FY 2017-18 was a defining year for Gallantt Metal both in terms of financialperformance and strategic growth. Over the years Gallantt Metal has grown to be marketleader in the State of Gujarat and adjacent states in Steel Sector and has establishedsignificant presence in the region. We have traversed dynamic market conditions andchallenging demand-supply equations to reach where we are now.
Economic Outlook and Industry
FY 2017-18 was characterised by a broad-based improvement in global growth risingindustrial production progress on the supply side reforms in China and an uptick inglobal steel pricing environment.
Compared to the global scenario the India story remains buoyant and holds significantpotential. Firm government reforms businesses adjusting to transformational policychanges like demonetisation GST RERA etc. and increased spending on welfare andinfrastructure needs gels well with the revival of India's growth theme. In FY 2017-18India grew by 6.7 percent and the IMF growth forecast is 7.4 percent for FY 2018-19 and7.8 percent in FY 2019-20. It is noteworthy that China's growth in FY 2018-19 will be 6.8percent making India regain the crown of the fastest growing country among emergingeconomies.
According to the International Monetary Fund (IMF) the world economy is gatheringspeed. To make this gain sustainable shared priorities across economies which includestructural reforms and working towards inclusive growth models need to be implemented.
The IMF report mentions that 2017 saw the best global growth in seven years havinggrown by 3.7 percent. While the growth is broad- based notable upward surprises in Europeand Asia contributed to the record numbers.
Events around the world in the past year demonstrate a growing willingness of thepolitical leadership to solve geopolitical and trade- related conflicts through debate anddialogue. This approach of world leaders across politics businesses and regulatoryaffairs to find solutions to systemic macro-economic imbalances by sitting across thetable bodes well for a more equal world. That said there are sporadic threats to theworld economic order due to countryled populist measures ambitions of regional dominanceand imbalanced growth within and across economies.
The Indian economy too saw a strong rebound in demand especially in the second halfdemonstrating a healthy resilience to disruptions and structural changes. India's macrofundamentals such as fiscal deficit and credit rating are improving and broader basedfinancial reforms are being undertaken through initiatives such as relaxation of FDIrules enactment of Insolvency and Bankruptcy Code and growth stemming from governmentalspending.
Your Company's Performance
For the first time in many years Infrastructure received a big boost in the form ofbudgetary allocation and consumer sentiment too is on rise. We are crossing the GDPthreshold of US$2.5 trillion and a likely thrust on infrastructure development. Themedium and long-term outlook for steel demand is very positive. Gallantt Metal isparticipating in strategic opportunities under this process and is hopeful that qualityefficiency and governance will converge to make better utilisation of some thisopportunities.
Being a flagship company of the Gallantt Group Gallantt Metal is one of the leadingsteel producer with integrated steel manufacturing capabilities in the Western India. Thecompany has established its presence with strong technological competencies. Poised tolead the market Gallantt Metal has achieved stellar growth and has maintained its winningstreak through the years.
Your Company has delivered good operational performance in FY 2017-18 and recorded aRevenue of ' 84558.04 Lacs and EBIDT at ' 9086.65 Lacs in the Fiscal. Profit before Taxand Profit after Tax stood at ' 6933.53 Lacs and ' 4933.29 Lacs respectively.
Revival in demand in the second half of the year was a key catalyst of our performanceand was driven by improving prospects of the auto construction and capital goods sectors.
We assure you our commitment for continued growth. I would like to thank all ourstakeholders including employees customers regulators bankers vendors etc. for makingthis journey memorable and worthwhile. I am confident that with your continued support andcooperation we shall succeed in leading our mission to a successful conclusion committedin line with the Government's mission of 'Infrastructural Development of India'.
C. P. Agrawal