Dear Fellow Shareholder,
On behalf of the Board of Directors of Dynamatic Technologies Limited
and its subsidiaries, I take pleasure in presenting you with Audited Financial Statements
for the year 2023-24.
During the year under review, your Company recorded Consolidated Net
Revenue of '14,293 million with Consolidated EBITDA of '1,594 million & Profit After
Tax of '1,218 million.
Last year, we shared with you the progress of our transition to the new
and larger facility, Dynamatic Aerotropolis, strategically located near Bangalore
International Airport. This state-of-the-art facility, together with our wholly owned
subsidiary, Dynamatic Manufacturing Limited, continues to be instrumental in driving our
export production of aerospace products. These advancements underline our commitment to
growth and excellence in the global aerospace industry.
Spanning 1.5 million square feet at Dynamatic Aerotropolis, with
240,000 square feet of built-up area, and an additional 60,000 square feet at Dynamatic
Manufacturing Limited dedicated to detail parts manufacturing, we have significantly
increased our capacity. This expansion equips us to efficiently handle orders for the
assembly of large aerostructures as well as meet the growing global demand for high-
quality parts manufacturing.
The fiscal year 2023-2024 has been a period of strategic development
for Dynamatic Technologies spanning our Hydraulics, Aerospace, and Metallurgy divisions.
Dynamatic 2.0: We continued investing in advanced manufacturing
technologies to enhance production efficiency and quality in aerospace components. We also
matured our SAP systems, focusing on the new
'S-curve', which is centralised, digitised, standardised, systemised,
enhanced, and collaborative.
Aerospace Division:
Dynamatic has been supplying flight critical Flap-Track-Beam Assemblies
to Airbus for the past 17 years, first as Tier-II and then as Tier-I. Today your company
produces Flap-Track- Beam Assemblies on a global sole-source basis directly for the A330
aircraft and indirectly for the A320 Family aircraft, with superior quality and deliver
performance making Dynamatic a center of excellence for this critical product for Airbus.
Airbus A220 Doors Program launched by Shri Jyotiraditya Scindia, Union
Minister for Civil Aviation, General Vijay Kumar Singh (Retd), Minister of State for Civil
Aviation and Shri Vumlunmang Vualnam, Secretary, Civil Aviation along with Remi Maillard,
President, Airbus India on 8th February 2024.
During the year under review, your company has signed a long-term
contract with Airbus to manufacture and supply main passenger doors, service doors, cargo
doors and over-wing emergency exit doors for A220 aircraft. Aircraft doors are critical
structures, incorporating advanced technologies to meet stringent requirements for safety
and overall efficiency.
Dynamatic Technologies has also signed a long-term contract with
Dassault Aviation, a world-renowned aerospace manufacturer, for the manufacturing and
assembly of flight-critical aero structures for the Falcon 6X.
Contract Signing: Dynamatic Technologies & Dassault Aviation on
Falcon 6XAerostructures and Primary Parts on 18th Jan 2024
As part of the Make in India initiative, Dynamatic Technologies will
leverage its expertise in precision engineering and state-of-the-art facilities to
manufacture and assemble critical aero structures for Dassault's flagship Falcon 6X
aircraft under this agreement. This collaboration further strengthens the relationship
between the two companies, while showcasing Dynamatic's position as a preferred supplier
of aero structures in the aerospace industry.
Dynamatic Technologies entered a significant partnership with Deutsche
Aircraft to manufacture the rear fuselage for the D328eco regional turboprop aircraft.
This collaboration supports the "Make in India" initiative and positions us as a
pivotal player in the global aviation supply chain.
Hydraulics Division:
Over the past year, we introduced new high- performance hydraulic pumps
and systems aimed at enhancing efficiency and lowering operational costs for industrial
applications. However, based on field feedback, we had to temporarily reduce production
and implement some ongoing adjustments to the product. These changes affected sales and
overall profitability. Despite these challenges, the product continues to provide
significant value to our customer and remains a crucial component of our future strategy.
The Hydraulics segment faced a slowdown this year due to the
aforementioned pause for product design modification and also due to poor monsoon
conditions in India, impacting revenue and margins. However, business recovery started
during the second half.
Metallurgy Division:
During the past two years your company's metallurgy division has been
shrinking its exposure to the automotive sector and has been focusing on a strategic
transition towards aerospace and defence. The corporate restructuring completed last year
enabled Eisenwerk Erla GmbH, Germany, to minimize the impact of reduced demand on its
profitability. Looking forward, the subsidiary's strategic location and technical
expertise are positioning it to enter the aerospace and defence sectors.
Dynamatic's credit rating of 'IND A' from India Ratings & Research
(Ind-Ra) reflects the company's financial health, operational efficiency and effective
strategic management. With recently created facilities and a stable outlook, your company
is optimised for future growth and internally generated investment opportunities.
Once again, I would like to express my gratitude for your continued
support as we navigate through these challenging times. With our diversified business
segments and strategic initiatives, I am confident that Dynamatic will prosper in the
future.
I thank you for your continued support.
Sincerely,
Udayant Malhoutra
Chief Executive Officer & Managing Director