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Managing Directors’ note

Chairman’s Speech

With immense pleasure I present to you our Company’s 30th Annual report. This report encapsulates the performance of our Company throughout the fiscal year 2022-2023. A year that brought both challenges and opportunities, and a year that truly tested our resilience and determination.

In a dynamic and ever-evolving business landscape, we navigated through various challenges that impacted our industry. From geopolitical tensions to rising energy costs, inflationary pressures, and disruptions in global supply chains, we encountered numerous obstacles. Despite these hurdles, I am proud to announce that our company emerged stronger and more resilient. The past fiscal year demanded solid commitment and a steadfast approach. Our team exhibited unparalleled dedication, enabling us not only to weather the storm but also to thrive amidst challenges.

When evaluating the performance of fiscal year 2022-2023, it is crucial to consider it in the context of the preceding fiscal year, 2021- 2022. The latter period witnessed substantial revenue growth due to unique circumstances following the aftermath of COVID-19 restrictions. 

This growth resulted from increased sales volume due to pent up demand from the market and precautionary stockpiling by buyers The subsequent stabilisation coupled with escalating energy costs in the global market, notably in Europe, led to a slowdown in sales and destocking of inventory in the global textile market.

Krishnakumar Jhunjhunwala

Krishnakumar Jhunjhunwala
Chairman & Managing Director


In this fiscal year, our Company experienced a 10% decrease in revenue, totalling INR 387 Crore, owing to lower realisation on the back of correction in key raw material prices. The EBITDA margin also contracted from 21% to 17%, mainly due to high-cost inventory affecting our profitability. Despite the aforementioned challenges, it’s noteworthy that our company managed to deliver industry leading margins. Our company remains committed to deliver operating margins exceeding 20%, driven by higher share of value added products, which currently stands at 50%.  Our financial resilience is evident in our prudent approach to capital allocation. In the past year, our debt-to-equity ratio decreased to 0.24 from 0.31 in FY21-22. As a net cash company, we are dedicated to achieving the status of a gross debtfree entity in the years to come. Moreover, our Company has achieved a remarkable feat by maintaining a 100% customer retention rate, and even successfully acquiring new customers throughout the year. This impressive accomplishment can be largely attributed to our company’s strong dedication to a customercentric philosophy, which has enabled us to build strong relationships and ensure satisfaction among our clientele.

Our Company executed its expansion strategy within the existing facility, enhancing high tenancy yarn capacity. Noteworthy advancements include increasing Nylon 66 capacity from 1 TPD to 3 TPD and Nylon 6 capacity from 3 TPD to 8 TPD. A total of INR 57 Crore was strategically invested in capacity expansion and plant modernisation. These strategic investments in high-demand product categories are anticipated to increase sales volumes, realisations, and margins, consequently driving revenue to surpass INR 600 Crore in peak utilisation. These product categories, in high demand and requiring reliable supply chains, feature our Company as a trusted brand in this field. We anticipate minimal or negligible gestation period between the commissioning of these expanded capacities and their attainment of rated capacity utilisation. Notably, the funding for these strategic investments will be derived from internal accruals. We anticipate this approach will facilitate favorable margins, thereby rendering the investment proposition quite appealing. This cyclical process is envisioned to establish a sustainable and perpetuating cycle of value generation for our Company.

Our outlook for the future is characterised by a strong sense of optimism, bolstered by the ongoing encouraging trends in our product inquiries. Even though buyers preferred purchasing product volumes in line with demand quantities rather than stockpiling, our Company has seen continued interest in its products throughout the year. The support from our customers has boosted our confidence, especially as we look ahead to a strong recovery in the latter part of FY24. It’s worth noting that both our domestic and export markets are experiencing favorable traction, indicating a rising demand for our products. We are also committed to enhancing our brand visibility through active participation in various events and exhibitions. These efforts aim to increase awareness and recognition of our products in the broader market. A significant focus is on the changing trends in the Indian market. We have strategically realigned our focus to adapt to these shifts, which is expected to open up substantial growth opportunities within the domestic market. This strategic shift is poised to act as a catalyst for our overall growth trajectory. As we look forward, optimism courses through our veins. The challenges we have overcome have not only fortified us but also illuminated the path forward. Our commitment to excellence, combined with our ability to adapt swiftly, will continue to be our guiding stars. Our focus remains firmly fixed on seizing emerging opportunities, harnessing technological advancements, and aligning with sustainable practices.

I would like to extend my heartfelt gratitude to our stakeholders i.e. our valued investors, loyal customers, dedicated employees, and supportive partners. Your consistent trust in our vision and mission has been the cornerstone of our achievements. This journey wouldn’t have been possible without your continuous support. Thank you for being an integral part of our success. I eagerly anticipate another year of collaboration, growth, and accomplishments together.

-Krishna Jhunjhunwala

Chairman & Managing Director

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