These are challenging times and I hope you and all other members of your family aresafe and in good health.
We are facing a health emergency that is disrupting the lives and livelihoods ofmillions of people across the world. It is reassuring to note that India's response to theCOVID-19 outbreak has been prompt and the Government of India has already announced aRs.1.7 lakh crores relief package to help support the lives and livelihoods of millions ofpeople. The Reserve Bank of India's (RBI) accommodative monetary policy has also helpedease the credit scenario to a very large extent.
I salute the spirit and solidarity of all citizens of our country especially doctorsnurses healthcare workers and other officials who are endangering their lives to helpsave others. I am happy to share that your Company has pledged assistance through directcontribution of Rs.1.50 crores to the Prime Minister's Citizen Assistance and Relief inEmergency Situations Fund (PMCARES Fund) to help combat the COVID-19 pandemic.
Our Group is committed to assist the central and state governments and localauthorities in all possible ways to deal with the pandemic. As part of our corporatesocial responsibility initiatives we are addressing the food requirements of the localcommunity and will continue to scale up our efforts in the coming days.
I would like to assure the shareholders that your Company has taken every step toensure safety of the employees and the community. We have established world-class safetymeasures and preventive protocols at all locations. We are taking employees health andsafety as the number one priority during the lockdown unlock and ramp up period.
The global economy continues to grapple with headwinds arising from the COVID-19pandemic with many countries expected to witness sharp decline in GDP. While it is tooearly to talk about recovery IMF and other agencies are predicting recovery in CY 2021driven by demand improvement and resumption of activities globally. Whether the recoveryis V' shaped or U' shaped depends on how quickly normal economic activity canbe resumed post lockdowns without further loss of lives and livelihoods. India is goingthrough a graded exit from the lockdown depending on the evolving scenario in the states.According to the Ministry of Statistics and Programme Implementation Government of IndiaIndia's economy grew ~5% in FY 2019-20 despite a weak demand scenario acrossalmost all sectors of the economy.
India's auto industry which consists of automobiles and auto components witnessed oneof its most challenging years during FY 2019-20 with declining sales figures vis--visthe previous few years owing to weak domestic demand and falling exports. We are hopingthat there will be marginal revival after the COVID crisis blows over because the creditscenario in India is very encouraging right now which can help drive demand.
We recorded revenues of Rs.952 crores and EBITDA of Rs.101 crores. Our declinein numbers is a direct result of low production among our key OEM clients. This decline inproduction is due to an extremely weak demand scenario in the Commercial Vehicle (CV)industry as OEMs remain cautious in ramping up BS-VI vehicles production.
We expected a decent performance for FY 2020-21 but the pandemic is set to impact ourbusiness brutally during the first half of the year and to a limited extent thereafter.However we look forward to growth in the coming years.
During the year we inaugurated our new state-of-the-art assembly line whichuses cutting-edge technology and contemporary equipment like robotic painting line andIoT-enabled processes. The facility also enables a digitally driven paperless shop-floorin line with the Industry 4.0 trend of automation and data exchange in the manufacturingsector. It has already delivered a batch of products and facilitated improved coststructure and productivity. We remain confident that our recent capital expansion willhelp us to steer growth and improve margins once volumes return in the industry.
We have also successfully overcome the technical challenges in the way of manufacturingBS-VI-complaint products and now are capable of catering to this market requirement.
Over the years we have embraced IT systems that strengthen our core. We have migratedto HANA version of SAP which facilitates data-driven decision-making at AAL increasingour efficiency and productivity. IT systems and processes play a big role in theorganisation as we continue to focus on automation in Human Resource Management Systemvendor portal e-way bills to align the enterprise better with the emerging trends ofIndustry 4.0.
Despite growing focus on technology our people continue to be pivotal to our successand sustainability. We emphasise a congenial work environment that inspires talent todeliver their best every day. We invest in developing the skills of our teams and engagingwith them continuously to build a collaborative work environment.
Going forward we will prioritise:
Grow revenue and profitability
Enhanced engagement with existing and new customers
Continuous improvement in safety manufacturing processes and quality systems
Operational excellence and focus on Industry 4.0
Focus on new product development
Employee engagement and talent management
We will continue to manage and mitigate the evolving risk scenario in the business anddeliver on sustainability commitments to create value for all stakeholders.
On behalf of the Board and the leadership team I thank you for your continued trustand support in all our endeavours.
Dr. B.N. Kalyani