Strong, Resilient and Future-Ready
Dear Shareholders,
I am pleased to present the annual report of your
Company for the financial year (FY) 2022-23.
During the year, the global economy witnessed a widespread slowdown
along with high inflation. The war in eastern Europe and increasing interest rates
dampened the outlook for people and businesses at large. Steep increases in food prices
hit vulnerable populations across the globe. Recessionary trends began to emerge in many
economies. Nevertheless, the Indian economy continued to show robust growth buoyed by high
investment activity and private consumption. The favourable environment supported top-line
growth of your Company in domestic markets during the first quarter of the year. However,
a steep rise in raw material costs coupled with a continuing shortage in containers
affected our margins, and led to an increase in inventories. All these setbacks to revenue
growth were substantially overcome from the second quarter onward. While recessionary
pressures in Europe and USA affected the demand for some of our products, our overall
performance by the end of the year was satisfactory despite the external challenges.
Among the highlights of our performance were a massive penetration into
the aquaculture market in South America and spectacular growth in our geosynthetics
business.
A large part of the breakthrough in South
America was achieved through Sapphire X18, your Company's ingenious,
tailor-made solution to the problem of sea lions attacking salmon fish-farmers' nets. In
comparison to traditional solutions, X18 stands out for its efficiency and ease of use,
giving benefits in terms of operational ease, cost savings, and safety.
Your Company's geosynthetics business recorded increased momentum of
growth, higher margins and a higher volume of large-value orders, all leading to a very
impressive return on capital employed (ROCE).
Your Company continued to invest heavily in new product development,
and several of its recent innovations garnered high interest. Our manufacturing plants
responded well to the challenges of meeting customer demand, and notched significant
improvements in productivity and cost savings. Our inventory management was excellent, and
we returned to our track record of healthy cash generation.
I am also happy to inform you that for the sixth year in a row your
Company was ranked among India's top manufacturing companies as a 'Great Place to Work'.
Our senior management team was strengthened with the infusion of some highly experienced
professionals, and we also expanded our overseas teams.
Your Company registered total revenue of
Rs. 1305.55 crores for the year ended 31st March 2023, an increase of
9.77% over the previous
year. Consolidated operating earnings before
interest, taxes, depreciation and amortization
(EBITDA) increased by 3% to touch Rs. 230 crores. Consolidated profit
before tax was Rs. 223.21 crores, an increase of 3.13% over the previous year. The
consolidated return on invested capital (ROIC) was 47.2%. Your Board of Directors has
declared an equity dividend of 35% amounting to Rs. 3.50 per share.
Your Company remains a financially robust organization with strong cash
flows, a diversified portfolio of value-added products, proven expertise in
customer-focused innovation, and a high weightage in the food sector, which has a
relatively inelastic demand profile. These attributes give your Company the strength and
resilience to stay on the path of continuous growth and profitability even in adverse
conditions.
Your Company is also committed to a sustainable environment, and
demonstrates this internally and externally, through its manufacturing operations and
product offerings.
Looking at the future, we have firmed up several promising plans. While
farmed salmon is a top-selling species globally, and meeting the needs of the salmon
aquaculture industry will continue to be one of our priorities, we will also be reaching
out intensively to potential customers who farm other fish species. In FY 22-23 itself we
gained such customers in several countries of Asia and America, as well as a breakthrough
order from Africa. Our portfolio for the sports segment, which witnessed sluggish growth
in the year under review, is being expanded. International sales, which constitute the
major part of our total revenue, will be bolstered with aggressive forays in south Europe
and other geographies.
I look forward to your support in our exciting
journey ahead.
| V. R. Garware |
| Chairman & Managing Director |