GLOBAL ECONOMY OVERVIEW
As the year began, global economic activity experienced a broad-based and
sharper-than-expected slowdown, with inflation higher than seen in several decades. The
cost-of-living crisis, tightening financial conditions in most regions, Russia-Ukraine
war, and the lingering COVID-19 pandemic all weighed heavily on the global economic
conditions during the year. While these risks remain at the turn of the last year, the
global economy appears poised for a gradual recovery from these powerful blows.
Supply-chain disruptions are settling and dislocations to energy and food markets caused
by the war are receding. Simultaneously, the massive and synchronous tightening of
monetary policy by most central banks should start to bear fruit by moving inflation back
toward its targets. Global growth is likely to bottom out at 2.8 percent this year before
rising modestly to 3.0 percent in 2024. Global inflation should decrease, although more
slowly than initially anticipated, from 8.7 percent in 2022 to 7.0 percent this year and
4.9 percent in 2024. Notably, emerging market and developing economies are already
powering ahead in many cases, with growth rates (fourth quarter over fourth quarter)
jumping from 2.8 percent in 2022 to 4.5 percent this year. The slowdown is concentrated in
advanced economies, especially in Europe and the United Kingdom, where growth (also fourth
quarter over fourth quarter) is expected to fall to 0.7 percent and – 0.4 percent,
respectively, this year before rebounding to 1.8 and 2.0 percent in 2024.
Purchasing power has seen a boost for most firms and households, and is helping to
lower headline inflation. The earlier-than-expected re-opening in China should have a
positive impact on global activity in the coming months, reducing supply chain pressures
and giving a boost to global demand and supply. While the above signs initially indicated
that the world economy could achieve a soft landing—with inflation coming down and
growth being steady, stubbornly high inflation, volatile crude prices and the recent
financial sector turmoil say otherwise. Although inflation displayed a downward trend as
central banks have raised interest rates, and food and energy prices have come down,
underlying price pressures are proving sticky with labour markets tight in a number of
economies. Side effects from the fast rise in policy rates are becoming apparent, as
banking sector vulnerabilities have come into focus and fears of contagion have risen
across the broader financial sector, including non-bank financial institutions. Pose
severe risks to the outlook and indicate that a hard landing could still be possible.
INDIAN ECONOMY OVERVIEW
Strong economic growth in the first quarter of FY 2022-23 helped India overtake the UK
to become the fifth-largest global economy despite repeated economic shocks in the last
two years of the COVID-19 pandemic. Real GDP in the first quarter of 2022–23 was
about 4% higher than corresponding 2019-20, indicating a strong start for Indias recovery
from the pandemic. Given the release of pent-up demand and the widespread vaccination
coverage, the contact-intensive services sector is likely to be the main driver of
development in the coming years. Rising employment and substantially increasing private
consumption, supported by rising consumer sentiment, should support GDP growth in the
coming months.
Future capital spending of the government in the economy is expected to be supported by
factors such as tax buoyancy, the streamlined tax system with low rates, a thorough
assessment and rationalisation of the tariff structure, and the digitization of tax
filing. In the medium run, increased capital spending on infrastructure and asset-building
projects is set to increase growth multipliers, and with the revival in monsoon and the
Kharif sowing, agriculture is also picking up the momentum. The contact-based services
sector has largely demonstrated promise to boost growth by unleashing the pent-up demand.
India has emerged as the fastest-growing major economy in the world and is expected to
be one of the top three economic powers in the world over the next 10-15 years, backed by
its robust democracy and strong partnerships.
