Dear Shareholders,
I am honoured to greet you with the Annual Report of FY'24. This year, we have
experienced remarkable and profitable growth, setting new records in our financial
performance.
During FY24, our consolidated total income grew by 21 % to Rs. 938 crore on a YoY
basis. The growth is higher as compared to domestic automobile industry growth of 13 % for
the same period. The consolidated EBITDA in FY24 is higher by 16% as against FY23 while
PAT growth is 15% YoY. Our profit before tax, excluding exceptional items, witnessed a 20%
increase, soaring to Rs. 72 crore from Rs. 60 crore in FY ‘23. This growth is largely
coming from our strong positioning in Electric Vehicle (EV) market and other growth
strategies.
Our standalone revenue for the year amounted to Rs. 608 crore, with significant
contributions from the sale to passenger vehicle segment at 27%, followed by the
commercial vehicle segment at 22%, and the two-wheeler segment at 24%. Further SGEM, the
EV component business, achieved an impressive 86% growth. Consequently, SGEM's
contribution to our consolidated revenue increased to 35%, up from 23%. Last year,
reflecting our better market penetration into the e-mobility sector.
In response to the rising demand of EVs in India, we initiated a capacity expansion of
MCUs to 600,000 units per annum, focusing our commitment to technology/ innovation &
sustainable future. Additionally, we are driving innovation by operating two Tech Centres
in Faridabad and Bengaluru, respectively. Our focus is on developing more products for
EV-powertrain components which helps us maintain a strong position with our customers.
We also announced our Collaboration with South Korea's Yongin Electronics co. ltd to
enter the electronic component sector as well. This Business will manufacture magnetic
components for the automotive and electronics industries, with the revenue potential of
Rs. 200 crore over the next five years. This partnership marks a significant milestone in
our efforts to enhance our domestic production capabilities for electronic components and
aligns with our goal of expending into electric and green mobility solutions.
To accelerate our progress toward our vision and upon my request, our Board of
Directors has deliberated and accorded to separate the roles of Chairman and Managing
Director. Mr. Atul Aggarwal has been elevated to Managing Director, where he will lead the
company's diversification and growth in emerging verticals. I will continue to provide
overall guidance and mentorship as Chairman. Our succession strategy is also in place,
with the next generation of leaders taking on expanded responsibilities in the company.
This approach ensures continuity while harnessing the fresh perspectives and innovative
ideas of our emerging leaders.
The combination of our seasoned management team and a vibrant, youthful workforce
positions us for success in new business areas, maintaining our competitive edge and
nurturing a culture of innovation. Simultaneously, strengthening our fastener business
enables us to allocate additional resources to new ventures, driving growth and innovation
in the EV and green energy sectors.
As a responsible corporate citizen, we are dedicated to environmental responsibility,
diversity and community engagement. Our social and diversity initiatives are deeply
embedded in our corporate ethos and are integral to our operations. We are also placing
significant emphasis on reducing our greenhouse gas (GHG) emissions to align with India's
broader goals of lowering carbon footprints and enhancing energy conservation. Our
initiatives include adopting advanced technologies and practices that minimize emissions
across our operations, improving energy efficiency, and transitioning to sustainable
energy sources. Also, by cultivating a culture of inclusion and Corporate Social
Responsibility, we are dedicated to making a tangible impact on the communities in which
we operate.
Looking ahead, we are confident and optimistic about our prospects. Our ambition is to
develop a diversified portfolio of future technologies, including EV- powertrain and power
electronic components, with healthy margins, enabling us to increase our market share in
the automotive component space. To further amplify our growth prospects and market
presence, we plan to form partnerships, capitalising on collaborative opportunities.
The progress we have made over the past year instils us with confidence in our growth
prospects and our ability to generate value for our shareholders. Our consistent dividend
payout highlights our focus on maintaining healthy financials and delivering long-term
returns to our shareholders.
I extend my heartfelt gratitude to our employees and suppliers for their relentless
efforts in ensuring the seamless and efficient operation of our business as well as our
esteemed Board of Directors for their sage advice and strategic guidance. I also thank our
customers for their continued trust and support, our shareholders for their patience and
belief in our vision, the government machinery for their cooperation, and our
business/technical partners for their unwavering collaboration.
Sincerely,
Anil Aggarwal
Chairman