Importantly, we maintained a strong balance sheet with no net debt, and
our consolidated positive cash available has crossed the H 5 billion mark. Our
consolidated net worth stood at the H 50 billion mark.
Dear Shareholders,
I am delighted to address you at a very interesting inflection in your
Company's growth trajectory. The last fiscal year has been a testament to both our
financial strength and our strategic foresight. We not only delivered impressive financial
results but also positioned ourselves as a leader, to drive technological change in the
auto component industry. Despite facing headwinds from inflation and global uncertainties,
we continued to demonstrate resilience and achieved new milestones of growth. This
achievement is particularly noteworthy considering that we outperformed the
industry's overall growth rate, demonstrating our ability to thrive in a dynamic
market.
India's GDP registered an 8.2% growth in FY2023-24. With rising
consumer preference for safe and sustainable mobility, and meticulous execution of our
detailed strategy enabled us to outperform the industry and we continue to see an
attractive roadmap for growth in the coming years.
Our corporate objective of being the preferred partner to all our
customers, along with our core pillars of financial strength, technology leadership,
innovation, sustainability, and our consistent actions to achieve QCDDM (quality, cost,
delivery, development and management) have helped us earn the trust of our customers
globally, and drive change in a continually evolving and dynamic market.
Our outperformance during the fiscal is primarily a result of our
growing market share in our chosen product verticals, increasing our content per vehicle
and focusing on premiumisation. In our endeavour to diversify and strengthen Endurance, we
are focusing on expanding the 4-wheeler and non-automotive segments. Our strong vendor
base, the Endurance Vendor Association, has been instrumental in shaping our success. We
have invested in strategic backward integrations to manufacture in-house import
substitutes and technology components like valves and steel braided hoses for ABS,
aluminium forged axle clamps for inverted front forks and battery management systems, to
further sharpen our competitive edge and provide the necessary impetus to improve our
margins.
During the fiscal, we focused on enhancing our operational
efficiencies, sweating our assets, and optimising our plants, making them multi-product
and multi-customer facilities, forging strategic collaborations aligned to our long-term
strategic goals. These initiatives have helped us in our endeavour to drive profitable
growth.
During the fiscal, we won business worth H 11,980 million. Our total
4-wheeler business wins stood at H 2,810 million, which is 23% of our total order wins in
FY2023-24. The total business wins for electric vehicles till date is H 7,145 million;
this is apart from the H 3,785 million business won by our subsidiary company, Maxwell.
Financial performance
In FY2023-24, we achieved remarkable financial milestones. Our
consolidated total income grew by 16.7%, reaching H 1,03,264.86 million, compared to H
88,494.73 million in FY2022-23. This marks the first time we have surpassed the H 100
billion milestone.
Our consolidated EBITDA witnessed a substantial increase of 30.7%,
rising to H 14,135.99 million from H 10,816.93 million in the previous fiscal year. The
consolidated EBITDA margin stood at a healthy 13.7%.
Net Profit saw an impressive growth of 41.9%, amounting to H
6,804.88 million, with a net profit margin of 6.6%. This figure includes mega project
incentive of H 792.35 million from the Maharashtra State government, further enhancing our
financial performance.
Importantly, we maintained a strong balance sheet with no net debt, and
our consolidated positive cash available has crossed the H 5 billion mark. Our
consolidated net worth stood at the H 50 billion mark.
I am also delighted to inform that CRISIL and ICRA have reaffirmed our
creditworthiness with a strong AA+ Stable rating for long-term funding and the highest
possible A1+ rating for short-term funding. This recognition underscores our continued
strength in operations, financial management, customer relationships and revenue
diversification.
Crafting a sustainable roadmap
Driving sustainability is a strategic priority for Endurance. We have
developed a 2030 strategy mapping out our sustainability goals. We have identified key
sustainability metrics, set annual targets for each plant and established a robust review
mechanism to monitor the performance against each target on a monthly basis to ensure we
drive sustainable change.
At Endurance, we have achieved a carbon-neutrality percentage of 35% in
FY2023-24 against 22.6% in FY2022-23. We aim to achieve 50% carbon neutrality by 2030 by
using cleaner and renewable sources of energy viz. solar power, wind power, LPG and
natural gas in place of electric power and furnace oil, driving energy conservation
projects and creating carbon sinks through dense forests. We are also committed to achieve
zero waste to landfill across all our plants by 2030.
Our people
At the core of our success are our Endureans, whose dedication and
passion drives our Company forward. We have built a high performance culture that values
proactive, results-oriented team players, all committed to continuous improvement and
celebrating every victory along the way. We believe demonstrating our CITTI values
(Customer Centricity, Integrity, Transparency, Teamwork, Innovation) have made us a
globally trusted brand.
Diversity remains a cornerstone of our strength. We celebrate diversity
and we believe that it is through diversity that we can innovate and grow at Endurance. By
embracing a workforce that is rich in varied backgrounds and perspectives, we are able to
cultivate growth and foster innovation, one of our core values. We are committed to
valuing and integrating diverse and unique perspectives in our decision making. We have
set a target of achieving 15% gender diversity by 2030 for white collar employees and 10%
for blue collar employees at Endurance.
