The global economy has thrown up a new set of challenges during the Financial Year2016-17 however the Indian economy continues to strengthen notwithstanding thetemporary slowdown in business activities due to the surprise demonetisation in November2016. The Government's strong intent and focus towards digitalising the economy financialinclusion infrastructure development enhancing ease of doing business and reducing theshare of the parallel cash economy is expected to usher in a new era of economic growth.The expected rollout of the Goods and Services Tax later this year which initially maylead to a dip in growth and revenues due to teething troubles is expected to raiseIndia's GDP growth rate.
The automotive sector often regarded as the bellwether of economic growth witnessedsatisfactory performance during the year under review. With the two-wheeler segmentpredominantly driven by demand from the rural market the improved performance of theagriculture sector on the back of good monsoon helped to revive demand. The four-wheelersegment also showed traction with car sales in financial year 2016-17 increasing despitedemonetisation move. The sector still has considerable potential for achieving even higherfigures of growth in the coming years. India's low per capita vehicle ownership acrosssegments vis--vis advanced and major developing economies rise of the middle-classleading to increased availability of income for more discretionary spending favourabledemographic profile and the Government's continued thrust to infrastructure developmentfor improving connectivity and to its flagship programme Make in India' all providean exciting backdrop for growth of the sector and the ancillary industries.
While there is no ambiguity on the growth potential of the Indian automotive sector itis also certain that new technologies and trends will provide a new dimension to thenature of demand. Growing focus towards a greener and sustainable world is fuelling thedemand for energy-efficient transportation. The automotive lighting industry is seeing asteady shift towards the use of LED lamps - a lighting option which is energy-efficientgives vehicle a premium look and instant recognition on the road even in low lightconditions. As a leading Company in the automotive lighting industry with the latesttechnology and expertise to manufacture LED lamps we are confident that we are positionedto make the most of these opportunities.
During Financial Year 2016-17 your Company's profitability grew by 21% as compared toprevious year despite marginal increase in turnover of about 4%. This became possible dueto our concerted focus on reducing raw material cost and sharp focus on quality. YourCompany's debts have reduced considerably as reflected in our improved debt equity ratioof 0.05. Also the improved credit rating of A1+ is further proof of your Company'sstrengthened financial stability. Driven by the goal of enhancing shareholder value weare pleased to share that your Company's market capitalisation has crossed Rs.1300 Croresduring the year under review.
Your Company is steered by the vision of becoming the globally preferred supplier forautomotive lighting solutions. With our vision etched out we are investing ininfrastructure technology product development processes and of course in humancapital. We are revamping and augmenting our existing facility at Sanand to cater to therequirements of leading automotive manufacturers. For improving our speed-to-market weare strengthening our design office in Taiwan and relationship with suppliers. Leveragingour sustained relationship with Stanley Electric Co. Ltd. Japan global leader in theautomotive lighting sector we are confident that we will gain access to advancedtechnologies that few select players in the country have.
Going forward we will continue to keep an eagle eye on quality through innovative andproactive quality control systems. Our zero defect & zero effect initiative willreinforce the confidence of our customers for our products and drive greater businessopportunities. Our people across all locations have consistently risen to the challengesof this dynamic industry and have delivered beyond expectations driven by their passion toexcel.
Last but not the least we would like to thank all our employees partners vendors andshareholders for their continued support and our customers for their confidence in ourproducts. We are ready for the road ahead and to build greater value for all ourstakeholders.
|Regards || || |
|D.K. Jain ||Deepak Jain ||Anmol Jain |
|Chairman ||Managing Director ||Joint Managing Director |