Fiscal 16-17 was a year of consolidation and laying the foundation for achieving the dream of Decade of Profitable Growth.
As part of the Vision, FY16 saw the acquisition of the US-based Precision Die Casting Inc. In FY17, multiple initiatives to turnaround the Company have been put in place. As part of the Design, it was a year of adding capacities and building capabilities. Our emphasis on R&D has been growing to help us face the future.
The consolidated revenue saw a sharp jump of 37% to clock Rs. 1,171 Crore in FY17, up from Rs. 857 Crore in FY16. Similarly, the EBITDA moved up by 30% to Rs. 100.5 Crore in FY17. While PAT has seen a de-growth, the company is working on bringing in cost control measures to remedy this.
With multiple initiatives, both the Die Casting units in India and the one in US should see improvement in performance. I am confident that as the Customer satisfaction level improves, it will bring in significant new opportunities from existing customers and open doors to new global OEMs and Tier 1 vendors.
The enhanced product development capability and upgraded R&D facilities helped to win the exports business from global OEMs like Daimler, Volvo and Maruti Suzuki in the Indian market. Beyond product enhancement and new product development, R&D continues to work on enhancing cost competitiveness of the Company.
This fiscal saw new capacity creation of the Rack & Pinion Gear in the Varanavasi plant in Tamil Nadu. Further, the newly commissioned second plant for Die casting in Hyderabad has ramped up production.
The Government successfully steered the GST bill and this should lead to other reforms in the country. The economy and the auto industry is poised to do well next year, due to the progressive reforms coupled with normal monsoon, low interest regime and strong rural demand.
On behalf of the Board of Directors of Rane [Madras) Limited, I thank our stakeholders -Employees, Customers, Vendors, Investors, Bankers and Communities - and remain committed and sincere in our efforts to keep delivering ever better value in the years ahead.