross the world bringing industries and businesses to a grinding halt. Nonetheless theeconomic activity is expected to rebound on the back of favourable policy reforms andsuccessful roll-out of the vaccination drive; however the intensity and depth of thesecond wave of infections may derail this rebound.
At Yasho Industries we demonstrated strong resilience and registered arobust performance during the year. Continuous product innovation customer centricapproach and capacity expansion enabled us to deliver on our commitments and sustaingrowth momentum despite the challenging business environment.
Our revenue for the year grew by 21% from Rs. 29706.30 Lakhs to Rs.35943.60 Lakhs in FY 2020-21. Turnover volume increased marginally by 21% at 7712 MT from6388 MT in the previous year. This year over 62% of our total revenues were contributedby exports compared with 57% in the previous year. EBITDA grew by 38% to Rs. 5908.64Lakhs from Rs. 4291.47 Lakhs in the previous year. Our improved performance was driven bynew product development better capacity utilisation along with robust demand for ourproducts worldwide.
Net profit grew by 78% to Rs. 2147.74 Lakhs from Rs. 1204.46 Lakhs inthe previous year. This was owing to higher demand from overseas markets and upscaling ofdemand owing to pollution issue in China. Value-added chemicals particularly RubberLubricants and Specialty segment contributed a significant amount to our profitabilitythis year. With demand for these chemicals constantly increasing in the internationalmarket we expect specific segments to perform well and contribute to future growth andprofitability.
As you would expect we stringently adopted all COVID-19 appropriatesafety protocols across our locations and also implemented additional measures to ensurehealth and wellbeing of all our people in these testing times.
ENSURING HIGHEST QUALITY AND CONSISTENCY
Quality and consistency is of paramount importance to us. We understandthe criticality of our business for downstream companies and ultimately the end-users. Westrive to maintain high standards of quality while also attracting newer customers andstrengthening relations with the existing ones. In recent years we have spentconsiderable amount in purchasing state-of- the-art instruments which help us monitor ourproduct quality. Further though having multipurpose plant we have automated severalplant processes which minimise batch to batch variation and helps us deliver consistentquality products.
Our stringent checks and a quality control team ensures that quality ismaintained through every process - right from procurement of raw materials to delivery. Wealso adhere to all the national and international quality standards. Our manufacturedproducts are first sent to the Quality Department where quality of the finished productsis inspected on a sample basis putting them through various test parameters and testingmethods. Regular quality audits are also undertaken by the in-house quality control team.
GROWING DEMAND FOR SPECIALTY CHEMICALS
The Indian specialty chemicals market is increasingly gainingimportance as the world looks to reduce its dependence on China. Globally specialtychemicals is estimated to reach USD 953.9 billion by 2027 growing at a CAGR of 5.0%.India's specialty chemicals sector is also expected to grow rapidly and will be driven byincreased application in different products. A unique combination of talented manpower andlow-cost production makes India an ideal production hub for global markets.
Our core competencies include a diverse portfolio long-standingcustomer relationships and outstanding technical and manufacturing capabilities that makeus globally competitive. We are well qualified with respect to experience certificationsand possess an in-house R&D team to develop and deliver products indigenously. Wecontinue to see improving performance across end user industries on the back of robustdemand. We are also witnessing a shift in international trade patterns and believe this isan opportune time for Indian chemical players like us.
In the wake of the COVID-19 pandemic many companies across the globeare scouting for new alternate vendors and we are happy to qualify and become theirlong-term business partner. Therefore we are working on increasing our exports to fillcapacities especially for the industrial and specialty chemicals segment.
Our stringent checks and a quality control team ensures that quality ismaintained through every process - right from procurement of raw materials to delivery. Wealso adhere to all the national and international quality standards.
Further government's powerful 'Atmanirbhar Bharat Abhiyan' will befundamental in promoting domestic manufacturing and increasing India's self-reliance thuspresenting enormous opportunities. We are also focused on enhancing capacities andimproving product mix to encapsulate the upcoming opportunities presented by our customerindustries spread across the globe. Our primary goal is to ramp up our existing capacityto an optimum level. As we lay the foundations for a strong and future-ready business ournewly expanded capacity of Rubber Lubricant and Specialty chemicals will fructify in thecoming months.
As part of our Corporate Social Responsibility we strive to promotelivelihoods and ensure holistic development of our communities. During the year wecontributed a sum of Rs. 10 Lakhs towards CM relief fund in Gujarat and Rs. 5 Lakhstowards PM relief fund to help the government combat the COVID-19 pandemic. We are alsoassisting in rebuilding of a primary school in Kocharva Village Vapi and equip it withthe latest technology such as classroom projectors computer laboratory etc.
I would like to take this opportunity to thank our esteemedstakeholders our shareholders our customers our suppliers our business partners andour family of dedicated employees for their unstinted trust and support in these difficulttimes.
We remain satisfied with the progress we are making yet we believethat we still have a way to go. We believe that the combination of our inherentcapabilities expert management innovation strength and culture of customer-centricitywill support us in our journey of driving consistent growth and success.
|Warm Regards |
|Parag Jhaveri |
|Managing Director & CEO |