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GFL

BSE: 500173|NSE: GFLLIMITED|ISIN: INE538A01037|SECTOR: Chemicals
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Mar 14
Chairman's Speech (GFL) Year : Mar '15
Dear Shareholders,
 
 We are delighted to present to you to our 28th Annual Report of your
 Company for the Financial Year 2014-15. This year has been a milestone
 in making GFL one of the most successful promoters in the Initial
 Public Offerings (IPO) market. The key highlight of the year was the
 public issue of our wind energy business with the launch of Inox Wind
 Limited (IWL) as a listed company in March 2015. The issue received an
 over-whelming response from all categories of investors, witnessing an
 over-subscription of 18.6 times. We extend a warm welcome to each
 investor to the Inbox family and express our sincere thanks for making
 the IPO a grand success.
 
 We are delighted to share with you the progress made in all our
 businesses in the Financial Year 2014-15.
 
 Consolidated Operational and Financial Highlights:
 
 At the consolidated level, our total revenues increased by 54.74%, from
 Rs. 3,45,154 Lakh in FY2013-14 to Rs. 5,34,081 Lakh in FY2014- 15. Our
 EBITDA and other income increased by 73.03% from Rs. 59,815 Lakh in
 FY2013-14 to Rs. 1,03,501 Lakh in FY2014-15. Our
 
 PAT improved by 214.48% from Rs. 1,861.02 Lakh in FY2013-14 to Rs. 5,852.65
 Lakh in FY2014-15. PAT margin at a consolidated level has improved from
 5.40% to 11.00%. We are pleased to say that these results are the
 outcome of robust performance from each of our business verticals. The
 break-up of our consolidated revenues comes from the four key segments
  the chemicals business, the wind turbine manufacturing business, the
 flm exhibition business, and the wind farming business, which
 contributed 25%, 51% and 19% and 5% to total revenues, respectively.
 
 Chemicals Business:
 
 We are pleased to inform you that we performed reasonably well across
 all our product segments within our chemicals business.  Looking at the
 financial performance of our chemicals business on a standalone basis,
 we are pleased to inform you that revenues rose by 15.78% from Rs.
 1,14,094 Lakh in FY2013-14 to Rs. 1,32,097 Lakh in FY2014-15. In
 parallel, our EBITDA and other income improved by 46.56% from Rs. 18,977
 Lakh in FY2013-14 to Rs. 27,812 Lakh in FY2014-15, signifying an
 improvement in EBITDA margin from 17% to 21%. Our PAT went up by 414%
 from Rs. 7,443 Lakh in FY2013-14 to Rs. 38,235 Lakh in FY2014-15, with PAT
 margins improving from 7% to 29%. The strong growth in revenues
 resulted from a combination of the introduction of specialty chemicals
 and exports of refrigerants, along with improvements in margins due to
 higher operating leverage and efficiencies.
 
 In our chemicals business at GFL, we are reaching an infection point
 where our size, scale, operational efficiencies, investments made in
 marketing efforts and high value-added manufacturing is placing us in a
 sweet spot for increasing market share in the global markets. As we
 grow our customer base and start seeing the fruits of our efforts on
 developing high-value products and getting customer approvals for our
 various grades, we are well positioned to deliver superior business
 performance with all our KPIs improving steadily.
 
 Our integrated manufacturing capability and size will continue to give
 us economies of scale and keep us competitive in the PTFE marketplace.
 With this, we expect capacity utilization to improve from our current
 levels of around 60% to reach near-full capacity utilization over the
 next 2-3 years. Higher capacity utilization and increased contribution
 from the higher value-added PTFE grades will result in a positive
 operating level and improvement in our operating margins. Our focus on
 waste recovery and other cost optimization schemes should also bring
 down the operating cost across the value chain. Finally, we expect good
 results from our focus on HF and TFE based four specialty chemicals
 that are used by pharmaceutical and agro-chemical industries.
 
 Wind Turbine Manufacturing Business:
 
 IWL''s strong operating performance, dynamic management team, superior
 product quality, meticulous project delivery capabilities, excellent
 technology tie-ups and a major thrust of the Government on renewable
 have made us India''s leading manufacturer of wind turbine generators
 (WTGs). Despite the sector facing challenging times in recent years,
 IWL has rapidly scaled up in the last 4 years, with our annual WTG
 sales increasing more than four-fold from 120 MW in FY2011-12 to 578 MW
 in FY2014-15. This was possible on the back of our unflinching
 commitment to invest into our business, even while the rest of the
 industry is in a stagnant mode.
 
 Our Consolidated Revenues, EBITDA and PAT for FY2014- 15 stood at Rs.
 2,70,993 Lakh, Rs. 45,744 Lakh and Rs. 29,642 Lakh respectively, resulting
 in a corresponding YoY growth of 73.00%, 159.50% and 124.10%, and a
 CAGR growth of 147.8%, 150.1% and 160.9%, respectively, over the last
 five years. We have a good visibility of a strong order book of 1,178 MW
 with a diversified and reputed clientele, and a land bank equivalent to
 4,402 MW.  Our 100 meter rotor diameter turbine is expected to be a
 game changer in the wind industry in India. With the expansion of our
 manufacturing facilities and project execution teams and with new
 product launches, we expect to be amongst the top of the industry
 players.
 
 Film exhibition Business:
 
 At Inox Leisure Limited (ILL), despite indifferent content, we were
 able to deliver relatively good performance essentially due to our
 focus on strengthening non-box-office revenues during the year.  Our
 Consolidated Revenues increased 17% to Rs. 10,168.10 Lakh from Rs. 8,688.3
 Lakh in FY2013-14. EBITDA increased by 1% from Rs. 12,196 Lakh in
 FY2013-14 to Rs. 12,277 Lakh, in FY2014-15, whereas Profit after Tax fell
 46% from Rs. 369.4 Lakh from FY2014- 15 to Rs. 200.4 Lakh in FY2013-14. We
 opened 9 properties with 27 screens during the year. We acquired the
 regional cinema chain Satyam Cineplexes, which has 9 properties and 38
 screens operational, and currently have a pipeline of 40 properties and
 180 screens.
 
 Wind Farm Business:
 
 Inox Renewables Limited (IRL) has a present portfolio of 233 MW
 installed capacity in three different States  Rajasthan, Maharashtra
 and Tamil Nadu. These projects fall under the annuity business with
 stable assured returns and rely on internal strength. IRL''s revenues
 have increased by 9% from Rs. 17,324 Lakh in FY2013-14 to Rs. 18,883 Lakh
 in FY2014-15. EBITDA increased by 12.9% from Rs. 15,566 Lakh in FY2013-14
 to Rs. 17,581 Lakh in FY2014-15, whereas Profit after Tax decreased by
 70.8% from Rs. 1,537 Lakh in FY2013-14 to Rs. 448 Lakh in FY2014-15.
 
 Concluding Remarks
 
 Our leadership team thrives on challenges in staying relevant in
 today''s dynamic business scenario. We continue to drive innovation and
 push for growth in each of our businesses, and stand form in our
 commitment to build a sustainable business, deliver value to all our
 stakeholders and serve India''s vibrant economy. Your Company has a
 great formula for growth, with a healthy outlook book across all its
 businesses and a strong balance sheet. We take this opportunity to
 thank our shareholders and our employees for their continuous support
 in our journey.
 
 Thank You,
 
 
 Vivek Jain
 
 Managing Director
Source : Dion Global Solutions Limited
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