Dear Shareholders,
As I write to you following our successful IPO and listing, I am filled
with pride and gratitude. This milestone marks a new chapter for Azad Engineering Limited,
and I am excited to share our progress and future plans with you. Our annual report this
year revolves around the theme "Precision, Progress, Performance," perfectly
encapsulating our unwavering commitment to excellence and our continuous efforts
to push the boundaries of growth and innovation.
Since our inception, Azad Engineering Limited has been on a remarkable
journey characterised by growth, innovation, and a deepening influence in the sectors we
serve. Our ability to anticipate market needs and deliver exceptional value has been
instrumental in forging strong strategic partnerships and securing prestigious contracts.
Notably, our recent agreements with Rolls Royce,
Siemens Energy, Baker Hughes, and GTRE/DRDO under the Ministry of
Defence highlight our technical capability and commitment to excellence. Our order book of
~3200 crores and significantly expanding total addressable market (TAM) reflect our
capability to ascend the value chain, meeting the rigorous demands of our global clients.
Financial Performance
Our financial performance over the past fiscal year has been strong,
demonstrating our ability to execute our strategy effectively and deliver sustainable
growth. For FY24, our revenue from operations reached ' 3,408 million, reflecting a
robust increase of 35.40% compared to FY23. Our enhanced capabilities, strategic
partnerships, and expanded market presence drove this significant growth.
Our Adjusted EBITDA also showed impressive growth, rising by 48% to '
1,175 million. This improvement was accompanied by a healthy increase in Adjusted EBITDA
margins, which expanded from 31.6% in FY23 to 34.2% in FY24. The increase in EBITDA and
margins underscores our focus on operational efficiency and cost management, allowing us
to maintain a competitive edge in a challenging market environment. Additionally, Profit
After Tax (PAT) saw a remarkable increase of 410.61%, reaching ' 586 million for
FY24. The PAT margin improved from 3.37% in FY23 to 17.19% in FY24 owing to our
significant debt reduction through IPO proceeds. Our focus on profitability reflects our
effective cost management, operational strategies, and our ability to scale and grow
sustainably.
Strategic Growth and Acquisitions
In alignment with our strategic growth objectives, we have successfully
broadened our manufacturing competencies by acquiring assets from Leo Primecomp Pvt. Ltd
and VTC Surface Technologies Pvt. Ltd. These
We are focused on leveraging our enhanced capabilities and strategic
partnerships to drive sustained growth. We are committed to delivering innovative
solutions that contribute to advancing the industries we serve. acquisitions have enhanced
our capabilities in heavy machining and special processes, strengthening our position
across key sectors, including nuclear, gas, thermal, and oil & gas. Our ongoing
investments in cutting- edge technology and the integration of new capabilities ensure we
remain at the forefront of innovation, ready to meet the evolving needs of our clients.
Expanding Market Presence and Strategic Partnerships
Post our IPO, we have onboarded marquee customers such as Rolls Royce
and signed long-term contracts. Our estimated size of contracts is 3200 crores across a
diversified portfolio of high-complexity precision components that are mission and
life-critical.
Focus on Innovation and Operational Excellence
We are focused on leveraging our enhanced capabilities and strategic
partnerships to drive sustained growth. We are committed to delivering innovative
solutions that contribute to advancing the industries we serve. Our new contracts
underscore our role as a strategic supplier in the global supply chain, particularly in
the high-complexity precision components sector.
Strengthening Our Competitive Edge
Our business model is built on manufacturing excellence, stringent
quality assurance, and collaborative partnerships. We specialise in highly engineered,
mission and life-critical components for the aerospace, defense, energy, and oil & gas
sectors. By focusing on manufacturing efficiencies, rigorous quality standards, and
automation, we deliver a cost advantage and ensure reliability in the supply chain for our
global customers. Our state-of-the-art manufacturing facilities and advanced technologies,
including robotics for precision engineering, are a testament to our commitment to
innovation and quality.
Building Long-term Relationships and Market Position
Moreover, our robust entry barriers, including advanced manufacturing
infrastructure, technical expertise, and rigorous qualification processes, ensure that we
maintain a strong competitive position in the market.
We have built a reputation as a critical supplier in the aerospace and
defence markets, driving growth through innovation, precision, and strategic partnerships.
ESG and Future Outlook
We are also deeply committed to Environmental, Social, and Governance
(ESG) principles, recognising that sustainable growth is essential for long-term success.
This year, we are proud to include our first Business Responsibility
and Sustainability Report (BRSR) in our annual report, reflecting our dedication to
transparency and accountability in our operations.
Our ESG efforts focus on positively impacting our communities and
fostering an inclusive and responsible approach to business growth.
As we continue this exciting journey,
I want to thank our shareholders for your unwavering support and
confidence in Azad Engineering Limited. Your trust and belief in our vision drive us to
achieve new heights. We are enthusiastic about the opportunities and remain dedicated to
executing our strategic initiatives to deliver sustained growth and value. Together, we
are poised to achieve remarkable success in the future.
Thank you for being a part of our journey.
| Sincerely, |
| Rakesh Chopdar Chairman & CEO |