“Character is what you are in the dark. Though these lines were said by Dwight Moody several years ago, they are very much applicable to us. Amidst multiple challenges that we faced in the past two years, we continued to remain firm. Our team displayed grit and determination to counter challenges and move ahead. This is our character.” ”
FY 2018-19 was a challenging year for us both due to external context and some internal challenges. Externally high volatility in the crude prices, currency fluctuations and disruption in supply of key raw materials led to surge in costs and impacted our margins. Internally, we faced teething problems in stabilizing the new H-Acid line due to quality and yield issues, leading to one-off loses. But as always we remained steadfast. We responded with courage and determination to counter the challenges. While the external factors were beyond our control, we put in more efforts to retain our existing clients and focused on expanding geographic footprint and adding new clients. This led to win seven new accounts. Though these new relations have marginal share, we expect to grow business in the future.
The impact of our efforts is evident in the 9% surge in our sales volume to 9,562 metric tonnes. This also exemplifies that the demand of our products continues to remain intact. Our revenue growth at 22% to H322.9 Crore was higher as China environmental crackdown factor continues to be persist leading to lower supply in the market and hence higher realization. The prices are expected to stabilize in the coming fiscal. Coming to profitability, our EBITDA for the year ended declined 17% to H34.5 Crore and PAT declined 26% to H22.6 Crores due to the reasons stated above. For price increase, we usually take a lag of one to two quarters to pass it on and hence the margins got impacted. something fundamental that we possess – strong resolve and persistence. And this are not just words for us. They are reflected in our character across all decisions that we take.
After the environment crackdown episode in China, globally the chemical industry is witnessing a scenario where demand for quality and environmentally compliant dye and intermediates is surpassing supply. We expect this scenario to persist for sometime. It will contribute to growing demand for products from India which is\ the most competitive markets in the world owing its low-cost advantage and quality. This is expected to drive export market of domestic dyes industry. The industry will also benefit from rising domestic consumption on the backs of growth in textile industry.
Moving ahead, I am sure we will be able to make good of the demand with our best quality reliable products and over two decades strong relationships with the world’s largest dyestuff houses. While on one hand we now have more capacities, on the other we continue to retain competitive advantage in the industry owing to our quality, cost and environmental compliances. We have made sustained investments in environmental technologies over the years including the H16 Crores committed in FY 2018-19. We are now probably amongst the world’s most environment-friendly chemical companies. And this gives us an edge in a challenging global market marked by tightening environmental regulations.
Message to the Shareholders Your Company is convinced of improving market scenario and confident of capitalising on it.
We have taken all right steps to be future ready and it is now a matter of perfect execution. I thank all our stakeholders for being with us through this exciting journey. I also thank our people for bringing in passion to work and contributing to the growth of the Company.