I am pleased to share with you that 2017-18 has been another year of stellarperformance by your Company when it pushed the limits even further. The new water marks weshould all be proud of are the highest ever sale of 174873 units crossing the 100000Medium & Heavy Commercial Vehicles (M&HCV) truck sale in a year and rolling out200000th Light Commercial Vehicles (LCV) on the road. It is remarkable thatthe largest volume growth in the domestic truck sales is from the Northern regionoutpacing our traditional Southern stronghold where we continue to be market leaders.Achieving a record revenue of ' 26248 Crores and a record profit of ' 1563 Crorestogether with sustaining the market share gains in a competitive environment is quitecommendable.
There were some tail winds during the year in the form of GDP growth at 7.4% thrust ininfrastructure and road construction proliferation in logistics activities andoverloading restriction in some markets. Nonetheless in the face of fierce competitivepressures and intrinsic challenges in demand prediction to sustain market share acrosssegments without sacrificing profitability is a culmination of the management'spainstaking efforts of the last few years to strengthen the Company through the strategiclevers of operational efficiency appropriate products market reach and "CustomerFirst" attitude.
On the product front last year 17 new products were launched across differentsegments /EGR performed extremely well surpassing all expectations and swappablebatteries as one of the options in electric vehicles was introduced. The productscontinued to receive industry recognition as follows validating your Company's philosophyof product emphasis as a key driver of our business.
M&HCV 3718 Plus model bagged the Truck of the Year award
S unshine school bus won the Safety Award for excellence in school transport
JanBus received the Safety Award for Excellence in Public Transport
LCV Partner model coveted the LCV Cargo Carrier of the Year award
In business performance the LCV business grew by 37% and also gained in market share.The Aftermarket business maintained a growth momentum achieving a 5-year CAGR of 20%. Onan on-going basis customer touch points rose and further digital applications werelaunched to support after-market initiatives. The Defence business grew by 32% last yearwith a 5-year CAGR of 23% becoming one of the largest firms in the private sector.
Our investments in international operations have started to pay off as our exports grew38% driving us towards our goal of having a third of our revenues from outside India.
Referring to our other accomplishments the Hosur plant got the prestigious DemingAward following an earlier one for the Pant Nagar plant. Your Company was awarded the AA+credit rating by ICRA the highest in 20 years bearing testimony to an exemplary all-roundfinancial performance. Last but not the least we were once again recognised as one of thetop 40 Brands in India.
On the social side the "Road to School" initiative is marching onsuccessfully.
It now covers 153 schools with 19700 children and the scope has been enlarged to coverhealth hygiene and nutrition. We ushered in the 70th year anniversary of yourCompany by planting over 70000 trees across the facilities creating the largest manmadewetland forest in a swamp in our Technical Center and also helping rebuild lakes in thecommunities we operate in.
In the years to follow to sustain the growth momentum and take a great leap forwardyour Company is gearing to set globally benchmarked standards in reliability andafter-market support. There will be added thrust on cost control cash generation andROCE. Furthermore ambitious plans will be rolled out soon to grow the LCV businessInternational Operations and Defence mobility even further On the Electric Vehicles yourCompany will leverage on the proven success of the Optare range in United Kingdom toposition integrated offerings that straddle developed and emerging markets.
Having performed well in the recent years in the highs and lows of this business
I believe your Company is at a striking distance from being among the Global majors inthe commercial vehicle field with attributes of operational efficiency cost controlquality and reliability and product innovation.
In conclusion 2017-18 has been a year in which your Company raised the bar onperformance in all fronts and the success without doubt is owed largely to the committedemployees across the board. I would like to extend my grateful appreciation to the teamand hope they will continue to excel undeterred in their endeavours. It is equallyimportant that we acknowledge the resolute faith and support of our extended family ofshareholders customers dealers suppliers financial institutions and strategic partnerswho travel with us in our journey. I would like to extend my deepest appreciation to themand hope to see this bond grow even stronger under your Company's credo AapKi Jeet HamariJeet.
Dheeraj G Hinduja
June 11 2018