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“At Atul, we have
interpreted the ongoing
downturn in key markets as
an opportunity: an
opportunity to raise the
efficiency and productivity
bar; an opportunity to
work more closely with end
customers and an opportunity
to introduce value added
products. We are looking
forward to the impending
growth and at the same
time we are fortifying the
Company for the decades
ahead by bringing out the
best in us…”
- Sunil S Lalbhai
The world passed through an unprecedented economic
meltdown, reflected in the sharp decline in confidence, demand,
earnings, fresh investments and growth across most sectors. This
is evident from the performance of the major economies.
India though relatively less affected given the internal demand
had to suffer because of the high price of crude oil for almost 3
quarters of the year. Indian Re moved differently against the US$
than most anticipated. These two developments adversely affected
many companies in India.
In the midst of these vagaries, we continued our drive to improve
our performance. Even as our performance was nowhere close to
where it ought to be, I trust you will take a note of the following
numbers which reflect a change for the better:
1) Operating revenues grew by 17% to Rs1,181 crores
2) Contribution improved by 46% to Rs354 crores
3) Profit before forex impact and tax rose by 219% to Rs90 crores
4) Borrowing came down to Rs368 crores from Rs428 crores
What the numbers above do not reveal is that even while reducing
the borrowing, we have already spent Rs72 crores during the year
on several projects, the benefits of which will accrue in the years
ahead. Please find below the increase in capacity in a few key
products:
1) A crop protection product by 1500 MT or 14%
2) A fragrance intermediate by 2400 MT or 40%
3) A chemical intermediate by 1000 MT or 71%
4) A composite intermediate by 540 MT or 68%
More importantly, we remained steadfast in our resolve to build
Atul for the coming decades and accordingly continued with
several initiatives to secure the future. The numbers and the
percentages above thus do not convey the real potential of the
Company, and we are yet to witness the best.
Dear friends,
Overview by the Chairman