The overall growth remains robust and is estimated to be 6.9 percent for the full year
with real GDP growing 7.7 percent year-on-year during the first three quarters of fiscal
year 2022/23. There were some signs of moderation in the second half of FY 22/23. Growth
was underpinned by strong investment activity bolstered by the governments capex push and
buoyant private consumption, particularly among higher income earners. Inflation remained
high, averaging around 6.7 percent in FY22/23 but the current-account deficit narrowed in
Q3 on the back of strong growth in service exports and easing global commodity prices. The
government is also focusing on renewable sources to generate energy and is planning to
achieve 40% of its energy from non-fossil sources by 2030 paving the way to create a
sustainable and circular economy. While the positives are aplenty, factors such as foreign
exchange fluctuations, the lingering impact of the Russia-Ukraine war, the financial
crisis in the US banking sector and crude price volatility may impact the growth story.
GLOBAL CHEMICAL INDUSTRY OVERVIEW
Global chemical production (excluding pharmaceuticals) is expected to grow by 2.0% in
2023, slower than in the previous year (2022: +2.2%). A decline in production in the
advanced economies is anticipated, (2023: –3.0%, 2022: –2.9%) with growth in the
emerging markets expected to slow slightly (2023: +4.4%, 2022: +4.8%).
The forecast for China, the worlds largest chemical market, is a slightly weaker
growth rate of 5.9% in chemical production. (2022: +6.6%). Re-opening of the Chinese
economy most likely will bring with it, a higher domestic demand, especially in the
consumer goods industries and the health and nutrition sector, as well as positive
contributions to growth from the automotive and electronics industries.
Chemical production in the E.U. should again decrease by 5.2% (2022: –5.8%), well
below the overall industrial development forecast for Europe. Due to the high energy
costs, no major catch-up effects are expected in energy-intensive basic chemicals
following the already strongly negative prior year. Growth should mainly be driven by
demand from the automotive industry. By contrast, consumption of durable and non-durable
consumer goods is not likely to increase.
Chemical production in the United Kingdom is expected to decline (2023: –5.5%,
2022: –5.0%).
In the United States, the positive base effects that supported growth in 2022 may come
to an end. Domestic demand should largely stagnate, with the exception of the automotive
industry, the energy sector and the electronics industry. Demand from the construction
industry is expected to decline on the back of high interest rates. Export demand for
chemicals from Europe should provide positive momentum given the lower raw materials and
energy prices. Overall, a slight decline is expected in chemical production (2023:
–2.0%, 2022: +2.3%).
For Japan, a weak recovery after the decline in the previous year has been forecasted
(2023: +1.0%, 2022: –3.0%). Growth stimulus here is expected to come primarily from
the automotive sector.
South America will presumably see much lower growth in chemical production (2023:
+0.9%, 2022: +2.6%). Demand from the consumer goods industries is expected to grow at a
similarly weak rate to GDP. By contrast, demand from the agricultural sector is likely to
increase more strongly and demand from the automotive industry to remain solid but with
weaker growth than in the previous year.
INDIAN CHEMICAL INDUSTRY OVERVIEW
Indias chemical industry has been a global outperformer in demand growth and
shareholder wealth creation over the last decade. It now stands poised to play an
increasingly dominant role across both consumption and manufacturing in the global arena.
Over recent years, changing geopolitical scenarios have led to many countries focusing on
domestic self-sufficiency and localized supply chains. However, benchmarking Indias
manufacturing competitiveness reveals that India has a strong starting point vs other key
global chemical clusters that could translate into India becoming the next chemical
manufacturing hub. Domestic consumption in India is set to grow at a 9-10 percent CAGR in
the coming years on the back of rising disposable incomes, a favourable demographic
dividend, increasing global preference for biofriendly alternatives, and growing
diversification of global chemical supply chains (including the value created by the
pharmaceutical sector). With this growth, Indias share in the global chemicals sector
could triple to 10-12 percent by 2040, creating an additional USD 700 billion market
value, over and above the current contribution of USD 170- 180 billion (as of 2021). The
Specialty Chemicals segment is likely to be a key driver of this growth. It has the
potential to contribute more than USD 20 billion to Indias net exports by 2040, a 10x
jump from the current total of USD 2 billion. Many sub-segments in Indias chemicals
sector offer opportunities for building at-scale businesses. Winning plays exist across
Specialty Chemicals (agrochemicals, flavours & fragrances, cosmetic chemicals, etc.),
Inorganic Chemicals (caustic, fluorine, etc.) and petrochemicals (C4, C6 and C8
derivatives). These sub-segments score high on both cost competitiveness—a function
of domestic feedstock availability, trade balance, capacity utilization, scope of process
and tech innovation, etc.—and market attractiveness, an indicator of market size,
demand growth, export potential, etc. The future of Indian chemical sector looks
promising, and the country could potentially become the driving force of the demand &
supply of the world chemical market.
