I am thrilled to share that your Company had a very successful first year of listing and has been making significant progress towards fortifying its identity as the market leader in the Telecom Tower manufacturing sector. We, at Salasar, are immensely humbled and grateful to each one of you for showing utmost trust and confidence in our Management, business model and our strategy in this first year. In a very challenging global business environment, the IPO was subscribed 273 times, something which happened for the first time in history.
At Salasar, we understood that at a time when the domestic market conditions were showing signs of revival, it would be prudent to strengthen our capabilities to cater to the vast Indian opportunities. Consequently, our superior growth numbers testify the relevance of our strategies, which are closely aligned to external opportunities and the government''s key policies. The Company recorded sales growth of 29% from Rs. 384 crores in FY 2017 to Rs. 495 crores in FY2018. This, coupled with innovative cost engineering measures to drive down costs, facilitated a 40% growth in operating EBITDA from Rs. 39 crores in FY2017 to Rs. 54 crores in FY2018. The Company registered a 59% growth in net profit from Rs. 19 crores in FY2017 to Rs. 30 crores in FY2018.
- In the last few years, India is witnessing an increased data demand and at this cusp of data revolution, we believe that the time has arrived for Monopoles towers to gain prominence in the growth of the Telecom sector. With new entrants and increasing proliferation of smart phones among the Indian masses, mobile data will grow exponentially, requiring a significant number of towers over the next few years.
The past couple of years have witnessed significant progressive policy-level changes and effective implementation of directives in sectors in which we are present. It was the government''s way of acknowledging that economic growth was hinged on the adequate development of infrastructure. This approach has delivered tangible results, and the potential for progress going forward is immense.
Our Company has also embarked on the growing long-term opportunity coming from monopoles. India, as of now, is largely a lattice tower market. However, the increasing challenges with respect to land acquisition present a strong case for the adoption of monopole towers. Salasar tested its first transmission monopoles during the year, qualifying itself for more transmission monopoles projects.
Similarly, when we talk about infrastructure, Indian Railway network is among the world''s largest rail networks and, the Government continues to build it further. It plans to commission new Railway lines connecting untapped places and has committed investments towards capital and development expenditure of railways. This presents a significant opportunity for Salasar Techno Engineering.
Looking ahead, we see a prosperous future for the country, particularly the infrastructure sector, which will benefit the Company. Our success so far has been driven by our most important asset - our team! I would like to take this opportunity to thank each and every member of the Salasar Techno Engineering family. I would also like to thank our Clients, Creditors, Banks, Financial Institutions and other Stakeholders, without whose patronage we could not have been where we are.
Chairman and Managing Director