We successfully implemented BSVI products and also adopted several cost e_ciency
measures. This helped us deliver better-than-expected results for the Company in FY
2020-21.
Dear Shareholders,
The past year saw the COVID-19 pose formidable challenges and concerns for lives,
businesses and economies alike. The repercussions of this global health crisis have been
more severe than anticipated. The second wave of infections in early 2021 has only evinced
that these disruptions are likely to continue for some time to come.
At SMIL, the year started on a di_cult note as we faced the aftermath of COVID-19 and
the resultant lockdowns. However, with the easing of restrictions, we turned a corner and
resumed operations across all our locations. This was when we witnessed the strength of
our asset base and our ability to serve customers as demand peaked swiftly. We
successfully implemented BSVI products and also adopted several cost e_ciency measures.
This helped us deliver better-than-expected results for the Company in FY 2020-21. I am
proud to state that we witnessed substantial growth in revenue, EBITDA and PAT by 101%,
35%, and 27% respectively. I must acknowledge that our employees' unwavering dedication
and incomparable resilience are the key drivers for our success. Their support during the
di_culties of the past year was truly remarkable. I am incredibly grateful for the hard
work and tenacity shown by our entire team.
Emerging opportunities through technology shift
The automotive sector is undergoing a significant transformation & o_ering immense
growth opportunities for the industry. Disruptive technologies like connected cars,
autonomous driving, electrification & hybridization are collectively changing the
future of mobility. In the next 2-3 years newer and more stringent emission regulations
will be introduced in both on & o_ highway segments of the automotive industry. At
SMIL, we are well positioned to benefit from these trends while being at the forefront of
the technology underlying these transformations.
Leveraging Strong Foundation
SMIL enjoys a strong foundation riding on the back of our world-class technologies,
strong R&D, state-of-the-art and strategically located backward-integrated facilities.
Moreover, our joint venture, technology partnerships with the global majors, diverse
product portfolio, industry leadership in the exhaust market and strong financial
capabilities positively enable us to capitalise on the significant growth prospects ahead
of us. We are ready to leverage the solid groundwork created over the past three decades
while focussing our investments in areas supporting the opportunities ahead.
Foray into EV Components Segment
Electric vehicles are poised to change the future of mobility. Increasing environmental
concerns and sky-rocketing fuel prices are primarily attributing to the rising popularity
for EVs. We have entered into a joint venture with Kinetic Green Energy & Power
Solutions to develop battery packs & battery management systems (BMS) for EVs and
stationery applications. We will undertake design, development and assembly lithium-ion
battery packs along with BMS through this joint venture company. This joint venture marks
our entry into EV components highlighting our focus on sustainable & clean mobility to
minimize carbon footprint.
Future-Proof Strategies
We aim to emerge as solution providers for both powertrains - the internal combustion
engines and electric. Our R&D capabilities will play a pivotal role in achieving this.
We are continuously investing in creating a robust R&D core to develop solutions that
go beyond today's immediate needs. The idea is to proactively identify technologies that
cater to the changes in regulatory and legal framework in the years to come. Here again,
our strong investment capabilities give us ample opportunities to further diversify and
expand our product portfolio horizontally & vertically. As we move along
We have entered into a joint venture with Kinetic Green Energy & Power Solutions to
develop battery packs & battery management systems (BMS) for EVs and stationery
applications. We will undertake design, development and assembly lithium-ion battery packs
along with BMS through this joint venture company.
this growth path, we will focus on products and segments that enable e_cient capital
deployment, working capital management & strengthening overall ROCE.
Acknowledgments
On behalf of the board, I extend my sincerest appreciation for the entire SMIL team,
who ensured our company survived one of the most challenging years to date. I must also
deeply thank my fellow board members, the leadership team and all our employees. Without
their strength and fortitude, none of this would have been possible. I also extend my
gratitude to our customers for believing in our company and holding steady during tough
times. And finally, I thank all our suppliers, shareholders, business partners and other
stakeholders for their continued and unwavering support. We look forward to navigating the
next part of our journey with each one of you. Till then, get vaccinated, take care and
stay safe!
Best Wishes,
Ajay Relan
Managing Director