BUSINESS OVERVIEW
Your Company manufactures Speciality Chemicals that can be broadly categorised into -
Shelf-Life Solutions, Performance Chemicals, Aroma Ingredients and Health & Wellness.
These products are used in varied industries such as human food, animal feed, pet food,
agrochemicals, petrochemicals, pharmaceuticals, nutraceuticals, flavours and fragrances
and health care.
SHELF-LIFE SOLUTIONS
Last financial year our shelf-life solutions business, performed exceedingly well
riding on the advantage of the high prices of food and feed products. This year, despite
the softening of the prices, CFS managed to sustain its revenue on account on of
introduction of new products, broadening of customer base and growing in newer
geographies. We are witnessing an upward trend in these products with a higher overall
revenue as compared to the past. Our India business has demonstrated a substantial growth
in terms of revenue. Improved sales activity has led to new customers buying our existing
products and increasing our knowledge based on their feedback which is helping us to
improve. We are always aware of customer requirements and the plan is to satisfy these
requirements by introducing new functional blends which will help in increasing our market
share. Our Asia Pacific business has also shown decent growth despite prices becoming more
competitive. Our blends have demonstrated sizeable growth in the rendering and petfood
space. New distributors in various regions are helping expand our reach, customer base and
consequently our sales.
Our North America business experienced a dynamic operating environment in the year with
supply chain constraints, high inflation and increased raw material and supply costs.
These challenges, however, presented us with opportunities as it amplified the need of
having a secondary supplier to potential customers. While growth for the year was modest,
CFS made significant progress in acquiring new customers with high volumes of business,
the fruits of which will be reaped in the coming year. Reduction in the competition of
certain products manufactured by us, has given us a competitive edge and the ability to
improve the revenue generation for the coming years. Natural antioxidants have been the
focus in North America which will increase revenue in the coming year. Revenue for the
year showed a healthy improvement and we are certain that next year, the company will
turnaround.
CFS Dresen has grown marginally in the year which was mainly on account of supply chain
dislocations and other global economic challenges. The company is making subtle
modifications to the petfood offerings, which are likely to be approved by customers soon.
The naturals business is showing good growth with ongoing projects with large customers in
the region. We have regained our customer base due to our superior quality irrespective of
the prices. The research and development arm of Dresen is ensuring that we can incorporate
customer requirements in our product portfolio. New ideas are being tested in the
laboratory and with customers. In the next year, we see potential to grow the natural
product business with our antioxidants and DHA being introduced to our customers.
CFS Brazil faced multiple challenges in its operating regions. Political and economic
constraints in Argentina, lack of market penetration on account of working against
well-established competitors in Brazil, dealing with the entry of local players selling
the same products at lower prices in the Chile market, impacted the revenues. Apart from
the local issues faced by Latin American nations, the threat of the Russia-Ukraine war,
Inflation, Rising prices of raw materials and supply chain disruptions continued to affect
the business. Despite these issues, CFS Brazil marginally grew the total revenue as
compared to last year. Blends comprised a majority portion of the revenue for the year.
There are new products being launched in the coming year which will add value to the
existing portfolio. The plan for the next year to grow sales is to expand the customer
base for the existing products and also add new customers for the products to be launched.
