Dear fellow shareholders,
2024-25 was a better fiscal for our Company (compared to 2023-24)
although not the best. The numbers below are on consolidated results basis.
Sales: 5,583 cr, hitherto highest, up by 18% (17% volume)
EBITDA: 1,022 cr, hitherto highest, up by 47%
EBITDA margin: 18%, higher by three percentage points (earlier best
27%)
PBT: 692 cr, higher by 54% (earlier best 882 cr) RoCE:14%, higher
by one percentage point (earlier best 34%) The Board has recommended a dividend of 250%
(2023-24: 200%) with a payout of 16% (2023-24: 15%). Meanwhile, team Atul is continuing
its pursuit to surpass the previous bests.
Global nominal GDP of US$ 110.55 t grew at 3.3% in 2024
(same as 2023) despite the ongoing economic, political and social
uncertainties.
India ranked fifth in GDP after USA, China, Germany and Japan
GDP of USA and China were US$ 29.2 t and US$ 18.8 t GDP of Germany and
Japan were US$ 4.7 t and US$ 4.1 t
GDP of India was US$ 3.9 t (soon expected to rank fourth)
GDP of India must grow at 7.8% to be a developed economy by 2047. Our
Company will contribute in its own small way in this endeavour.
There are three big changes consistently and significantly reshaping
the profile of chemical industry Technology Artificial intelligence (AI) and other
technologies
Sustainability E + ESG*
* Economic + Environmental, Social and Governance Tariffs Protection to
local manufacturers
These evolving trends reflect with time. We are identifying and
implementing relevant initiatives.
Global chemical industry grew at 3.9% in 2024, faster compared to 0.3%
in 2023. India ranked sixth (after China, USA, Germany, Japan and
South Korea)
Size of chemical industry of China and USA was US$ 2.4 t and US$
633 b
Chemical industry of Germany size of which was US$ 236 b grew by 2.5%
Chemical industry of Japan size of which was US$ 158 b de-grew by 1%
Size of chemical industry of India was US$ 220 b (thus there is a huge scope to grow)
Almost all manufactured products are enabled by chemistry. Our Company
is well placed to tap into the emerging opportunities.
The newer entities under our Company established with specific logic
are gradually improving their performance.
Atul Products (100% owned) increased sales from 65 cr to
353 cr. It decreased loss and expects to be PBT positive in 2025-26.
Sales of Anaven [50-50 joint venture (JV)], increased from 73 cr to
86 cr. It became EBITDA positive.
Atul Rajasthan Date Palms (74-26 JV) is still perfecting the
technology.
It expects to gradually better its performance.
Honourable Chief Minister of Gujarat, Shri Bhupendra Patel, unveiled
Valsad Institute of Medical Sciences on February 3, 2025.
The established entities under our Company have increased sales
although not always profit.
Atul Bioscience (100% owned) increased sales from 132 cr to
137 cr. It obtained USFDA for its Ambernath site.
DPD (98% owned) increased sales from ? 4.7 m to ? 5 m. It has the
potential to increase sales by 50%.
RACL (50-50 JV) achieved its highest sales of 167 cr and PBT of
36 cr. It too has a good scope to raise its sales.
Amal (49.85% owned), on a consolidated basis, achieved its highest
sales of 135 cr and PBT of 33 cr.
All the entities, subsidiary, JV and associate, are expected to
steadily grow and boost the consolidated performance of our Company.
Our Company and its subsidiary, JV and associate entities are
strengthening their financial position to remain resilient:
Our Company continues to remain debt-free. It had cash surplus of (as
is true for many other industries).
691 cr (net of borrowings) as on March 31, 2025.
Atul Bioscience decreased its total debt from 55 cr to 45 cr. Its
debt-equity ratio improved further, from 0.8 to 0.6.
DPD and Amal fully repaid their balance loans of 7 cr and 24 cr.
Both the entities were cash surplus as on March 31, 2025. the needtoaligntransformto bein
step RACL continues to remain debt-free. It was cash surplus as on March 31,
2025.
Atul Products (AP) and Anaven have debt of 151 cr and 127 cr. The
debt of AP is under the state Government incentive scheme.
