Managing Director’s Speech
“At Sukhjit, we prioritise our employees’ well-being by offering continuous learning and career growth opportunities. Our positive work environment fosters professional development, work-life balance and recognition for exceptional performance.”
Dear shareholder,
As the business landscape undergoes constant transformation, shaped by evolving consumer preferences and shifting industry dynamics, we, at Sukhjit Starch and Chemicals, acknowledge these realities and leverage them to our advantage. We view challenges as opportunities to cultivate innovation and growth. Our focus on continuous improvement and adaptability, a hallmark of our seven decade legacy, ensures that we remain at the forefront of the ever-evolving marketplace.
While the last fiscal year presented its share of difficulties, with continued pressure on the prices of some high-value finished goods due to lower demand in certain sectors, we demonstrated remarkable adaptability and resilience in a rapidly changing environment. Despite pressures, we achieved higher sales volumes compared to the previous year.
During the fiscal, our net sales stood at Rs. 1,370.86 crores, EBITDA at Rs. 134 crores, and PAT at Rs. 55.62 crores. I am also happy to share that our long-term debt has reduced to about Rs. 83 crores with a very low debt to equity ratio of 0.16 and the amount mainly include unsecured fixed deposits.
At Sukhjit, a cornerstone of our strategy has been the diversification of our product mix. We have been working towards continuously providing superior solutions that meet the specific requirements of different market segments. This approach has strengthened our customer relationships.
Our commitment to enhancing our product portfolio and advancing our operating margins remained steadfast. During the fiscal, we prioritised higher starch utilisation, striving for optimal performance, maximising operational efficiency and boosting productivity across our operations.
At Sukhjit, we prioritise our employees’ well-being by offering continuous learning and career growth opportunities. Our positive work environment fosters professional development, work-life balance, and recognition for exceptional performance.
Besides, we care for the communities we operate in. Our CSR approach focuses on empowering communities and promoting sustainable development. We invest in modernising educational facilities, providing scholarships, and managing educational institutions, particularly for underprivileged girl students from rural areas. We also collaborate with healthcare organisations to provide affordable medical services.
In conclusion, while the past year presented challenges, we are optimistic about the future due to a projected rise in demand, particularly within the booming FMCG sector, which aligns perfectly with our high-value product portfolio. Additionally, the growing health consciousness creates a tremendous opportunity for us, as our products are directly incorporated into many of these sought-after food items. By embracing innovation and prioritising sustainability, we will continue to thrive in the ever-changing marketplace.
Our strategic initiatives are on track, with a notable increase in capacity expansion to meet this rising demand and strengthen our market position. We are also exploring strategic expansion through both Greenfield projects and potential acquisitions, contingent upon market dynamics and internal assessments, ensuring informed and measured investment decisions. We are also prudent in our market entries, planning to diversify into new product segments once we ascertain the demand visibility for these offerings.
With a resilient foundation, a forward-looking strategy, and a focus on continuous improvement, we are poised to harness emerging opportunities and deliver superior results in the years to come.
I would like to extend my deepest gratitude to our esteemed shareholders for their support and trust.
Regards,
K. K. SARDANA
Managing Director