Targeting tier 3-4 regions in the different product segments along with improving social
media outreach should provide a vital push to the growth of the company. CFS Brazil
underwent a major organisational restructuring to create a lean, functionally robust and
energetic team to tackle the multiple issues in the region. Improving competitiveness in
local markets, building fast moving operation systems and creating robust support systems
was the primary motivation for this exercise.
PERFORMANCE CHEMICALS
The total capacity of the Diphenol plant in Dahej was increased by 50% in May 2022 and
currently stands at 15,000MTPA. Last year, the Company performed exceptionally well in the
performance chemical space. The division delivered improved numbers, with CFS becoming
leaders in the TBC market. HQEE, a product introduced last year, is now stabilised and
sales have streamlined. Guaiacol sales have grown significantly over last year with
multiple new orders on hand. Catechol continues to be sold in the open market. CFS aims to
give ‘Make in India a major impetus by launching several exciting products and
capturing a large market share by replacing imports in India.
CFS Europe continued to face the challenge of increased raw material and gas prices due
to the ongoing Ukraine-Russia war along with volatility of the currencies which has
impacted margins significantly. Despite these issues, the company has earned a decent
margin in the last year. These margins were also supported by the subsidy assistance
received from the local government.
A pilot study for the gasification of tar was successfully conducted in the last year
and a patent thereof has been filed this year. This initiative, if proven commercially
successful, will result not only in reducing the input costs but also positively
benefitting the environment by reducing carbon emissions.
AROMA INGREDIENTS
In January 2023, CFS India successfully commenced commercial production at their newly
erected composite Vanillin/Ethyl Vanillin plant with a capacity of 6000MTPA. This is a
significant milestone as it makes CFS one of the worlds leading producers of Vanillin.
Soon after commencement of commercial production, the company has started the process
of approval with key customers and distributors globally. On account of our past
experience in the sector, approvals have been quick, and sales are expected to pick up in
the coming quarters. Even though the market has been soft with low prices, CFS is
confident of establishing its products and gaining realisations at higher prices due to
its superior quality of product. During the year the company is looking at expanding its
footprint in the aroma space by commencing production of Ethyl Vanillin and Natural
Vanillin, and launching them into the market, which will complete the entire Vanillin
basket.
The process of modifying the erstwhile Vanillin plant at CFS Wanglong facility to
produce Heliotropin and Helional is underway. The requisite clearances and certifications
to commission the plant are being obtained. These products will add further value to our
aroma division.
HEALTH AND WELLNESS
In 2022-23, CFS introduced robust operating systems and procedures to streamline the
production process at AlgalR Nutrapharms which included a centralised procurement system,
quality control activities par excellence and an enhanced focus on scaling capacity. CFS
now offers algal DHA oil and biomass products of international standards to both domestic
and global customers. In the near future, CFS aims to widen the product portfolio by
establishing relations with technology partners for advanced Omega-3 delivery systems. We
will further strengthen the presence of the Company in the market but will also facilitate
entry into regulated application segments like pharmaceuticals and infant nutrition. With
a major focus on the dietary supplement segment (accounts for over 40% of the total algal
DHA market), CFS plans to build networks and collaborate with various stakeholders in the
industry to tap into the fast growing international markets. Overall, the Company is
effectively grooming itself to make in-roads into both, existing and new business
opportunities in the health & wellness space.
RESEARCH AND DEVELOPMENT
The post pandemic economy has come about with its own set of challenges and
opportunities. To stay abreast with the latest developments, CFS lays a strong focus on
constant innovation. Product innovation, yield improvement and process improvement are an
integral part of our research and development endeavours throughout the year. Though
adoption of green chemistry remains the primary focus, we also concentrate on optimising
yields of the existing processes. We also strive to introduce new products with an
emphasis on boosting sustainability and protecting the environment.
CUSTOMER SERVICE APPLICATIONS LABORATORY
As the impact of COVID-19 waned, customers became more hands on to test the products.
The importance of educating them has become vital for improving sales. This year CFS
Indias customer service applications laboratory was moved to an independent location.
