The Financial year 2015-16 was one of the most challenging year for Goa Carbon Limited.As you are aware the fortune of calcined petroleum coke is linked with the growth ofaluminium and steel industries and about 80 per cent of the countrys aluminiumdemand comes from the power automobile and construction sectors. All these sectors weresuffering from recession resulting into lesser demand directly impacting demand for CPC.In fact Indian industry as a whole witnessed negative sentiment during the year.
During the period under review the company sold 154688 MT of calcined petroleum coke.Good volumes better foreign exchange management and lower raw material costs aided slightimprovement in our performance in the last quarter of the year.
In light of this I am hopeful that we will close FY17 with better numbers. I have nodoubt that certain positive developments will augur well and set us on a growth trajectoryfor the entire year.
On the manufacturing side all our plants located in South Goa Bilaspur inChhattisgarh and Paradeep in Odisha are fully operational and well-geared to fulfil bothdomestic and export orders.
At this point we are not unduly concerned with the pressure on our margins due toproblems currently faced by two major business segments steel and aluminium. Whilewe expect this to continue for the next one or two quarters we continue to remainoptimistic of higher tonnage and consequent margins in FY17. Goa Carbon is a regularsupplier of calcined petroleum coke to aluminium smelters graphite electrode and titaniumdioxide manufacturers as well as metallurgical and chemical industries.
More importantly the management believes that the demand for aluminium will grow atleast five times over current levels by 2030. This will give a boost to power andelectrificationprojects which in turn will increase demand for our product.
Corporate governance and ethical management are critical aspects of modern business.Your company not only seeks to pursue efficient management and ensure globalcompetitiveness but also fulfil its social responsibility through ethical and sustainablemanagement. To this end the Board has adopted a number of policies to support goodcorporate citizenship that is important for our long-term success and creating value forour shareholders.
As we look at the Union budget 2016-17 it is futuristic in tone and is likely tooffset the downturn that we have seen both at home and on a global scale. We expect thebudget to provide a fillip to activity in FY17. Inflation has been largely checked due tosound fiscal and monetary policies. Besides these two key developments will have apositive impact on inflation. One is the adoption of flexible inflation targeting (FIT)framework which pegs inflation between 4 2 per cent; and two formation of a monetarypolicy committee to steer Indias monetary policy. We are also hopeful of a renewalin manufacturing activity and infrastructure development which will increase demand andsupply across all segments of the economy. The major factor for speeding up the economywill however be a good monsoon that will see a revival of agri business and ruralgrowth.
If Budget 2016-17 and the Indian Governments development agenda bear fruit thenthe GDP growth rate of 7.7 for FY17 which is expected to surpass Chinas may wellbe a reality.
I take this opportunity to express my sincere thanks to our shareholders as well as toGovernment of India the Governments of Goa Chhattisgarh and Odisha Mormugao andParadeep Port Trust regulatory authorities and our bankers associates and suppliers fortheir unstinting support and cooperation.
I also wish to express my gratitude to all the Board Members and to our valuablecustomers whose trust and confidence in the company encourages us to overcome hurdles andlook forward with renewed hope and optimism.
Shrinivas V. Dempo