Dear Shareholders,
I am very excited to present to you the seventeenth annual report of
your Company for the Financial Year 2023-24, the year which brought us a strong mix of
opportunities as well as challenges, driven by global & local macroeconomic factors
and related industry drivers.
Let me start on a very positive note that India is showcasing to the
world a robust and resilient growth story driven by perseverance, ingenuity, and vision.
In spite of unprecedented challenges in recent years and more recent geopolitical
conflicts, the Indian economy has demonstrated a remarkable ability to bounce back and
convert challenges into opportunities while striving to achieve strong, sustainable,
balanced and inclusive growth. The various reforms that have been initiated within the
country have led to GDP growth of 8.2% in the financial year ending March of 2024, well
above recent estimates of 7.6%, to establish India as the fastest-growing major economy in
the world, for the first time in decades, perhaps ever.
The rest of the global economy also remains remarkably resilient, with
growth holding steady as inflation rates stabilize and return towards their respective
targets in most developed economies. This journey has been very eventful, starting with
supply-chain disruptions in the aftermath of the pandemic, two long and continuing wars
that have triggered a global energy and food crisis, considerable surge in inflation,
followed more recently by a globally synchronized tightening of monetary policies. Yet,
despite many gloomy predictions, the world has mostly avoided recession, the banking
system has proved largely resilient and major emerging market economies did not suffer
major declines as we have previously experienced.
The International Monetary Fund (IMF) projects stable growth in most
developing economies as they each work hard to approach a soft economic landing with most
policymakers aiming to keep inflation closer to their target levels and calibrate their
monetary policies to balance inflation, growth and employment levels..
In India, the government remains focused on investing in the country's
infrastructure; adding significantly to roads and highways, while also expanding rail and
air networks at a record pace. Many initiatives have been introduced under the
Aatmanirbhar Bharat and Make in India programmes to enhance India's manufacturing
capabilities and exports across industries. A common thread through all the reforms
undertaken has been the use of technology and digital platforms. India's digitalization
reforms and resulting efficiency gains, higher financial inclusion and more economic
opportunities stand as a model for other economies to follow. India's growth is expected
to remain strong, supported by macroeconomic factors and financial stability.
As is being said around the world, the next decade is surely going to
be India's winning decade. All indicators, economic and social point solidly in this
direction. To keep up with this predicted growth, several auto makers who are our
customers, have started investing heavily in various segments of the industry during the
last few months and are expanding their production capacities. These developments
certainly bode very well for our Company's business.
I am very pleased to report that Sintercom has delivered strong
performance during the financial year 2023-24. The company's focus on various cost saving
initiatives and efficiency improvements have resulted in significant increase in all key
financial indicators for the year. For the year, our company's revenues grew 6.7% while
EBITDA our key profit indicator grew by 27% on a year over year basis.
Significant technological advancements in electric vehicles, autonomous
driving, connectivity, digital sales, a growing used car sales market, focus on safety
features and expanding retail financing initiatives are redefining the industry's growth
momentum. Modern technologies like the Internet of Things (loT), Artificial Intelligence
(Al), and Machine Learning (ML) among others will significantly aid advanced driving
assistance, communication with other vehicles, managing traffic, as well as preventing
accidents.
Even vehicle transmissions are getting a makeover. They're not just
about gears anymore; they're about enhancing both performance and efficiency with both
traditional ICE as well as new and advanced electric powertrains.
Sintercom is extremely well positioned to take a leap forward from
where we are today. The company is seeing a strong order book, as demand grows for our
products across the industry, supported by our customer and product diversification
strategies and our development of newer technologies to meet future industry requirements.
Our collective view at Sintercom is that it is not merely about
reaching the top of the company's potential; it is also about continually pushing
boundaries, seeking new challenges, and evolving towards our ultimate potential While our
road ahead together may present some twists, there is always joy in the drive forward.
We at Sintercom are working towards a common goal: to make traditional
mobility powertrains ever more efficient and eco-friendlier, while developing new products
to support the industry's evolution towards alternate powertrains. We will continue to
stay focused on our foundational principles of resource optimisation, process
streamlining, smart goal setting, leveraging new technologies and most importantly
learning and adapting as the world around us evolves.
On behalf of the Management and Board of Directors of Sintercom, I
express our collective gratitude for your trust and confidence in the Company's ongoing
journey and growth. We look forward to your continued support as we propel our Company
towards continued future success. Your Company remains committed to providing greater
value to our customers, delivering strong financial results to our investors, and
ultimately making a real positive difference in our communities. We remain committed to
engage with all our stakeholders to create superior value as we proceed on a very exciting
journey together!
My best wishes to everyone to remain safe and healthy.