This allows the team to work with a new sense of freedom and creativity. Multiple new
products meant new testing methodologies and protocols, all of which were developed
in-house to reduce costs and ensure quality. Multiple new machines were brought in to
enhance testing capabilities to provide more holistic services to the existing and
potential customers. Over and above the technical webinars conducted under our ‘food
for thought platform, the customer service applications laboratory, on the basis of
feedback from customers, develops new extensions for its existing product portfolio.
HUMAN RESOURCES AND INDUSTRIAL RELATIONS
The year 2022-23 marked the year of return to normalcy. Masks were done away with
throughout the world, travel and tourism resumed, people started returning to offices to
work. Re-inculcating the discipline of working from office was key to success. Flexible
entry and exit options have been provided to the staff to ensure that they can ease
themselves back into working from office. A dedicated travel desk was appointed to ensure
that those who had to travel would manage to do so safely and seamlessly. Policies were
revamped to encourage employees to work with more discipline, vigour, increased
productivity, and also to provide benefits that are commensurate with the industry
standards. To tackle general health issue faced by the employees in the head office, CFS
onboarded a wellness partner to encourage employees to take charge of their own health.
As on March 31, 2023, CFS has 627 permanent employees in India, with 28 of them being
women.
ESG INITIATIVES
In a post pandemic world, priorities are changing, with the world focussing more on
things such as the environment, sustainability, quality of life, etc. It is vital to work
in unison and achieve the goals of the Company in a manner that is sustainable for growth
and conservation of the environment it operates in. The products of shelf-life solutions
contribute in a big way to not only address the food and feed requirements but also
contribute to make adequate a scarce resource by preserving it for longer duration. The
localised set up of our business, especially our local application laboratories, expertise
in supporting local communities and resolving shelf-life challenges. Longer shelf life
reduces food losses, eases pressure on distribution and logistics and contributes to a
healthy society. CFS business of manufacturing tailor made traditional/natural blends and
additives for food safety and protection is in itself a huge initiative in promoting
solutions for sustainability.
We also provide solutions for nutrition, health and hygiene of livestock to improve
Food Conversion Ratio (FCR) and overall animal performance through the expansion of its
Animal Nutrition Portfolio. The Companys comprehensive range of products, sanitization
services and holistic health care approaches with antibiotic-alternatives would strive to
create a thriving farm environment, which will have a positive impact on food chain, food
security and human health.
At AlgalR we develop a range of sustainable products under the brand ‘BioSus,
using a proprietary fermentation technology. DHA, one of the Omega 3 fatty acids derived
from microalgae is clean, vegan and with no harm to marine life. CFS aims to provide
better feed and food by integrating natural and fermentation technologies.
CFS is also working on new ecosystems to include new materials and find alternatives to
natures finite resources such as coal. We have taken necessary steps towards
decarbonisation by adopting briquette instead of coal as an energy source at our facility
at Tarapur. Briquette provides optimum calorific value, ease of transportation and lowers
emission of harmful gas. It has high thermal value making it a better fuel. While our
products significantly contribute towards enhancing sustainability, we are now moving to
transform our production and manufacturing processes towards being fully sustainable and
environment friendly. CFS endeavour has always been to adopt a circular economy model,
and this is being implemented across board. Were aggressively planning a shift from brown
power to green power in our Tarapur plant. This not only also has a huge implication on
the cost reduction, but also allows us to reduce our carbon emissions significantly. It is
our mission to shift to green electricity at the earliest and we are exploring multiple
options to achieve the same.
At CFSEurope, a process to convert the tar produced in the di-phenol plant to syngas is
under trial. This has been proved on the lab scale and we have applied for a patent for
this process. This will not only reduce our carbon emissions, but also reduce our reliance
on natural gas and the volatilities in supply and price that come with it. At our Dahej
facility, we are using a shell and tube heat exchanger, which captures the heat from
vapours released in one step of our process and allows us to use the heat generated for a
later step in our process. This reduces our reliance on coal and allows us to reduce our
emissions further.
