The FY 2019 -20 was a different year filled with challenges most of them in theexternal environment. The first three quarters witnessed a decent growth for the companyon both revenues and profits however the last quarter became a show stopper. The demandin the automotive industry had already started to taper down since September 2019 onwardsand it started to reflect on our order book as well. The foundries started to beunderutilised and capex proposals got delayed. In the end of last quarter came the COVID19 pandemic which disrupted the operation completely in the second half of March 2020. Aswe implemented the "Business Continuity Program" in the company we announcedWork from Flome for employees and a complete lockdown of our factories for a substantialperiod as mandated by the Indian Government.
Despite the above disruptions which were beyond our control your company has shown atremendous resolve to provide profit growth for the FY 2019-20 even as the revenuesshowed a declining trend. Your company has taken pre-emptive actions on cost reductions inthe form of reorganisation material cost reduction and the overall expenses of thecompany for the FY 2019-20
The COVID 19 crisis has impacted lives of each one of us in one way or other way. Thebusinesses have sharply declined overall and more prominently in Automotive Industry whichimpact us the most due to our exposure to it. If we go by the external reports the AutoIndustry will see a significant downward trend in the FY 2020-21. This would reflect inthe performances of all the companies who huve significant exposure to this industry. Itis extremely difficult to assess how deep and how long this crisis would be. accordinglyit's difficult to predict anything with certainty at this stage.
It's my responsibility to thank all our valued customers and stakeholders who havegiven us the opportunity to serve them and have shown faith and confidence on us. Ouremployees need a special mention here for their resilience in difficult time and roundthe clock efforts to take company to this shape.
Complete Foundry Solution remain our motto for the India market. Wehave made the program stronger with offerings on NORICAN DIGITAL in this program.The complete offering will not only provide world class technology on equipment but itwill also help customers to achieve the desired efficiency on the line operations in areal time work environment.
Norican Digital Solutions in foundry is a unique way of integrating millions of datapoints from all equipment to arrive at possible corrective actions through the use toartificial intelligence (Al) tool. It would impact the overall throughput from the plantand reduce cost per casting. The program works to integrate process parameters and use Alto develop and suggest corrective measures. This also help in elimination of repetitivefailures through a strong Root Cause Failure Analysis being done by service andengineering teams in India. These solutions have been invested on by Norican Global andintegrated with DISA India over the last few quarters. We have started to integrate thesesolutions in the already available program of Reliability Services for Foundries in India
Our "Distribution Model" is now more than a year old. It's importantfor me to apprise you on the developments in this initiative. We have appointed 4distributors and they are functioning in the following locations with a strong physicalset up of people and warehousing: Coimbatore Ludhiana Manesar Kolhapurand Jamshedpur.
The distributor warehouses have been stocked with parts relevant for the customers inthe respective regions to service the customers locally. This FY onwards we have alsostarted to stock spares for our aluminium offerings in Die casting equipment business.
Innovation is our back bone and we had set up the R&D centre based on ourfuturistic thinking and approach more than a decade ago. We have reinforced the centrewith the right expertise in the areas of Moulding Technologies Digital and Shot Blastingmachines. This set up works very closely with Global Product Centres Sales andManufacturing to determine and deliver customised solutions for not only India but alsofor the Global Markets both in automotive and industrial space.
On behalf of the company let me take the opportunity to thank you all for your supportin retaining the leadership position for DISA India despite a challenging market andenvironment. We are and shall remain committed for enhancing the shareholder's value asalways.
|Managing Director |
|DISA India Limited |