Dear Shareholders,
As we close the books on FY2024, I am proud to report that Goa Carbon Limited has once
again adeptly navigated the complexities of a dynamic business environment, delivering
exceptional results. Despite challenging economic conditions, our Company has not only
weathered the storm but also achieved yet another record-breaking financial performance.
For over five decades, Goa Carbon has maintained a steadfast presence in the
manufacturing sector, guided by a deep commitment to accountability and responsibility.
Our focus extends beyond profitability to encompass the well-being of our investors,
employees, customers, and the broader society. We recognise the profound responsibility
that comes with being a leader in our niche sector—a responsibility that drives us to
create lasting value for all our stakeholdeRs. This ethos is reflected in our
partnerships, business strategies, and initiatives— all aimed at building a
sustainable future for everyone involved.
Indian and Global Economy
As global challenges such as climate change and social inequality intensify, we are
doubling down on developing models for sustainable and responsible growth. Our efforts
include exploring comprehensive 'total carbon solution' strategies and pioneering
cutting-edge innovations to meet our customers' evolving needs.
The recent past has been fraught with significant challenges, including geopolitical
turbulence, military conflicts, rising inequality, environmental concerns, and supply
chain disruptions. Despite this volatile environment, Goa Carbon has shown remarkable
resilience and adaptability.
In the context of the Indian economy, we see substantial growth prospects driven by
governmental policies aimed at self-reliance and industrial development. India's push for
infrastructure development and urbanisation offers immense opportunities for our products.
Initiatives like 'Make in India' and the focus on reducing carbon emissions align with our
sustainability goals and strategic objectives.
Our operating environment is shaped by geopolitical uncertainties and shifting
stakeholder expectations. In response, we are leveraging our manufacturing strengths to
deliver innovative, sustainable products and solutions that meet the demands of the
future. By staying agile and forward-thinking, we aim to transform these challenges into
opportunities for growth and development.
The Growing Aluminium Industry in India
The aluminium industry, the largest consumer of calcined petroleum coke, is crucial to
India's push for self-reliance. As sustainability and carbon emission reduction become
central to industrial progress, aluminium is emerging as a key material due to its
environmentally friendly properties, even surpassing steel.
India's economy is on a robust growth trajectory, with rising consumption levels. The
country's per capita aluminium consumption is 3.1 kg compared to the global average of
12.2 kg and 34.9 kg in China. This disparity presents significant growth opportunities.
By 2033, aluminium demand in India is projected to double from 4.5 Million MT to 9
Million MT, driven by increased demand from OEM manufacturers, the electric mobility
sector, and other emerging industries. This surge in demand will create new opportunities
across diverse sectors, including automotive, infrastructure, pharmaceuticals, and
renewables.
With India's urban population expected to exceed 600 million by 2036, infrastructure
development and consumer spending are set to rise. As a leading supplier of calcined
petroleum coke to the aluminium industry, Goa Carbon is well-positioned to capitalise on
these growth opportunities.
A Successful Year for Business and the Way Forward
FY2024 has been a year of significant progress for Goa Carbon Limited. We strategically
developed and executed operational plans to meet our customers' requirements, resulting in
satisfactory topline performance and a strong bottom line. Our concerted efforts to
enhance efficiencies, build strong customer relationships, maintain consistent quality,
and uphold our commitment to excellence have paid off.
In a year marked by geopolitical stress and macroeconomic volatility, Goa Carbon's
robust performance stands out. We strengthened our financial foundation, underscoring our
operational efficiency and fiscal health.
Despite a decline in sales revenue from Rs. 1,364.36 Cr in the previous year to Rs.
1,057.31 Cr, the company delivered a strong financial performance. Profit Before Tax (PBT)
increased from Rs. 108.23 Cr to Rs. 115.71 Cr, and Profit After Tax (PAT) rose from Rs.
80.75 Cr to Rs. 85.50 Cr.
This performance was driven by lower input costs and various cost optimisation
initiatives. In recognition of our historic performance, the Board of Directors has
recommended an all-time high dividend of 200%, inclusive of the 100% interim dividend
already declared. Goa Carbon is committed to driving growth by fostering closer
relationships with our customers while enhancing operational efficiency and
sustainability. Our team has done an outstanding job in meeting growth demands with
reliable and efficient operations, ensuring strong margins and profitability.
