Dear Shareholders,
I trust this message finds you well. It is with immense pride that I
share with you the progress DCW Limited has made over the past year. This period has been
one of transformation and resilience as we have navigated through an evolving market
landscape. Our unwavering focus on innovation, strategic expansion, and prudent risk
management has enabled us to not only meet but exceed the expectations of our
stakeholders.
Adapting to Market Dynamics
The specialty chemicals sector continues to experience significant
shifts, with evolving customer demands and new market trends shaping the industry's
future. At DCW Limited, we have strategically positioned ourselves to harness these
trends, ensuring that we remain at the forefront of innovation. Our customer-centric
approach has been pivotal in fostering strong relationships, allowing us to anticipate and
respond to the needs of our clients effectively. This adaptability has been key to
maintaining our competitive edge and driving our success forward.
Our commitment to innovation is evident in the strides we have made in
expanding our product portfolio. The development of our specialty chemical products has
been instrumental in enhancing our market share and fortifying our growth trajectory. We
remain dedicated to continuous innovation, ensuring that we not only meet but set the
standard for excellence in the industry. By leveraging cutting-edge technology and
anticipating future market demands, we are confident in our ability to sustain our
momentum and oachieve long-term success.
Strategic Growth and Expansion
Expanding our global footprint has been a critical focus this year. We
have successfully identified and penetrated new markets, further solidifying our presence
in key regions. These strategic evenue r expansionshavenotonlydiversified our streams but
have also strengthened our market position, enabling us to capitalize on emerging
opportunities with greater agility and confidence.
Proactive Risk Management and Financial Stability
At DCW Limited, we understand the importance of proactive risk
management in sustaining growth and stability. Our comprehensive risk management framework
has enabled us to navigate the complexities of the global market with resilience,
safeguarding our long-term success. Additionally, our debt refinancing initiatives from
the previous financial year has also significantly improved our financial health,
positioning us more favorably in the marketplace and enhancing our access to
cost-effective financing options.
As we look to the future, we are excited about the opportunities that
lie ahead. Our strengthened ial position, combined with our focus on financ innovation and
sustainability, sets a solid foundation for continued growth and value creation. We remain
committed to delivering on our promises and driving sustainable success for our
shareholders.
Financial Resilience
Recognizing the importance of optimizing our financial resources, we
undertook a comprehensive debt refinancing exercise in FY23.
This initiative had aimed to make our debt less expensive and more
cash-flow-friendly, ultimately strengthening our financial health. Through careful
analysis and strategic planning, we had successfully refinanced our debt, enhancing our
overall financial stability and us in a favorable position to navigate economic
uncertainties through FY24, and to capitalize on growth opportunities going into the
future.
Financial Performance
Our journey through this year has been marked by strategic shifts and
resilient growth, a testament to our steadfast commitment to excellence in every facet of
our business.
The re-rating process during FY23 continues to strengthen DCW Limited
and reflects our improved financial health through complex market dynamics in FY24.
In the sphere of business segments, our performance paints a mosaic of
adaptability and strategic foresight.
The Soda Ash segment, for instance, witnessed a decline in revenue to
INR 2,359.06 million in FY24, down from INR 3,620.81 million in FY23. The Caustic Soda
segment saw a significant drop to INR 5,611.48 million from
INR 9,561.13 million. PVC also experienced a reduction, reaching INR
6,913.60 million from INR 9,279.26 million. However, the SIOP segment exhibited growth,
registering INR 1,648.54 million, up from INR 1,538.66 million, and C-PVC achieved INR
2,032.90 million, slightly down from INR 2,189.77 million.
For FY24, our revenue stood at INR 18,715.9 million, a decline from the
previous year's INR 26,338.0 million. This was reflected in our gross profit of INR
2,167.3 million, translating to a gross margin of 11.6%. Other expenses and income
harmonized to yield an EBITDA of INR 1,937.9 million, with an EBITDA margin of 10.4%.
We also recognize the rise in depreciation and financial costs that led
to a pre-exceptional item profit before tax of INR 264.9 million. After judiciously
accounting for exceptional items, our
Profit Before Tax (PBT) for FY24 stood at INR
253.4 million. Taxes amounting to INR 96.8 million tempered
ourfinancialoutcome, resulting in a Profit After Tax (PAT) of INR 156.6 million and a
PAT margin of 0.84%.
Our commitment to creating value for you, our esteemed shareholders, is
a driving force behind every decision we make. The Basic Earnings Per Share (EPS) of 0.53
for FY24 reflects our resilience and prudent financial management whilst navigating a
dynamic market evironment.
Future Outlook
Looking ahead, DCW Limited is poised to explore new horizons and
leverage emerging trends to fuel our growth. We are committed to staying at the forefront
of technological advancements and market innovations. Through continuous research and
development, we aim to introduce innovative products that address evolving customer needs
and industry challenges.
Sustainability and environmental responsibility are integral to our
future plans. We are actively investing in eco-friendly technologies and processes to
minimize our ecological footprint. By embracing
As we embark on this exciting journey, we remain committed to upholding
our core values of integrity, transparency, and ethical business practices.
sustainability practices, we not only contribute to a better future but
also meet the growing demand for environmentally conscious solutions.
Furthermore, digital transformation is a key focus area for DCW
Limited. We are harnessing the power of data analytics, artificial intelligence, and
automation to streamline our operations, enhance efficiency, and improve decision-making
processes.
This digital journey will empower us to deliver superior customer
experiences, optimize resource allocation, and unlock new growth opportunities.
As we embark on this exciting journey, we remain committed to upholding
our core values of integrity, transparency, and ethical business practices. Our dedicated
team of professionals, coupled with our robust corporate governance framework, will
continue to drive our success and ensure the highest standards of corporate
responsibility.
In conclusion, I would like to express my gratitude to each and every
one of you for your unwavering support and confidence in DCW Limited. The past year has
been a testament to our collective efforts and resilience. As we move forward, we are
excited about the future possibilities that lie ahead and remain committed to delivering
sustainable growth and value creation.
The past year has been transformative for DCW Limited, and it is
through your continued support that we have achieved considerable progress.
As we look ahead, we remain confident in our ability to navigate the
future with resilience, embrace market trends, and capitalize on emerging opportunities.
We are excited about the possibilities that lie ahead and are committed
to delivering on our promises.
Thank you once again for your trust and partnership.
Warm regards,
Pramod Kumar Jain
Chairman & Managing Director