You are here » Home » Companies » Company Overview » Autoline Industries Ltd

Autoline Industries Ltd.

BSE: 532797 Sector: Auto
NSE: AUTOIND ISIN Code: INE718H01014
BSE LIVE 15:40 | 02 Dec 52.05 -0.50
(-0.95%)
OPEN

52.60

HIGH

53.50

LOW

51.00

NSE LIVE 15:30 | 02 Dec 51.95 -0.45
(-0.86%)
OPEN

52.70

HIGH

53.85

LOW

51.05

OPEN 52.60
PREVIOUS CLOSE 52.55
VOLUME 5218
52-Week high 68.45
52-Week low 34.10
P/E
Mkt Cap.(Rs cr) 81.41
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 52.60
CLOSE 52.55
VOLUME 5218
52-Week high 68.45
52-Week low 34.10
P/E
Mkt Cap.(Rs cr) 81.41
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Autoline Industries Ltd. (AUTOIND) - Chairman Speech

Company chairman speech

AUTOLINE INDUSTRIES LIMITED ANNUAL REPORT 2011-2012 CHAIRMAN'S REPORT The Backdrop The financial year 2011-12 was marked by challenges in both, the domestic as well as the global economy. The challenges of high fiscal deficit, sticky inflation and high fuel prices appear to have impacted domestic growth. On the global front,Euro Zone sovereign debt default concern and uncertainty overgrowth in USA loom large and resultantly the macroeconomic scenario remains uncertain. Notwithstanding the challenges, the Indian economy is expected to grow by 6.9 per cent in financial year 2012-13 as per the World Bank. For the longer term, however they have pegged growth at 7.2 per cent and 7.4 per cent in fiscal years 2013-14 and 2014-15, respectively in the report titled 'Global Economic Prospects'. The Automobile sector in India in 2012-13 is estimated to grow by 10-12 per cent as per industry body Society of Indian Automotive Manufacturers (SIAM). The growth is likely to be fuelled by Passenger Cars and the fast growing Multi Utility Vehicle (MUVs) segment on the basis of supportive business environment, rising disposable incomes and favorable demographics. The Indian Auto Components Industry a sunrise industry, currently valued at USD 30 billion is estimated to grow at USD 100 billion by 2020 and derives its growth impetus from the growing Automobile Industry. This translates into a CAGR growth of over 15 per cent as per Ikon Marketing Consultants. Further, Indian share in world auto components is estimated to grow over 3 per cent by 2015-16 against a meagre 0.4 per cent in 2003-04. The Performance During the year, your Company continued to focus on innovation which we believe will pave the way for long term growth despite near term pains. Your Company, completed the amalgamation of business activities with its subsidiaries Nirmiti Autocomponents Pvt. Ltd. and Western Pressings Ltd. and are extremely confident of scaling your Company's operational performance. Visible signs of this have already been reflected in your Company's overall financial performance during the year. On a consolidated basis your Company recorded Net Sales of Rs.7,483.5 million, a growth of 14 per cent while bottom-line increased by 45 per cent to Rs.397 million. The improved contribution to the topline came in from new products added and also addition of new clients and increased order booking from existing clients. Our industry positioning of being the most preferred component maker for International and Domestic OEMs has aided our efforts. Your Company has been able to expand its client base and improve its order bookings from existing clients in 2012 fiscal. During the year, due to change in accounting policies the inventories increased. However, the increase in finance costs have been in line with increased business activities and an overall high interest rate scenario in the economy. Further, the Industrial Promotion Subsidy of Rs.204 million received during the year as part of the Mega Project Status awarded to the Chakan Plant by the Government of Maharashtra has improved your Company's bottomline performance. The Mega Project status was awarded for providing minimum employment to 1,000 people and also undertaking investments of approximately Rs.2,000 million towards regional development. I am glad to inform you that the Board of Directors has recommended a dividend of 40 per cent for FY 2012 as compared to 30 per cent in FY 2011. Moving Ahead aided by Innovation Your Company's in-house designing team has introduced a number of new products during the year. The Adjustable & Collapsible Pedal Assembly, High Deck Load Body, Park Brake Assembly and Jack Assembly are a result of our focus on driving growth through innovation,thus exemplifying the value engineering expertise of our company. While, most of these products have been tested and approved by leading international and domestic OEMs - Volkswagen, Daimler India, Ashok Leyland - Nissan, Asia Motor Works, Mahindra Navistar and Tata Motors, your Company is now set to tap the incremental growth opportunities arising from them. Further, during the year,your Company earned recognition for its in-house Designing & Engineering team from Volkswagen and General Motors, global automakers to provide cost efficient pedal assemblies and brake assemblies. During the previous year your Company had proposed setting up a manufacturing plant at Dharwad in Southern India, to cater to the growing needs of Domestic and International OEMs and particularly for the IRIS and ZIP models manufactured by Tata Motors. I am pleased to inform you that not only is work at the said plant site well underway, but also that your Company has started supplying components from a rented shed in Uttarakhand plant given the rising demand from our customers. Tapping Opportunities through Innovation While opportunities are abound in the long run, your Company would continue to focus on product and service innovation and improvement. The testimony to this is the overwhelming response received from OEMs for the beta version of ' Meshwork Morpher Pro V ' Software developed by your Company's Associate company. This application helps to reduce overall cost and time taken for product development and testing. Your Company is therefore hopeful and optimistic of offering added value products to its existing and prospective clients by offering this product and thereby enhancing its revenue streams during FY 2013. The recognition of your Company's value engineering expertise by International OEMs like General Motors, Volkswagen, Daimler, Ashok Leyland - Nissan, Asia Motor Works, Tata Motors and Mahindra Navistar continues to propel your Company's growth, by enabling the development of newer, high performance, value added and low cost products in your Company's portfolio. This will help us not only improve your Company's business performance but also strengthen your Company's relationships with the existing as well as prospective clients. Your Company plans to continue investing in green field and brown field expansion projects to service the growing demand of OEMs. Your Company is therefore committed to a long-term and a balanced strategy of profitable growth and strong returns. Further, with roll out of Tata NANO from Sanand, Gujarat your Company is planning to set up its manufacturing base in close proximity to OEMs and at an opportune time may expand its operations. Though I am optimistic of your Company's performance over the longer term, a cautious approach still needs to be maintained. Keeping in view the ongoing global and domestic environment, possibility of facing an unexpected challenge in the near future cannot be ruled out. However, your Company's untiring efforts of adhering to global quality standards, enhancing production efficiency, upgrading to fast changing requirements of OEMs, customization of products & solutions, and a strong focus on product innovation and improvisation have yielded an overall improvement in performance. Vote of Thanks I extend my deepest thanks to all those who have helped us achieve continued success and who will remain the vital forces in shaping our history-our employees, our customers, our suppliers, our business partners, our bankers and our stockholders. I look forward to the opportunities ahead of us as your Company continues to earn your trust, your confidence and your pride. I am also grateful to our Management Team for its relentless efforts to redefine our growth strategy and to the Board of Directors for their continuing guidance. We look forward to continued success and profitable growth. P.B. Nimbalkar Chairman

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard