We are happy to report satisfactory progress during the year in
strengthening the operating and financial performance of the company.
This has resulted in substantial improvements in all financial
parameters over the last 3 years (FY11 to FY13).
1. Net Sales going up by 33% to Rs. 5517 Crores.
2. EBITDA going up by 56% to Rs. 574 Crores.
3. PAT going up by 141% to Rs. 203 Crores.
4. Net Loans have come down from Rs.1943 Crores in March, 09 to
Rs.1386 Crores on March, 13.
The improved performance is driven by very strong focus on costs and
turning around the non-performing/underperforming businesses over the
last 3 years including:
1. ~120% growth in Turnover of Bioseed business and over 120% growth
in Shriram Farm Solutions business (Excluding DAP/MOP) with
corresponding growth in profits.
2. Increase in capacity utilization in Sugar business leading to ~ 83%
growth in its revenues.
3. Increase in capacity utilizations in Chloro-Vinyl businesses with
turnover up by 50% and PBIT margins also up from 22.7% to 29.6%.
4. Rationalization and Restructuring of Hariyali business leading to
almost breakeven position in Q4 FY13.
The positive movement in prices of some of our products particularly in
FY13 also helped in better financial results.
FY14 has started with some concerns with Sugar turning into negative
margins due to substantial increase in Cane prices by Government of
Uttar Pradesh at a time when Sugar prices have declined. The prices of
Chloro-Vinyl products have also softened over last few months. The
fertilizer business is under pressure due to non-revision in Urea
retention prices since last 6-7 years.
Given this scenario, your company is further strengthening its efforts
towards cost rationalization and improving operating performance. This
1. Increasing Cane crush and Sugar recovery in the Sugar business.
2. Improving Raw material/Power efficiency and costs in Chloro-Vinyl
3. Growing Bioseed and Shriram Farm Solutions business at ~30% p.a.
over medium term.
4. Completing the rationalization/restructuring plan for Hariyali
business to eliminate losses and encash the surplus capital employed.
5. Taking Fenesta business to faster growth and positive profits
situation in next 2 years.
Simultaneously, the Sugar industry and Fertilizer industry is perusing
with the Government for more rational policy framework to make the
industry healthy and Viable.
We are confident that given the plans under implementation your company
will continue to achieve satisfactory financial performance going
Further, we continue to invest in our people to keep them engaged and
motivated. We continue to take steps to strengthen their competency
levels that will help meet challenges in this economic scenario.
The Company has always believed in doing business which will ensure
accountability, transparency in all its activities, hence has always
been focused on maintaining the highest standards of Corporate
Governance. We will continue to strengthen these standards by adopting
the best practices.
The Company has always focused on being Corporate Citizen which
includes carrying out business activities with social conscience and
making substantial difference to communities and society in which we
We would like to take this opportunity to thank all the members of the
board, business associates, employees, vendors, suppliers, government
agencies, lenders and shareholders who have always supported our
progress across varied business. With their cooperation, we are
confident of delivering superior value to all stakeholders.
With best wishes,
(VIKRAM S. SHRIRAM) (AJAY S. SHRIRAM)
Vice Chairman & Chairman &
Managing Director Sr. Managing Director