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BSE Code : 517168 | NSE Symbol : SUBROS | ISIN : INE287B01021 | Industry : Auto Ancillaries |


Chairman's Speech

Dear Shareholders,

As we reflect on thefiscal year 2023-24, it is with great pride and gratitude that I present to you the 39th annual report of Subros Limited. In FY24, the Indian economy demonstrated robust growth, driven by a confluence of factors. India has grown to be the 5th largest economy in the world and the 3rd largest in the mobility sector. The country is moving towards becoming a resilient economy backed by sound government policy.

The dynamism of India has made it a key manufacturing hub for the nation and the world. The year gone by has been significant with various positives, inflation was under control, GDP stood at 8.2%, the stock market touched new heights and infrastructure development picked up momentum. The government has aggressively invested in infrastructure, including roads and highways, leading to an increase in jobs, income, and eventually, consumption. There have been challenges and disruptions in supply chain however, industry has been able to adapt and realign.

The mobility sector today stands at an inflexion point as it transitions from just being automotive manufacturing to mobility. Interestingly, exports are growing rapidly for the sector and in some quarters, have even overtaken imports. The 'Make in India1 drive towards a 'Viksit Bharat1 is real and the entire mobility sector is now surging towards being future ready and resilient.

The sector is witnessing a transformative era driven by rapid technological advancements and shifting consumer preferences. There are transitions in energy, supply chains, and digital transformations backed by Al, machine learning, transitions in consumer preferences and most importantly, transition in people and skills. A key driver of growth in India is the rebound in domestic consumption, spurred by rising disposable incomes and pent-up demand over the past 2 years. A main influence shaping the market includes the growing adoption of Hybrid (SHEV) and Electric Vehicles (EVs) as governments and OE's push for greener alternatives to combat climate change. Alternate fuels are increasingly gaining traction both in passenger vehicles as well as buses, trucks, and railways.

Further, connectivity and automation are revolutionising vehicle design, with smart features and autonomous driving technology becoming increasingly main stream.

For Subros, FY 2023-24 has been marked by significant achievements, strategic advancements and a resilient performance despite the varied challenges faced by the automotive industry. We witnessed a strong rebound in the automotive market, leading to higher revenues and better profitability. The Company has clocked a 9% growth in revenue, which now stands at INR 3,071 crores and doubled its profitability as compared to last financial year. This was the result of a robust localisation plan backed by improvements in operational efficiencies via various initiatives across plants and departments.

Subros has been able to diversify its customer portfolio and has made considerable inroads into the railways as well as the commercial vehicle sector (both trucks and buses). As the sector transitions and technology evolves quickly, the company is investing heavily in capacities, process engineering, skilling, design and development.

During the year, we have taken steps towards expanding our market reach, especially in thermal solutions for railways and the commercial vehicle segment. Further, In-house development of Thermal solution for the Hydrogen bus and rail coach are key initiatives taken during the year.

Our R&D initiatives have been pivotal in driving innovation and ensuring that we stay ahead of the curve in a highly competitive landscape. Along with the long term technology roadmap, we havealso formulated a roadmap for automating manufacturing and inspection processes across all plants.

Another initiative we are very proud of is that of diversity, equity, and inclusion. We believe that diversity is at the centre stage of innovation and concerted efforts are being made for gender balance as well as integrating differently abled individuals into the workforce. You would be happy to note that these initiatives have had a direct impact on the company's PQCDSME parameters.

At Subros, we are committed to sustainable growth and responsible governance. We believe that sustainability is not a buzz word, it is responsibility that we all shoulder for the future generations, and at Subros we take this seriously. Our efforts in sustainability (ESG) are not limited to compliance, but are deeply ingrained in our corporate ethos. We have made significant strides in reducing our carbon footprint, enhancing energy efficiency, and promoting green practices across our operations. Our governance framework has been strengthened to ensure transparency, accountability, and ethical conduct.

Subros is deeply committed to Corporate Social Responsibility (CSR), it is integral to our mission of sustainable growth and societal impact. Our CSR initiatives span various domains, focusing on education, healthcare, and environmental sustainability. Through partnerships with local communities and NGOs, we have implemented programs aimed at enhancing educational infrastructure, providing scholarships and promoting skill development among youth.

As we stand at the forefront of huge opportunities, it is imperative that we continuously build capital and invest it in technology and people. Capital will be the ammunition needed to grow and grab the opportunities and it cannot happen with the people being skilled, re-skilled and up-skilled alone. To meet the needs of this technology transition, the aim is to evolve from 'Make in India' to 'Design and Make in India' not just for India but for the world.

The future holds immense potential for Subros. With the automotive industry poised for further growth, driven by advancements in electric vehicles and smart technologies, we are well-positioned to capitalise on these opportunities. Our strategic roadmap focuses on innovation, growth, and digital transformation to drive sustained growth and create valuefor our stakeholders.

On behalf of the Board and our entire team, I extend earnest gratitude to our esteemed customers for their trust and partnership.

A sincere thank you to our valued partners, Suzuki Motor Corporation, Japan and DENSO Corporation, Japan, for their continued support in advancing both product and process technologies and for collaborating on our future technology roadmap.

I also wish to acknowledge our supplier base, who have stood by us and evolved with us through these decades. Our dealers, bankers, and financial institutions for their collaboration as we embarkon ourgrowth trajectory.

I am deeply appreciative of our Board members, whose guidance has been invaluable through all phases of work. To Team Subros, your hard work, support, and commitment are the cornerstone of our success. It is your efforts that will propel Subros forward in this vital era of mobility. And finally, a big thank you to our Shareholders for believing in us and standing by us over the years, it is because of your trust that we are driven to do better.

Warm regards,

Shradha Suri

Chairperson & Managing Director

   

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