You are here » Home » Companies » Company Overview » Automobile Corporation Of Goa Ltd

Automobile Corporation Of Goa Ltd.

BSE: 505036 Sector: Auto
NSE: AUTOCORP ISIN Code: INE451C01013
BSE 11:43 | 24 Jun 418.00 15.05
(3.73%)
OPEN

408.85

HIGH

424.00

LOW

400.20

NSE 05:30 | 01 Jan Automobile Corporation Of Goa Ltd
OPEN 408.85
PREVIOUS CLOSE 402.95
VOLUME 3954
52-Week high 545.30
52-Week low 300.10
P/E
Mkt Cap.(Rs cr) 255
Buy Price 416.70
Buy Qty 1.00
Sell Price 421.90
Sell Qty 20.00
OPEN 408.85
CLOSE 402.95
VOLUME 3954
52-Week high 545.30
52-Week low 300.10
P/E
Mkt Cap.(Rs cr) 255
Buy Price 416.70
Buy Qty 1.00
Sell Price 421.90
Sell Qty 20.00

Automobile Corporation Of Goa Ltd. (AUTOCORP) - Chairman Speech

Company chairman speech

Dear Shareholders

It is a privilege to write to you and inform you regarding the exciting and challengingjourney your company had embarked upon during the financial year 2018-19 to arrive atdelivering yet another good performance and thus creating value for its stakeholders. Wecontinue to sustain the ongoing structural shift in the Auto Industry arising fromtechnological dynamics evolving customer preferences fierce competition coupled withmarket cyclicity and regulatory norms.

At the outset I congratulate the company and its workforce on completing glorious 30years of manufacturing bus bodies and compliment all the cohesive efforts put forth fornot only achieving this milestone but also for continuously striving to persist thisnoteworthy journey in the years to come. Today ACGL not only provides ample employmentopportunity in the backward areas of the state but also provides support to its localbusiness partners suppliers and the community at large for an inclusive growth in thetrue sense.

India with its growing GDP has cemented it's position as one of the fastest growingeconomies of the world powered by a recovery in consumption demand & accompanied byan upswing in private capital investment. Under the ‘National Automotive Testing andR&D Infrastructure Project' (NATRiP) the Government of India is setting up R&Dcenters to enable the industry to be on par with global standards. Government initiativeslike Make in India and Digital India have made India a very attractive FDI destination.The Government aims to develop India as a Global Manufacturing Centre and a R&D hub.With India being the emerging market for FDI building operational capacities rapidly inthe background of technological innovation has become imperative.

India's Auto sector is positioned for growth given the current low penetration risingincomes and increasing affordability. In addition with various government policiessupporting auto growth smart city initiatives GST and the National Electric MobilityMission Plan by 2026 India is expected to be the third largest automotive market in theworld. However challenges including adapting to the structural shift towards electricvehicles (EVs) a pan-India shift to Bharat Stage-VI emission by 2020 and enhanced safetynorms will have to be faced and tackled with a more agile and future-ready response. Thisyear your company has sold 5775 buses totaling to 70091 buses since the year it firstsold its bus in the year 1989. Further while facing multifold challenges your Companyachieved a profit before tax of Rs. 31.73 crores after an exceptional expense of Rs 4.17Crore related to VRS and before other comprehensive income as against Rs.32.77 Crores inthe preceding financial year. During the financial year the twofold action plan of yourcompany for achieving profits in the light of a challenging industrial scenario wasfirstly overall cost management wherein every endeavor was directed to ensure costefficiency in its purchases & operations and secondly enhancing its designingcapabilities to be in a position to offer new products to the market entailingcontemporary styling using 3D tools. Operational efficiency is well imbibed in yourcompany's competencies and efforts were channelized to enhance the same to meet the marketdemand. Further with the successful VRS implementation the Company expects to propel itsproductivity. The regulatory environment of India is more comprehensive than ever be itthe safety regulations & GST regimes directly affecting your company's productpricing emission norms which may affect your company's future volumes or robust corporatelaws including myriad amendments to the Companies Act & Rules SEBI Regulations etc.Your company has ensured that good corporate governance practices are imbibed in yourcompany's work culture and ethics to its true letter and spirit.

Your company has always been passionate about its CSR activities. The true long termperformance of a company is always reflected in the sustainable value it creates for itssurroundings communities and environment. The CSR Policy of the Company is designed onthe basis of local requirements. Inclusive education and addressing the needs of specialchildren along with empowering various classes for better employment opportunities werethe core focus areas of your Company in terms of its CSR Project for FY 18-19. We haveequipped schools in the surrounding areas of our factories with modern educative tools andfacilities and continue to provide a school bus to the most deserving special school. I ampleased to inform you that we achieved an overall positive feedback from the pastbeneficiaries of our CSR projects thereby encouraging us to shape our CSR activities morezealously. For the ensuing financial year your Company remains committed to a goal drivenapproach with a strategy which complements cost efficiencies enhancement of operationalcapacities and improvements in craftsmanship to develop bus models in to newer segmentswhich are endearing to the changing customer expectations.

I would like to acknowledge the contributions made by all the Directors and valuableinsights they have lent the company in shaping a grand vision. This year Mr. Pisharodyseparated from the Board and I on behalf of the company place ample gratitude forenriching the company with his rich experience in the industry. We have been joined by Mr.Rohit Srivastava as a Non Executive Director who brings his industrial and marketingexpertise to the Board making him another valuable asset for the Company.

I will like to congratulate the management and all the employees of the company forfacing the challenges valorously and securing yet another profitable year. I urge theworkforce to keep up the high spirit in the years ahead. We continue to seek the patronageof our shareholders and shall strive to create maximum value for all our partners &stakeholders. I would also like to thank our principal stakeholder Tata Motors Limited andthe Government of Goa for their support.

Sincerely Shrinivas Dempo