Dear Stakeholders,
I am honoured to address you through our Annual Report for the year. It
fills me with great pleasure and deep gratitude as I reflect upon the remarkable
achievements we have accomplished together, the challenges we have overcome, and the path
we have charted for the future. I extend my heartfelt appreciation to our dedicated team
members and valued stakeholders, as it is through their unwavering support we have been
able to embrace innovation, uphold our core values, and reach significant milestones on
our journey towards sustainable growth and success.
Given our strong track record and technological capabilities, GNA is
well-positioned to capitalise on the industry tailwinds. GNA has built a reputation for
high quality and reliability in the domestic market over the last two decades. With one of
the widest portfolios of axles, GNA supplies to major OEMs across different vehicle
segments. As the industry grows, GNA is gearing up to meet the rising demand, while
upholding the Company's commitment to quality and service standards.
Despite supply chain disruptions and rising raw material prices, GNA
displayed resilience and delivered strong financial performance. The Company registered
total net revenue of Rs 1,582.93, a significant jump of 24.59% compared to Rs 1,270.47 Cr
in the previous year. EBIDTA grew by 29.36% from Rs 180.97 Cr in 2021-22 to Rs 234.11 in
2022-23. PAT stood at Rs 130.23, an increase of 46.67% from Rs 88.79 Cr last year.
Like last year, we are building capacities and upgrading ourselves by
undertaking long-term capex. This is aimed at expanding the Company's manufacturing
capabilities, increasing production capacity, and enhancing the overall efficiency of
operations. With this exercise, we are bolstering the Company's position in the market and
reinforcing our commitment to deliver superior products and services.
We recognise the challenges posed by escalating costs in the market and
their impact on our margins. While we strive to improve profitability, effectively
managing costs remains a priority. Our investments in adding capacity and upgrading
processes will optimise costs over time. Though this may pressure short-term
profitability, I am confident these steps will support sustainable, profitable growth in
long term. We remain committed to driving efficiencies to combat rising costs.
As we move ahead, we are confident of our position and the growth
prospects given our strategic initiatives across operations. Over the years, we have
carved a niche for ourselves in the off-highway and the commercial segment not only in the
domestic but also in the global markets. We are mirroring this same strategy for our
spindles business and aim to gain a healthy market in the passenger vehicle segment of the
industry. During the year we successfully bagged an order from a key automotive customers
for LV shafts. This order is a testament to our efforts and a clear indication of moving
in the right direction which will help us position better to benefit from rising demand
and new SUV models. This is a result of our robust capabilities and efficiency
improvements which we will continue to strengthen further. We are well-prepared to
leverage growth opportunities in exports and domestic OEM sales.
At GNA Axles, our commitment to customers entails delivering
top-quality products and outstanding service.
We strive to achieve this through continuous innovation, building our
employees' skills, and fostering an engaging work culture. Leveraging our experience,
market insights, and customer relationships, we aim to drive sales, tap potential
opportunities, and ensure customer satisfaction. Our goal is to multiply growth by
harnessing our strengths to deliver differentiated axle solutions that create value for
customers.
As I conclude, I want to express my heartfelt gratitude to all our team
members and stakeholders who have contributed to our accomplishments. Your commitment,
skills, and steadfast backing have played a pivotal part in our ongoing journey. As we
step into the future, I am confident that our collective efforts will persistently conquer
obstacles, reach greater summits, and create lasting value. Thank you for you trust,
partnership, and commitment to our shared success.
Warm regards,
Gursaran Singh Chairman