On a strong footing
Dear Shareholders,
It gives me great pleasure to write to you and address you with the happenings at
Kotyark in FY22, in our first-ever annual report as a listed Company. I would like to
begin by expressing my gratitude and thanking each and every one of you for your immense
support and encouragement throughout our journey leading up to the IPO. We hope to deliver
on all your expectations and create a future-ready and sustainable Company together.
Now before I take you through our FY22 performance, let me take this opportunity to
briefly introduce Kotyark to all our new shareholders and stakeholders. We are a Company
that is engaged in the manufacturing of biodiesel and its by-products, and are one of the
key players across the state of Rajasthan, India. Our Company focuses on green energy and
sustainable development of renewable resources (biofuel) through the adoption of
environment-friendly technology. Our manufacturing unit at Swaroopganj, District Sirohi,
RICCO, Rajasthan, has a capacity of producing 500 KL of biodiesel per day from multi
feedstock. We are, at present, the only pure-play listed biodiesel company in India after
we concluded our IPO just last year in 2021. When we started our journey in 2016, little
did we know that we would reach where we have today. While it swells us with pride and
happiness, it also reminds us of the longer journey we have now embarked on, and in which
we simply cannot falter. On that note, let me now share the news from our FY22
performance. We have met and exceeded our expectations this year and have delivered a
robust performance on all fronts. Our Revenue from Operations stood at 156.05 crores in
FY22, which is an increase of 139% on a year-on-year basis; it is noteworthy to mention
that we delivered this growth despite a delayed rise in fuel prices during Q4FY22. All
this while, our growth has primarily been driven by higher volumes and operating
efficiency of our manufacturing facility. Resultantly, our Operating Profit margins for
the year stood significantly higher at 8.2% in FY22 compared to 4.5% in FY21. This
increase in margins, along with the increase in our topline, has led us to deliver a
staggering 727% increase in our net profit for the year. Our financials validate our
mission and strategies, enabling us to take on more challenges as we move ahead in this
climb. We are happy and geared to see what's in store for us next.
Now on the operational side, and in line with our strategy to expand our presence and
revenue through mobile retail outlets (MRO), we have added eight more MROs of biodiesel
under our brand ‘Green N Green' this year. With this, we now have 25 operational MROs
as of FY22 and are planning to add another 50 by applying for licences. Meanwhile, we have
also made notable progress in leveraging the benefits of carbon credits in our business by
engaging necessary consultants to guide us through this process. Given the current scale
of operations, we are projecting a potential ~4 lakh units of carbon credits. The
significant milestone that I would like to share is our announcement of the recommended
dividend of 2 per share to all our shareholders. This is, of course, subject to approval
at the AGM, but the welcoming news is a testament to our hard work, our strengthened
balance sheet and the robust financial performance we have delivered over the year.
What seems to be working in our favour is a mix of opportunities in terms of tailwinds
from the industry and governmental impetus, which, when combined with our strengths,
enables us to fully capitalise on the said opportunities. Our strengths lie in our
diversified revenue streams, which include bulk buyers, retailers as well as OMCs, and our
large unutilised capacities, which will help us grow without any additional CAPEX.
Further, our indigenously designed manufacturing facility also acts as a significant
advantage, given the scope of tweaks and upgrades that we can undertake at our end. All of
these factors coalesce and peg Kotyark ahead of its competitors, giving it a marked edge.
The opportunities provided by the Indian government act as a catalyst for us, as we are
ready to take on the fuel industry and revolutionise it with sustainable and alternative
energy. In this regard, I must mention that we are delighted with the direction that the
Indian government has accorded and are confident that these policy changes, such as the
mandatory 5% blending targets of biodiesel in diesel by 2030, will bode very well for us.
It will help us enhance our performance in the coming years and add fuel to our vision of
becoming the leading Indian biodiesel manufacturer. Our journey thus far only solidifies
our belief in our abilities, and we strongly feel that we have what it takes to actualise
our vision. In closing, I would once again like to thank all our shareholders and
stakeholders for their commitment and dedication towards our Company, and for this we are
eternally grateful. With your continued support and enthusiasm, we hope to stand true on
all our promises and deliver strong performances year after year.
Your Sincerely,
| Gaurang Shah |
| Chairman and Managing Director |