It gives me immense pleasure to welcome all of you to the 34th Annual General Meeting of FCI OEN Connectors Limited. At the outset, I would like to inform you that Amphenol Corporation has acquired 100% share of FCI from Bain Capital and we are now part of Amphenol Corporation, USA.
The Directors’ Report and Accounts of your Company have been with you for some time and I seek your permission to take them as read.
The environment in the metals industry was challenging due to the weak demand and declining commodity prices. The continuous rebalancing of the Chinese economy has depressed the manufacturing sector, particularly related to metal products.
Domestic sales for the 15 months period ended March 31, 2016 was at Rs. 1572.57 million (Rs. 1017.84 million in the previous year). Export sales for the year was at Rs. 2,382.23 million (Rs. 2,025.11 million). Export entitlements increased to Rs. 69.09 million from Rs 38.65 million. Net revenue thus increased by 898.42 million to Rs 4414.07 million in 2016. EBITDA reduced by 2.07 % to Rs. 162.87 million. After providing depreciation, PBT was reduced to Rs 18.33 million. Earnings per share is Rs. (10.55) (Rs. 10.25 in the previous year).
Performance for the year 2015-2016 was satisfactory. Your Company is glad to inform you that the production of newly transferred product Standard Metral from China got stabilized in 2016. This has helped to a great extent in maintaining the operation at the same level of 2015 on a comparable basis even though we could see softness in other products due to slowness in Chinese market. Domestic sales showed a growth, mainly from new business / customers.
Sales for the first five months of the year 2016 was Rs.1400.22 million against Rs.1229.95 million during the corresponding period of last year.
Sales continued to show an increasing trend, both in domestic and export market. The emerging Digital Grid market has opened up opportunities in many areas including substation automation, smart metering, UPS & Inverters etc. Your company continues to be the preferred partner for many Industrial majors present in the country for all their interconnect needs. As a part of Amphenol Corporation now, your company is leveraging the strong product portfolio of many Amphenol Industrial divisions worldwide, bringing proven innovative solutions to the Industrial customers across the country.
Your Company is proud to be associated with the ambitious and one of the largest LTE/4G projects in the world, which will bring a wide range of broadband services to users all across the country. Your Company continues to ride on the telecom wave in 2015 by engaging with new packet networking and optical transport equipment manufacturers that are expanding their presence in India. The new futuristic and compact OCTIS™ Outdoor I/O system continued to be designers product of choice for the next generation radio platforms, including distributed antenna systems, which is the next upcoming wave in the Industry for the last mile connectivity. The foray into the last mile connectivity solutions like Fiber-to-the-home (FTTH) and Fiber Management Systems (FMS) solutions also has been well received by the Industry and we are excited to have a formal launch of these product lines shortly, reinforcing our vision of becoming leading interconnect solution provider in the HSIO segment in the country.
Budgeted Sales for the year 2016-2017 is estimated at Rs 3,423 million and EBITDA of 4.9%. Cost reduction initiatives continue to be the focus area of the Company in order to be competitive in the market place.
The Board of Directors wishes to place on record their appreciation and gratitude for the contributions made by all employees. Harmonious employee relations continued in 2015-2016 also.
On behalf of the Board, I wish to express my heartfelt thanks to AFCI Group for their increasing support to the Company. We also wish to thank our customers for their continued support.
I take this opportunity to also express my sincere thanks to the family of investors for their continued support and confidence.
18th June 2015