I am pleased to share with you an update on your company’s performance for the Financial Year 2019-20. Here I am presenting the 40th Annual Report of K G Petrochem Limited reflecting our accomplishments during the financial year 2019-20.
Your Company performed well throughout the financial year 2019-20 but a slower growth rate was recorded in the last quarter due to COVID -19 pandemic in March 2020. The novel coronavirus has affected not just human health but severely impacted business and the society at large. Against, this backdrop, your company has delivered competitive, profitable and responsible growth.
Your Board has also contributed a sum of Rs. 11.00 Lacs (Rupees Eleven Lacs Only) to CM Care Fund and inter-alia as a gesture to support the government in fighting against COVID-19.
As far as Indian economy is concerned, well before the onset of the COVID-19 pandemic, India’s GDP growth had begun to slow down. Several multilateral agencies, including the World Bank and the International Monetary Fund have drastically cut India’s GDP Growth forecast for Financial Year 2020-21. Consider the data on real GDP growth. It was 7.2% in FY 2018. It then decreased to 6.1% in FY2019. Now, it seems to have fallen to 4.2% in FY2020 — driven by a mere 3.1% growth in January-March 2020, with the COVID-19 national lockdown wiping out all economic activity in the end of March 2020.
Further, as far as our textile industry growth is concerned the global home textile market is currently valued at US$ 50 Billion, largely dominated by Asian players with India and China having a market share of 11% and 35% respectively. With strong improvement in overall macro indicators, the global home textile market is expected to reach US$ 67 Billion in 2020-21. The Indian Textile Industry has an overwhelming presence in the economic life of the country. India is the third largest home textile market in the Asia-Pacific region. The US$ 4.7 billion Indian Textile Industry is likely to become a US$ 8.2 billion by 2021.
The Indian Textile Industry continued to reel under pressure on account of increased cost and decreased profitability. However due to well anticipated policy changes which resulted in the Company’s Top line as well as bottom line yet gain touching a new height. Your company is one of the leading manufacturers of the Terry Towel because of quality product. A fully computerized system maintains uniformity of quality, strength, colors, printing and any other customer specification
Here are some key data
· Total Gross Income is Rs. 33,755.24 Lacs — an increase of 31.52% from that of the previous year, which is the Company’s highest turnover ever.
· Operating earnings before interest, tax, depreciation and amortization (EBITDA) increased by 33.75% to Rs.5, 226.03 Lacs — which is also your Company’s highest ever.
· Profit before tax (PBT) before exceptional items is Rs.2602.59 Lacs.
· Profit after Tax Rs. 1747.09 Lacs, which is K G Petrochem Limited’s highest PAT in history.
· During this year in Ultra Polycoats;our artificial leather division started production with second coating line. The Revenue from Operation of the Coated Fabric (Net) increased to Rs. 3,777.85Lacs compare toRs. 1,905.06 Lacs from the previous financial year.
I strongly believe that the cordial relation between the management and employee can take the organization to newer heights. I recognize the genuine efforts of the employees at all levels during the time of pandemic scenario. I sincerely thank the board members and all employees for believing in organization goal and objectives, and for creating such a positive and productive workplace by establishing respectful and amicable relationship. I always had faith on our employees in doing productive work that eventually benefited the organization. I take pride to represent them and work together with them to ensure higher growth for the company in the coming years.
I extend my sincere thanks to all our stakeholders including lending banks, shareholders, customers and our loyal, hardworking and committed employees for their unstinted support in shaping and improving the performance of the Company and for inspiring us even in the turbulent time in the recent past.
With warm regards,
Chairman cum Whole-Time Director