LETTER TO SHAREHOLDERS
Dear shareholder,
The year 2020-21 was challenging for each one of us. The COVID-19 pandemic had a
significant impact on lives, livelihood and businesses. It disrupted several lives and
dealt a blow to the economic health of the nation. Operational challenges mounted due to
restricted movements and disrupted supply lines during the first two months of the last
financial year. As the second wave of the pandemic unfolds and with predictions of a third
wave in the offing, our focus continues to be on our people's health & safety,
ensuring uninterrupted supplies, meeting demand, caring for the communities in which we
operate and protecting our business model.
Our performance during the year gone by demonstrates our ability to adapt to change and
our responsibility towards each stakeholder. Amidst trying times, we delivered robust
results, even when the economy witnessed a massive slowdown. We maintained our status as
market leaders due to the resilient efforts of our team to consistently produce quality
products.
As compared to FY20, our FY21 revenue from operations reduced from H535 Crore to H453
Crore while our Net Profit increased from H49 Crore to H58 Crore. The rise in profit can
be attributed to favorable raw material prices, increased realisations and better
negotiations related to extra neutral alcohol (ENA). The sales in Q1 were affected most as
April and May 2020 were marked by a complete lockdown. Q2 saw normal momentum even as our
plant went through a voluntary shut down for seven days as a precautionary measure due to
rising Covid cases. In Q3, the company achieved its highest ever quarter sales; the plant
reached 100% capacity utilisation with the company commencing sales of IMFL products in
Uttar Pradesh. Finally, in spite of sluggish demand, the company was able to match its
sales in Q4. A focus on cost control and working capital management remained a priority
during the financial year.
At the end of the financial year, the company embarked on a much-awaited expansion cum
diversification where it will be possible for the new capacity to be used to manufacture
and sell ethanol to oil producing and marketing companies apart from liquor products. We
are committed to our core focus in delivering value-added products and expanding our base,
widening our geographical presence.
I would like to take this opportunity to express my gratitude to our Board of
Directors, the management team and all our employees for their commitment and dedication
to our organisation, especially during this unprecedented crisis. Most importantly, I
would like to thank our shareholders, customers and suppliers, for the overwhelming trust,
support and confidence.
Looking ahead, we remain confident and committed in carrying forward toward our legacy
and fulfil our obligations, resulting in a better future for our people and communities.
Stay safe, stay healthy, Warm regards,
Tushar Bhandari
Whole Time Director