Dear Shareholders,
It is always a pleasure to address you and share with you highlights of
the previous year as well as our plans for the future.
As you are all aware, the year was a significant year for the Indian
economy. After three decades, we saw the election of a single-party
majority government at the Centre. And what a difference in sentiments
can change make : almost immediately, there was a wave of confidence in
all sectors of the economy. The waves of optimism spread across the
globe, with India emerging as a promising growth hot-spot in an
otherwise lacklustre world economy. The International Monetary Fund has
called India the one bright spot in the global economy. And rightly
so, I think.
While global economy continued to remain subdued growing at 3.4 per
cent (IMF), on-going crisis in Greece and geo-political tensions in the
Middle East and Ukraine cast their long shadows of gloom and
uncertainty. China, which had experienced double-digit growth for the
last twenty years, slowed down its lowest growth rate since 1990, to
7.4 per cent. Rising labour costs and dwindling export demand are
expected to continue in China.
In contrast, the India growth story once again grabbed headlines
globally. GDP bounced back to 7.3 per cent aided by resurging demand.
Manufacturing is now a high-focus area for the government under its
flagship MAKE IN INDIA initiative. Inflation also largely tamed from
high of 8 per cent in the beginning of the fiscal year to sub 5 per
cent by April 2015, easing pressure on the precarious Current Account
Deficit situation.
For the petrochemicals industry, the later half of the year brought
unexpected shock in terms of falling crude oil prices, which fell to
their lowest since 2008-09. This caused a temporary aberration as
buyers deferred their purchases leading to inventory pile-ups and
pressuring margins. However, oil prices corrected in early 2015,
reviving the demand cycle in the last quarter of the fiscal year.
In spite of these upheavals,
IG Petrochemicals continued to move on its trajectory of GROWTH. The
additional capacity of 53,000 MTPA from PA3 boosted our performance.
For the year, our Net Revenue from Operations decreased marginally to
Rs. 1,188 crores from Rs. 1,204 crores in the previous year. However,
there was a remarkable improvement in our profitability.
Our Profit After Tax increased to Rs. 8.89 crores compared to Rs. 3.13
crores in the previous year, and our Cash Profit After Tax increased to
Rs. 46 crores for the year, compared to Rs. 21.16 crores for the
previous year.
In view of this, a dividend of Rs. 1/- per share (10 per cent) has been
proposed. We are hopeful to continue with this trend and pay consistent
dividends in the years to come.
As a responsible corporate citizen, we have always ensured that we
share our success with the societies and communities we live and work
around. During the year 2014-15, our CSR spend was Rs. 29.13 lacs at
3.27% of our Net Profit, focused to improve health and education
through various activities and initiatives.
As I look ahead, I am excited by the manifold growth opportunities on
the horizon. Underpinned by an overall surging economy, domestic demand
will be the single-most important driver of our future growth. Our
timely expansion of PA3 in 2013 has ensured that we continue to
dominate the PAN space in the country as the No. 1 manufacturers of PAN
with lowest cost and strategic location near Mumbai.
My sincere gratitude to all of you for your continued support. My
special thanks to our customers, bankers, investors, vendors and
employees.
Yours sincerely,
MM Dhanuka
Chairman