In today's dynamic landscape, characterised by fluctuating market conditions, changing
regulations, supply chain disruptions, and technological advancements, Goa Carbon has
adopted a proactive approach to safeguard our operations while identifying and
capitalising on emerging risks and opportunities.
One of the key challenges we face is the evolving regulatory landscape. Recent change
in regulations from the Ministry of Environment, Forest, and Climate Change (MOEF&CC),
the Commission for Air Quality Management (CAQM) guidelines have significant importance
for our operations. We are committed to mitigating regulatory and business risks, ensuring
full compliance with all applicable regulations.
Commitment to Sustainability
Our commitment to sustainability is unwavering. We continue to focus on reducing our
carbon footprint, optimising energy consumption, and adopting environmentally friendly
practices. We have made significant strides in waste reduction, resource efficiency, and
the sustainable operation of our facilities. I am pleased to state that our executive
leadership team is actively exploring best-in-class operational practices to further
enhance productivity and optimise costs.
In a bid to stay ahead of the curve, Goa Carbon Limited has recently rolled out
'gcarb+,' a groundbreaking product set to revolutionise the recarburiser and carbon
additive sectoRs. This launch is a feather in our cap, underscoring our commitment to
quality, sustainability, and industry leadership. 'gcarb+' promises top-notch performance
derived from premium global raw materials, ensuring low sulphur content to reduce
emissions and support environmental sustainability.
Our Environmental, Social, and Governance (ESG) initiatives are integral to our efforts
to preserve the environment and uplift local communities. As part of our afforestation
efforts, we have planted thousands of trees at site locations, achieving over 40%
cumulative green cover across 47 acres of our land.
Goa Carbon Limited (GCL) has partnered with BITS Pilani, Goa Campus, to advance its ESG
efforts. The collaboration began with a study validating that GCLs emissions are within
environmental norms and has grown into a long-term agreement focusing on optimising plant
operations through computational fluid dynamics (CFD) models, ensuring efficiency and
sustainability.
We are committed to enhancing safety systems across all our plants by improving
training effectiveness and conducting comprehensive safety audits. Our dedication to
social change encompasses health and safety, human rights, and community development. By
maintaining continuous dialogue with stakeholders, we ensure our strategy aligns with
their concerns and expectations, as well as our sustainability vision and regulatory
requirements. These insights are regularly reported to the Management, CSR Committee, and
the Board to ensure alignment with our broader ESG goals.
Corporate Social Responsibility
As a leading member of the House of Dempos, Goa Carbon Limited sets a high standard for
Corporate Social Responsibility (CSR) in the region it operates. Our commitment to CSR
extends beyond mere compliance. It is rooted in a sincere dedication to creating a lasting
positive impact on communities and the environment.
In FY2023-24, we launched several impactful CSR projects, reflecting our unwavering
dedication to education, women empowerment, sports, and culture. With community
development investments exceeding Rs. 100 lakhs, we remain steadfast in our commitment to
fostering a brighter and more sustainable future for the society in which we operate.Key
initiatives included the Dempo Vishwa Gramshala (DVG) programmes at Kasarpal and Saal
Schools, where we provided essential infrastructure, intensive teacher training, and
critical support to government primary schools in Goa. These actions underscore our focus
on enhancing educational outcomes and empowering local communities.
In addition, we partnered with esteemed implementing agencies such as Bansidhar &
Ila Panda Foundation (BIPF), GPR Strategies and Solutions Private Limited, and Studeasy
Foundation to drive projects in Goa, Paradeep, and Bilaspur. One standout initiative,
'Project Unnati,' guided by BIPF, has garnered significant success in Odisha by empowering
rural women through financial, livelihood, and life skills training, including WASH,
nutrition, and reproductive healthcare education.
Gratitude
I would like to express my deepest gratitude to all our investors, shareholders, and
stakeholders for their enduring trust and support. I am thankful to the board members for
their consistent commitment, engagement and encouragement in our journey.
The remarkable achievements of FY2024 are a testament to the hard work and dedication
of our exceptional team. Their contributions have been invaluable, and I extend my
heartfelt appreciation to every employee. Together, we will continue to grow and create
sustainable value for all our stakeholdeRs.
Best wishes,
Shrinivas V. Dempo
Chairman
Panaji, Goa
1.08.2024