Our substantial investments in leadership development are paying
dividends, as we empower high-potential employees with personalised coaching and growth
plans, ensuring that we have a robust pipeline of future leaders.
We are building an EHS and sustainability-first culture at Endurance,
consistently prioritizing human lives, the environment, health, safety, and sustainability
in our decisions. The management of change initiative ensures all material changes, layout
changes, expansions, and greenfield/ brownfield projects require certification from the
EHS team. We focus on developing contractors on hazard identification and management, risk
assessment, competency mapping, training for We are laser-focused on enhancing our product
mix and profitability. We are working towards amplifying our market share in the premium
bike segment for brake assemblies, and ABS assemblies, telescopic front forks and shock
absorbers, and clutch assemblies. This will be achieved through the implementation of
advanced product technologies and optimized processes. Furthermore, our long-term vision
is to become a major player in the domain of Battery Management Systems (BMS) and other
embedded electronics products, catering to the needs of EVs and other applications their
employees, and emergency preparedness and response as part of our contractor safety
management initiatives. Daily safety champions are rotated across all plants to drive a
safety-first culture. At Endurance, our zero tolerance for unsafe acts and non-compliances
is supported by our consequence management policy. We have developed a mechanism to
benchmark, share learnings and best practices across locations for continuous improvement.
Value and Velocity - our strategic roadmap
Our vision is to be a complete solutions provider having a global
footprint with a focus on evolving technologies to ensure continuous value creation for
all our stakeholders.
We would like to maintain our leadership in the auto component space
and grow our presence in the non-automotive component landscape. We have meticulously
crafted a 2030 strategic roadmap that outlines our path to achieve this ambition. This
comprehensive plan encompasses not only our existing product verticals – machined
aluminium castings, suspension, forgings, and brake assemblies – but also exciting
new avenues for growth.
We are laser-focused on enhancing our product mix and profitability. We
are working towards amplifying our market share in the premium bike segment for brake
assemblies, and ABS assemblies, telescopic front forks and shock absorbers, and clutch
assemblies. This will be achieved through the implementation of advanced product
technologies and optimized processes. Furthermore, our long-term vision is to become a
major player in the domain of Battery Management Systems (BMS) and other embedded
electronics products, catering to the needs of EVs and other applications. Embracing
electric mobility is another key focus. We are actively exploring opportunities to expand
our offerings for electric vehicles, leveraging both existing and new product lines.
A key pillar of our strategy is achieving a 45% share for 4-wheeler
end-use in our consolidated turnover by 2030. This will be driven by our established
aluminium casting and forging business, alongside the development of innovative,
EV-agnostic product verticals. We will pursue this growth organically and inorganically,
leveraging acquisitions and strategic technology collaborations, and the introduction of
proprietary products through strategic partnerships.
The non-automotive sector is a significant strategic opportunity for
Endurance and we aim substantial growth in this sector in the coming years. Laying a
foundation for our new plant on a 11-acre site in AURIC, Dist. Chh. Sambhajinagar,
underscores our commitment to growth. Scheduled to be operational in Q1 FY2025-26, this
facility will cater to the 4-wheeler market, including EV components, as well as
non-automotive aluminium casting applications. With a projected CAPEX of H 4,009 million
and an anticipated annual revenue exceeding H 5,000 million, this investment is poised to
be a game-changer.
Our aftermarket presence is another area of strategic importance. We
have increased our penetration to 213 districts through 444 distributors in India and have
built our presence in 3 more countries taking our reach to 34 countries. We are targeting
significant growth in the coming years and aim for aftermarket to be 10% of our domestic
sales by FY2027-28.
In conclusion
As we continue to innovate and evolve, the symbiotic twin-themes of
value and velocity will continue to guide our actions. We are committed to delivering
value to our shareholders and being agile in order to adapt swiftly to the market
dynamics.
Two of our whole-time directors – Mr. Satrajit Ray, Group Chief
Financial Officer and Mr. Ramesh Gehaney, Chief Operating Officer have recently
superannuated. Their exemplary leadership has been pivotal in steering the Company towards
growth and success. While Mr. Ray would continue to be a non-executive member of the
Board, Mr. Gehaney has agreed to provide his expertise to the Company in specific areas by
way of consulting. Their full-time roles have been filled by very able professionals who
are also industry veterans- Mr. R. S. Raja Gopal Sastry, Group Chief Financial Officer and
Mr. Rajendra Abhange, Director and Chief Operating Officer. The Company will benefit from
the continuity, albeit in different capacities, of the old guard, and also from the fresh
perspectives and innovations that new minds bring to the table. As a leadership team, we
aim to build further on the shareholder value hitherto created, by channelizing the
momentum and velocity of profitable growth and the consistency with which we apply our
core values.
I take this opportunity to express my sincere gratitude to our Board of
Directors and appreciate our leadership teams, employees, esteemed customers, channel
partners, suppliers and our shareholders for their continued belief, support and
encouragement.
| Anurang Jain |
| Managing Director |