Our strategic partnership with Lockheed Martin, a US based firm that delivers
comprehensive solutions across the energy industry to include energy storage, demand
management solutions, microgrids, military energy solutions, nuclear systems and bioenergy
generation, is a project which promises to revolutionise the energy storage space. Current
dominant technologies for storage and distribution of power such as pumped hydro ion and
lithium ion cannot sufficiently provide a durable solution. Their unique flow battery
technology has the unique ability to address high-energy needs by cycling for ten or
eleven hours on a sustained basis and is well suited for use even in emergency and
unpredictable situations. It allows for maximising the utilisation of renewable energy due
to its capability to store energy for a long duration.
One of largest waste components in our manufacturing process is solvent. Solvent is
recovered on site and reused in the process to ensure environment preservation, resource
conservation and cost reduction.
Along with switching to more environmentally sound practices, we are now demanding the
same from our vendors, alliance partners and employees as well. We are ensuring that the
initiatives taken by the Company not only help us to not disturb the balance of nature,
but also restore what has been lost so far.
INFORMATION TECHNOLOGY
In line with the overall growth objective and strengthening of our infrastructure base,
the Company continually invests in Enterprise Resource Planning systems & general
infrastructure improvement tools for leveraging its business. New infrastructure helps to
automate workflows to support faster and leaner accounting processes while ensuring
adequate controls and fulfilment of the regulatory requirements. Processes have been
continuously strengthened for enhanced effectiveness and productivity including deployment
of best-in-class tools for analytics in the Audit domain. Quarterly ITGC (IT General
Controls) inspection is done by qualified engineers during internal audits.
We have initiated POC (Proof of Concept) & Audit for deploying Cybersecurity Tools
for Data-Monitoring, security, availability & infrastructure.
Periodic disaster recovery drills were carried out by the team to ensure business
continuity and data protection. During our annual IT Audit, periodic vulnerability testing
is carried out by a third party agency to ensure that the company data is protected from
external threats.
While we shifted the head office to a new location within Mumbai, the transition was
seamless across all subsidiaries without any significant downtime. All the e-waste
generated during the shifting was handed over to an IT waste management agency to be
disposed in a manner which reduced the burden on the environment. In the coming year, CFS
plans to conduct employee awareness sessions on cybersecurity in all locations in India.
These sessions will be not only to increase their awareness at a company level but will
also benefit them on a personal level with regards to their own data privacy.
RISKS AND CONCERNS
The Company is prone to various risks such as technological risks, strategic risks,
operational risks, foreign exchange currency risks, health, safety and environmental
risks, financial risks as well as compliance & control risks. These risks can have a
material adverse impact on the implementation of strategy, business, performance, results,
cash flows & liquidity, stakeholders value and of course reputation.
The Company has an effective risk management framework to report, manage and mitigate
these risks. The Board oversees these risks through various committees like Risk
Management Committee, Audit Committee, and Stakeholders Relationship Committee.
The Company continues to maintain a strategic approach to risk management and
approaches it cautiously to reap its rewards and accelerate growth. The Companys
expansion strategy includes expansion into various countries around the world. It is the
risk handling ability of the Company which makes the difference. Exposure to international
markets exposes the business to currency risks. This risk has been mitigated by effective
foreign exchange management policy along with judicial use of natural hedge provided by
exports against its imports in view of the Company being the net exporter on the currency
front.
As regards inflationary pressures and its impacts on the cost of manufacturing, it gets
monitored regularly to ensure that they do not affect the operating margins of the
Company. The Company continues with its efforts to improve its processes, yields and
technological upgradation and also stresses on bringing about cost optimization.
The Board also reviews the implications of the ongoing global geo-political crises and
issues and its effects associated therewith on the affairs of the Company. COVID-19
pandemic exposed the company to an unprecedented humanitarian challenge. Company was able
to mitigate and reduce the impact to a large extent with smart use of scarce resources.
