Group Chairman's Message
Dear All,
We have seen some remarkable ups and downs in recent past. We lost the opportunity to be a member for the National Suppliers Group (NSG) after fierce opposition from China - and this was certainly a letdown given the Herculean efforts by the Prime Minister.
But the disappointment was short-lived as soon afterwards we got the membership of MTCR or Missile Technology Control Regime. MTCR membership will enable us to buy high-end missile technology and also enhance its joint ventures with Russia. And as icing on the cake, India took a big leap in space technology on June 22 Indian Space Research Organization used its workhorse PSLV-C34 to inject 20 satellites including 17 foreign satellites into orbit in a single mission and set a new record.
Amid all this high points there was visible discomfort when it was announced by RBI Governor Raghuram Rajan that he would not seek a second term. Many questions were raised as to the timing and intent of the government. For skeptics, this was an indication of politics prevailing over politics while many thought we should not read too much into this episode.
Whatever may be the facts behind these high-profile micro issues, at a macro level, we have heard lot of murmurs over the pace of reforms. Largely the feeling is that corruption at the Central Government level has been nailed and ministers are on their toes to perform and reform. Amid the many developments that we listed above had come the relaxed foreign direct investment norms in single brand retail, civil aviation, airports, pharmaceuticals, animal husbandry and food products. This certainly is a welcome sign.
However, there are challenges as well. Globally as you are aware we are going through a tough time and it will be a while before the situation gets to normal. Like all other businesses it is important for us to continue to focus on fundamentals, have a firm plan in place, focus on cost efficiencies, performance and productivity, and plan well. By following these and with your support we have managed to do reasonably well during the financial year ending March 2016. The EBIDTA margin improved from 16% to 19% from Rs 1078 cr to Rs 1157 cr, while cash profit shot up from Rs 616 cr to Rs 690 cr. I am also happy to share that the Group’s net worth at improved from Rs 4354 cr to Rs 4517 cr, while our total assets stand at Rs 10057 cr. There were some areas of concerns as well. For instance, export sales declined by 20% to Rs.1984 cr. from Rs.2548 cr.
Going ahead we shall have to retain our work ethics and culture. Team leaders will need to keep the motivation levels intact, while managers shall have to perform to their full potential. We must remember we should always prepare for future in advance to tide over any contingencies.
As I sign off, I would strongly urge all of you to get geared to address all the demands of future, be it the technology, fast changing consumer aspirations and expectations, the way we manage business, the way we deal with information and most importantly acquisition, retention and management of the talent. Leadership behavior, I can very well visualise, to undergo a change of sort and would be the key to manage the technology, the process, the environment and the people. Every passing year would create enough challenges for any business and the professionals. I recall what Theodore Roosevelt once said, “It is not often that a man can make opportunities for himself. But he can put himself in such shape that when or if the opportunities come he is ready.”
With Best Wishes
Ravi Jhunjhunwala