From the Chairman''s Desk
I am happy to report that your Company continued its journey of profitable growth in the financial year (FY) 2017-18.
Maintaining its position in key markets, your Company achieved a revenue ofRs, 903.35 crores, an increase of 5.3% over the previous year. Profit before tax (PBT) was Rs, 153.01 crores, 24.3% higher than the figure recorded in the previous year. Your Company achieved a significant milestone of earning over Rs, 100 crores profit after tax (PAT), recording PAT of Rs, 105.12 crores. The return on capital employed (ROCE) was 23.8%.
Considering the performance, your Board of Directors has recommended a dividend of Rs, 4.50 (45%) per share.
The increase in profitability was largely driven by outstanding performance in international markets. The global salmon aquaculture industry continues to perform well and your Company secured wider and deeper reach through its value-added products. Apart from this, your Company saw significant growth in new markets of South America and Oceania. The international business was ably supported by our manufacturing plants, which executed orders in a timely and cost-efficient manner. Two recently introduced products received excellent market response, and showed the potential to make significant contribution to your Company''s balance sheet in the future as well.
Comparatively, your Company''s performance in domestic markets was subdued, mainly due to the teething troubles associated with the new Goods and Services Tax (GST) implementation. As reported by the Reserve Bank of India (RBI) in its fourth bi-monthly monetary policy review of 2017-18, GST had an adverse impact on the manufacturing sector, and also affected the revival of investment activity, which was already hampered by the stressed balance sheets of some banks and corporates. However, with a strong focus on execution, your Company could improve revenues from domestic markets in the second half of the financial year. Particularly our geo-synthetics and agriculture divisions recorded impressive performance, and we see good scope of increasing returns in these segments.
Application-focused innovation is the driver of your Company''s growth, and in the year under review, our R&D team notched several achievements that had a direct impact on our profitability. The team is currently engaged in development of some break through products that will offer significant value propositions and enhance the profitability of our customers across the globe.
It gives me great satisfaction to report that all our internal teams worked tirelessly towards the achievement of clearly defined goals. The efforts taken and the results obtained greatly increased internal confidence, organizational acumen and the ability to plan and execute in harmony. These gains were reinforced by several HR initiatives, to encourage employee engagement, team-building, and demonstration of core values in daily operations. We are proud to state that we are recognized as a ''Great Place to Work'', and are ranked 34 great mid-size workplaces in India. This reflects the commitment and engagement of our team towards achieving your Company''s goals and delivering excellent products and services to our customers.
As you are aware, more than 40 years ago, my late grandfather, Mr. Abasaheb Garware, founded Garware-Wall Ropes Ltd. with a vision of building an institution of modern India, built on a foundation of excellence in quality, customer focus, innovation and enhancing value to all our stakeholders. The vision was further built by my father, Mr. Ramesh Garware. We are proud of this legacy and will do everything to protect and build on this valued heritage. But we also recognize that we have evolved as a Company: We have become global, technically advanced, and with presence in many segments. Hence, after intensive research to understand our brand equity, we have decided to modify the way we project ourselves to the outside world, so that it reflects who we are truly. Accordingly, we have decided on a new name, a new logo, and a new positioning statement.
To build a globally admired Company, while preserving our rich legacy, we are now Garware Technical Fibres Limited. Our new positioning statement is: Better Ideas in Action. The rationale for the choice of name, logo, and positioning statement is explained in an earlier part of this annual report.
Your Company has a clear roadmap for the near future, focused on achieving its potential, strategically tapping identified opportunities, continuously optimizing costs, working with agility, and sustaining a winning culture. I look forward to your support in this effort to build a very strong and successful organization that is the preferred partner of our customers across the world, whilst enhancing stakeholder value.
With warm regards,
V. R. Garware
Chairman & Managing Director