Dear Fellow Shareholders,
During the financial year 2017-18, the macro business environment was characterized by uncertainty and volatility. While global growth is showing signs of recovery there is still a long way to go. The recovery was markedly stronger than expected in the Euro area, and, to a lesser degree, in the United States and Japan. As economic slack demises and monetary policy becomes more accommodative growth is expected to stabilise. India’s growth story has largely remained positive, and India has registered a steady pace of GDP growth around 7 percent in the financial year 2017-18. The growth path for India looks promising led by, GST being implemented, focus on cleaning up the nonperforming assets especially of PSB’s (public sector banks), their recapitalisations and a string of mergers being on the anvil. The Government continues its focus on bringing in fundamental reforms to liberalise business and this will provide strong impetus to growth in the future.
Despite a very competitive and challenging environment, the overall performance of the Company has been significantly positive. With appropriate strategic and effective measures in place, your company is well on course to improve its performance.
The net income of the Company during the year ended 31st March 2018 was Rs. 540.55 crores as against Rs.404.85 crores for the year ended 31st March 2017. During the year under review the Company made a net profit after tax of Rs.4.81 crores against the net loss of Rs.51.77 crores for the previous year ended 31st March 2017.
Your Company has been continuously focusing on all round cost reduction in different areas of operations to achieve savings and gains that has significantly contributed to the above performance. Continued focus on providing that high quality, world class new and innovative products, with a clear vision on keeping the customer’s need in mind will always hold the Company in good stead and positively enhance the Butterfly brand value and contribute significantly towards a stronger financial performance.
As we look to the future, we believe that we will be operating in a demanding and challenging environment. The Company is also focusing towards building a strong foundation in modern trade, retail and e-commerce formats and also has tied-up for supply to Canteen Stores Department and Government Stores and is looking to substantially increase in exports. Your Company will continue to build on its strengths through strong operating systems and processes, competitiveness, ability to adapt to changes quickly and customer engagement. I ^believe however, that the combination of low manufacturing costs along with quality systems has positioned our Company well in terms of pricing and quality, knowledge, specialisation, innovation and networking and will determine the success of the Company in this environment. The overall strategy of your Company will be driven by its strength and competencies.
As we look ahead to greater prosperity, I would like to express my appreciation to our employees at all levels for their contribution towards the performance of the Company. I would also like to extend my gratitude to our Customers, Stakeholders, Bankers and Suppliers for their loyalty and trust in us. I would like to express my sincere appreciation to all our Shareholders for their continued encouragement and support.
Butterfly Gandhimathi Appliances Limited