<dhhead>MESSAGE FROM OUR MANAGING DIRECTOR</dhhead>
Dear Stakeholders,
I am delighted to present the Integrated Annual Report of Gujarat
Fluorochemicals Limited for the financial year
2022-23. It is with great pride and enthusiasm that I share the
remarkable journey of GFL amidst the challenges and opportunities posed by the current
macro-environment. The global macro-environment in the year 2022-23 was marked by
significant challenges, including geopolitical tensions and high inflation. Despite these
obstacles, the world witnessed a positive trajectory following the recovery from the
COVID-19 pandemic. In response to inflationary pressures, central banks raised interest
rates, which inevitably impacted growth prospects. However, amid these testing
circumstances, I am pleased to announce that GFL showcased exceptional performance. Our
profit grew by an impressive 71% compared to the previous year, a testament to our
resilient spirit and commitment to excellence.
At GFL, we have remained strategically positioned to navigate the
complexities of the macro-environment successfully. As a leading global manufacturer of
fluoropolymers renowned have carved a niche in the market. Our unwavering vision to
produce high-quality grades and secure customer approvals has been the driving force
behind our accomplishments.
Furthermore, we have strategically aligned ourselves with industries
experiencing significant growth, such as Electric Vehicles (EV), Solar, 5G, Semiconductors
and Green Hydrogen. These sunrise sectors heavily rely on fluoropolymers and GFLs
offerings have become indispensable components in their advancements. Additionally, the
global shift towards the China+1 strategy has presented new opportunities for
us to expand and fortify our growth prospects in various markets especially in our EV
offerings.
The strategic imperative guiding GFL during this period revolves around
targeting opportunities in downstream industries. Operating across three key verticals
Fluoropolymers, Fluorochemicals and Bulk Chemicals we recognise the immense potential of
our fluoropolymers segment. As such, we have dedicated substantial capital expenditures to
enhance our capacity in this crucial area. Contributing nearly 50% of our total revenue,
our fluoropolymer portfolio includes essential offerings like PTFE, PVDF, FKM, PFA and
Micropowders, which are irreplaceable in numerous industries.
The EV industry holds immense growth potential and we remain committed
to meet its specific demands with our fluoropolymer and battery chemicals in particular,
is becoming integral to the EV sectors advancements. Furthermore, the growth of FKM
has been boosted by increased blending of ethanol and stricter emission regulations in the
automotive industry.
Additionally, the fluoropolymer PFA is projected to experience
significant growth due to its widespread application in semiconductor manufacturing, an
industry witnessing substantial global capital expenditure. With a solid foundation in
place, we are poised to capitalise on exponential growth opportunities across all our
verticals. Turning to our financial growth in the year 2022-23,
I am pleased to report that it has been remarkable.
Our consolidated revenue reached Rs. 5,685 Crores, representing an
impressive YoY growth of 44%. Our consolidated EBITDA stood at Rs. 2,047 Crores,
reflecting an extraordinary 71% YoY growth, with EBITDA margins at 36%. Consolidated PAT
reached Rs. 1,323 Crores, showing a substantial 71% increase. Furthermore, our Return on
Capital Employed (ROCE) improved to 34.07%, and our Return on Equity (ROE) increased to
27.14% in the Financial Year 2022-23, compared to 24.46% and 20.1%, respectively, in the
Financial Year 2021-22. These financial achievements validate our progressive strategic
approach and commitment to achieving our organisational aspirations.
Another milestone development is our PVDF solar film project, scheduled
for commissioning in the upcoming financial year. This integrated PVDF manufacturing
facility will effectively cater to both domestic and international markets, further
solidifying our position as a global leader in fluoropolymers.
As we continue to evolve, we are proactively developing New-Age
Products that align with the changing landscape of Hexafluor
industriesandtechnologies.OurLithium (LiPF6) project and our battery salt is nearing
completion and we anticipate to commission it in the Financial Year 2023-24. Subsequently,
we will move on to sample distribution, followed by a validation period of approximately
three months before the commercialisation of LiPF6. This project holds immense
significance in the growing field position GFL as a key player in this critical sector.
In addition to the LiPF6 project, we are placing significant emphasis
on developing Proton Exchange Membrane (PEM) technology used in hydrogen fuel cells and
electrolysers. We are excited about the growth prospects this technology presents and our
dedicated efforts are focussed on its successful development and integration into the
market.
At GFL, sustainability is deeply ingrained in our business philosophy
and serves as a driving force for our future growth. We are committed to Enviornmental,
Social and Governance (ESG) and place significant importance on stakeholder engagement,
commitment and transparency. Our sustainability efforts align with the Sustainable
Development Goals (SDGs), and we continuously strive to improve our ESG performance,
ensuring we remain at the forefront of sustainable business practices.
As part of our sustainability approach, we embrace technology as an
enabler, promoting safety and well-being by minimising human and machine interventions.
Our commitment to green chemistry and circular economy principles has driven global growth
and provided unique opportunities for transitioning to a sustainable future. We are
dedicated to designing and developing products that meet global standards while ensuring
the judicious use of natural resources. Our research focusses on low-carbon pathways to
reduce product carbon footprints, enabling us to remain competitive and assist our
customers in their efforts to reduce greenhouse gas emissions.
We deeply value our ecosystem and stakeholders and our energy storage
and will approach to sustainability reflects this. As a responsible corporate entity, we
actively support the United Nations Sustainable Development Goals (SDGs). We engage and
collaborate with our supply chain partners to reduce emissions, promote human rights
practices and contribute to community development, fostering inclusive growth. Our
commitment to environmental protection is evident in our efforts to reduce dependencies
and produce green products that drive sustainable growth and benefits throughout the
supply chain. As we progress in reducing our carbon footprint, we will establish more
stringent sustainability targets to support the global agenda in combating climate change.
Our progress thus far motivates and encourages us to foster
sustainability as an integral part of our organisational culture. Looking ahead, we
envision a promising outlook for GFL in both the near and long term. We have successfully
transitioned from sunset industries to burgeoning sunrise industries, positioning
ourselves for significant growth in the EV sector. The successful commissioning of our
first battery chemicals plant will further fuel our growth prospects, paving the way for
further expansion. Additionally, our fluoropolymer offerings will continue to sustain our
growth, reinforcing our position in the market.
Our vision extends beyond financial success. We aim to be a global
leader in advanced materials while contributing positively to society and the environment.
Sustainability will remain a driving force in all our endeavours and we will continue to
invest in research and development to create innovative and sustainable solutions. As we
embrace technology and innovation, we are committed to maintaining operational efficiency
and nurturing a culture of excellence, diversity, and inclusivity.
On behalf of the entire GFL team, I extend my heartfelt gratitude to
our stakeholders for their continued trust and support. Our journey towards growth and
sustainability would not be possible without your unwavering commitment.
Warm regards,
Vivek Jain
Managing Director