One of the key objectives is to increase capacity utilisation and
realise further consolidated sales of 2,500 cr from the existing investment.
We continue to be guided by the five enduring and persistent mandates
articulated through the years: Achieve excellence in R&D, technology and manufacturing
Pervade technology (AI and other) across all functions (Steadily)
enhance people productivity; remain lean on fixed cost Conserve cash (measure performance
by free cash flow)
Work closely with customers to identify big ideas, but start small We
are identifying and implementing multifarious initiatives on an ongoing basis.
Valsad Insititute of Medical Sciences
While one of the key objectives is to raise sales from the investment
made, the other is to sow seeds for future growth through the following: Debottlenecking
and expanding existing products and product groups Growing downstream and upstream
products Entering related products and product groups Introducing retail products and
formulations Pursuing unrelated products, product groups and businesses (in a small way)
As of now, our Company is executing RoI projects of 243 cr and
non-RoI projects of 206 cr (warehouse, other infrastructure, etc).
Atul Foundation received 15 cr from our Company, its subsidiary, JV
and associate entities and 14 cr from the Government, corporates and individuals.
Commenced GMDC Atul Vidyalaya School in Kadipani, Chhotaudepur
Conducted 63 eye camps, covering 19,531 patients Facilitated 28,308 people to access 20
schemes of the Government We continue to nurture the spirit of social service as our
Company grows its businesses. Please visit www.atulfoundation.org to know more.
Our Company has a work environment where people are valued and team
members are professionally challenged to give their best. We are focusing on the
following:
Developing team members (for higher and wider responsibilities)
Enhancing performance focus
Recruiting young talent and recruiting right
Strengthening leadership pipeline in higher management Upgrading and
digitalising HR processes
Our Company has people of diverse nationalities American, Brazilian,
Chinese, English, Nepalese and of course Indian working cohesively and learning together.
There were changes in the Board to remain in sync with the mandate from
the Companies Act 2013 and Securities and Exchange Board of India: Mr Mukund
Chitale, Ms Shubhalakshmi Panse and Mr Baldev
Arora retired as Independent Directors (IDs) after completing 10 years
each. On behalf of the Board and my colleagues, I thank Mr Chitale, Ms Panse and Mr
Arora for their critical analysis, constructive approach and constant encouragement.
There are three ways to solve a problem. First the bad way – is
when we think we solved the problem but actually we have only shifted it. Two still the
bad way – is when we think we solved the problem but actually we have deepened it.
And three the better way – is when we have not only solved the problem but also
solved a class of problems. Our endeavour is to solve the problem the better way.
Ms Padmaja Chunduru, former Chairperson of Indian Bank and Managing
Director and CEO of National Securities and Depository joined the Board as an ID.
On behalf of the Board, I welcome Ms Chunduru. We are proposing to add
two more IDs with commercial and techno- commercial insights.
Mr Vivek Gadre, President, Corporate Strategy, was appointed as a
Whole-time Director to succeed Mr Bharathy Mohanan, Whole-time Director, who retires on
May 25, 2025.
In order to maintain continuity and further strengthen the management,
we are also planning to induct two more Executive Directors on the Board.
We have further enhanced this second integrated annual report and hope
it will help you to understand how we are developing our Company. ESG action reporting
Risk management reporting Existing content restructuring Our Company received ICAI award
for Excellence in Financial Reporting
2023-24 (Manufacturing and Trading Sector).
We are grateful to all our stakeholders:
Customers for pushing us to innovate and improve every day Employees
for making our workplace diverse and dynamic Society for offering us an opportunity to
serve Shareholders for supporting our efforts to create value
We are here to give back more than we take.
Our dreams are surging bigger and better We will work relentlessly to
build capability and enhance performance as we enter 2025-26 and beyond. We will
co-create our vision and strategy responsibly We will prioritise long-term value as
against short-term gains
We will balance financial and social returns
Our purpose and Values will guide us as we continue our path into the
future, convinced that chemistry is vital and is connected with almost anything.
| Sincerely, |
| Sunil Siddharth Lalbhai |
Chairman and Managing Director |