Being Future Ready means setting a vision and execution plan which is the cornerstoneof long-term sustainable growth for any company. For an organization designed fortomorrow it is important to have the ability to see ahead of time and be ready toleverage future opportunities. It is equally important to be equipped with the capabilityto act upon those opportunities through continuous augmentation of a progressive PDCAcycle.
At AIS we are continuously strengthening our business model to be Future Ready. Westrongly believe that to be future ready a company needs to have a futuristic visioncustomer centricity focused PDCA management timely investment in technology andmanagement dedication. Also these ingredients are not available "off the shelf"to any company but are created and nurtured through years of focus and hard work andalways keeping customer's interest at the center of any strategy and execution.
That the markets are continuously evolving and transforming was sharply brought outwithin and outside India during FY 2018-19. The global economy witnessedturbulence in the UK and the Euro region on account of multiple factors but growth in theUS remained on track at the back of fiscal stimuli. Asia and the Pacific continued to beamong the world's fastest-growing regions enabling global GDP to stay within the FY2017-18 range at 3.6%.
The Indian economy showed deceleration owing to multiple headwinds with declininggrowth of private consumption and muted exports which triggered a slowdown. Indian GDPgrowth closed the year at 7.1%. However the IMF World Economic Outlook report releasedin April 2019 has projected growth pick-up to 7.3% in CY 2019 and 7.5% in CY 2020.
It is heartening to note that despite the challenging macro environment AIS continuedto stay on track with profitable growth to post consolidated revenue at Rs 2931.91crores for FY 2018-19 against Rs 2703.35 crores in the previous fiscal. Netprofit before tax increased from Rs 268.66 crores to Rs 280.39 crores while EBIDTA wentup from Rs 487.17 crores to Rs 534.12 crores in the same period. Net profit after tax alsocorrespondingly went up from Rs 177.38 crores to Rs 190.18 crores an increase of7.2%.
In view of the financial performance of AIS in FY 2018-19 and in line with AIS'sDividend Policy Board has recommended a final dividend of Rs 1.0 per share.
Despite the challenging environment the automotive industry posted growth during FY2018-19. As per Society of Indian Automobile Manufacturers (SIAM) the industry produced4026047 passenger vehicles and 1112176 commercial vehicles in FY 2018-19 as comparedwith 4020267 and 895448 respectively in FY 2017-18. Overall automobile exports grew bya significant 9.6% during the year. With 77% market share in Passenger vehicles segmentAIS continued to remain a leader in this segment.
The auto industry aspires to triple in size by 2026 with the pace of infrastructuredevelopment supporting growth. These could be definitive tailwinds for Indian AutomotiveComponent Industries thereby providing AIS with huge opportunities in the future. As aleading player in the auto glass segment we stand strategically poised to harness theopportunity on the strength of our visionary focus innovation edge strong productcapabilities and extreme customer centricity.
Fast-paced developments in the Indian construction and real estate industry driven bydemand for housing and retail construction also continue to propel demand forarchitectural glass. Despite a slowdown in the realty sector post RERA and GST growth inthe segment has remained buoyant mainly for the large organized players who are clearlybenefiting from the policy reforms. This augurs well for AIS.
Recent years have seen an increasing demand for improving and better aesthetics incommercial complexes which has further fueled growth of the use of high performance glassin this segment. Growing environmental awareness is also boosting demand for highperformance glass used across segments with all customers developers architectsconsultants seeking energy saving products and replacing artificial light in offices andresidential complexes with glass that brings in sunlight. Increase in urbanization stronghousing demand thrust towards affordable housings impact of regulatory norms/codes useof higher value-added glass aesthetics and growing love for glass in our everyday lifewill ensure healthy growth of architectural glass market in future. As a customer-centricfuture-ready organization AIS continues to invest in the expansion of its capacities andcapabilities to be ready to meet future demands.
Our on-going expansion into Gujarat with our 5th automotive plant as wellas our new sub-assembly unit at Andhra Pradesh shall ensure adequate capacities areavailable at strategic locations to meet future demand. Cognizant of the role of ourpeople in the realization of this goal we shall continue to invest in their progressionthrough various learning and development initiatives aimed at their empowerment. In thisjourney we shall also remain focused on enabling the progress of the communities aroundwhich we work through our CSR charter.
As part of our CSR focus we continue to engage in education skill development andtraining of youth in and around villages of Bawal Gujarat and Roorkee we shall continueto invest in their development going forward.
During the year Mr. Eisuke Shiozaki and Mr. Gautam Thapar resigned from the Board ofDirectors. I sincerely thank Mr. Shiozaki and Mr. Thapar for their valuedcontribution to AIS as Directors. I also warmly welcome Mr. Yoji Taguchi on the Board ofAIS. I am sure his rich experience and expertize will add immense value to our Company.
The future growth prospects are clearly positive and AIS with its future-readiness isfully geared to make the most of the burgeoning potential. The future we believe isbeckoning us with its expanding bouquet of exciting new possibilities and we are ready tounleash the full potential of our strengths to harness the same.
On behalf of the Board I would like to thank all our stakeholders including ourcustomers employees partners suppliers shareholders policy makers and the communitiesaround our various manufacturing facilities for their continued support to AIS in FY2018-19. We continue to look forward for your support and encouragement in the comingyears as well.
With Best Regards
B. M. Labroo