In 2018-19 Shanthi Gears Ltd ( SGL ) continued its growth trajectory. Sales grew by 14% to Rs, 243 Crores and Profit Before Tax grew by 28% to Rs,42 Crores. There was specific focus on a few sectors that helped us grow the order load in the domestic market. Your company intensified its efforts in the overseas markets. The results of these marketing efforts would be seen in the coming years.
SGL deepened its relationships with the customers by a number of Customer Connect Programmes across sectors and geographies thereby enhancing its brand image.
Our participation in national and international Fairs and Exhibitions have given us and our capability much visibility. We are working on a number of programmes for import substitution with the customers. SGL continued to execute prestigious orders in the gear box servicing segment. Your company has established itself as the most reliable service provider in servicing critical Gear Boxes for various industries. Our R & D and Engineering functions have been adequately resourced to take care of the emerging product range and technologies.
During the year under review, your company sharpened its focus on productivity and efficiency parameters of all resources. Return on Capital Employed and Free cash flow were closely monitored and improved. The plants executed much higher levels of orders than the previous year by sweating the assets and making marginal investments in botdeneck equipment’s. We continue to procure state of the art precision equipment’s for critical applications. Dedicated teams with IT support are constantly striving to improve servicing of customer orders.
I thank all my fellow Board members for their timely inputs and support to the Company. I welcome Mr. Vellayan Subbiah and Mr. Krishna Samaraj to the Board. They bring with them rich experience that would help them provide guidance to the Company. We look forward to their valuable inputs in the coming years. I would like to thank Mr. Rajiv Narayanamoor-thy for his contribution to the Company as CEO. He set the course for SGL to deliver sustainable profitable growth. On behalf of the Board of Directors I thank him for the leadership provided by him for over 3 years he has been with the Company and wish him well in his future endeavors. I welcome Mr. Karunakaran, the new CEO and wish him all the best to take this Company to new heights. I would like to thank our diligent and committed employees around the country for continuing to provide the highest level of service to our clients.
I thank each of our stakeholders be it customers, suppliers, vendors, bankers and shareholders for their continued support for which my colleagues and I are most grateful. I would like to express my gratitude to all our stakeholders for their strong confidence in SGL.
Sincerely, L Ramkumar