It is a company principle to act pre-emptively in matters related to risk. Our ethos
ensures that we anticipate and mitigate risks as far as possible.
INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an adequate system of internal controls in place. The system consists
of documented policies, guidelines and procedures which cover all important financial and
operating functions. These controls have been designed to provide a reasonable assurance
with regard to maintaining of proper accounting controls for ensuring reliability of
financial reporting, monitoring of operations, protecting of assets from unauthorised use
or loss, and complying with regulations.
The Company consistently strives to improve its processes and align them with the
highest standards. An established framework is in place to monitor the controls through
the Risk Management Committee as well as the Audit Committee. The Audit Committee
comprises Independent Directors who regularly review audit plans, significant audit
findings, adequacy of internal controls, compliances with accounting standards and changes
thereto. The Risk Management Committee reviews business risk areas covering operational,
financial, strategic and regulatory risks.
The Company has independent internal auditors who review and report to the management
and the audit committee about compliances with internal controls and the efficiency and
effectiveness of operations as well as key process risks. Our internal control system is
further fortified by our steps taken to address risks and concerns referred under the
section, "Risks and Concerns."
There have been no significant changes in our internal control over financial reporting
that occurred during the period of the annual report that have materially affected or are
reasonably likely to materially affect our internal control over financial reporting.
Similarly, our initiatives during the COVID-19 pandemic also did not have any significant
effect on internal controls. During the financial year, we have assessed the effectiveness
of the internal control over financial reporting and have determined that the system was
effective as on March 31, 2023.
FINANCIAL PERFORMANCE REVIEW
Members may refer to the section ‘Financial Results in the Boards Report for the
summary of financial performance of your Company.
Members may refer to Note 48 to the financial statement which sets out financial ratios
of the Company.
The details of significant changes (i.e., change of 25% or more as compared to the
immediately previous financial year) in financial ratios is as follows:
Particulars |
Standalone |
Percentage change |
Reason for change |
| 2022–23 |
2021–22 |
|
|
| Interest Service Coverage Ratio (Times) |
2.23 |
1.94 |
15.15% |
Improvement in ratio on account of higher profits. |
| Operating Profit Margin (%) |
13.24 |
8.65 |
53.03% |
| Net Profit Margin (%) |
6.02 |
3.77 |
59.62% |
| Return on Equity (%) |
7.70 |
4.90 |
57.39% |
The details of return on net worth at standalone levels are as follows:
Particulars |
Standalone |
Percentage change |
| 2022–23 |
2021–22 |
62.56% |
| Return on net worth (%) |
16.27% |
10.01% |
Operating profit has increased from 5,929.65 lakh to 10,449.67 lakh and the net
worth has increased from 59,234.17 lakh to 64,214.21 lakh which has resulted in
increase in the return on net worth. Net worth has increased on account of increase in the
Share Capital from 1,569.84 lakh to 1,570.93 lakh in view of allotment of ESOPs to the
employees. Further, Other equity has increased from 57,664.33 lakh to
62,643.28 lakh on account of profit earned during the year.
Source:
https://www.oecd.org/economic-outlook/march-2023/
https://www.imf.org/en/Publications/WEO/Issues/2023/01/31/world-economic-outlook-update-january-2023
https://www.imf.org/en/Publications/WEO/Issues/2023/04/11/world-economic-outlook-april-2023
https://www.ibef.org/economy/indian-economy-overview
https://www.worldbank.org/en/news/press-release/2023/04/04/indian-economy-continues-to-show-resilience-amid-global-uncertainties#:~:text=The%20overall%20growth%20remains%20robust,half%20
of%20FY%2022%2F23.
https://www.indianchemicalnews.com/webinar/chemical-industry-outlook-2022-36
https://www.mckinsey.com/~/media/mckinsey/industries/chemicals/our%20insights/india%20the%20
next%20chemicals%20manufacturing%20hub/india-the-next-chemicals-manufacturing-hub-vf.pdf
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