As we conclude another satisfying year at Jay Bharat Maruti Limited Iwould like to commence this message by drawing a simile between this wonderful bird theArctic Tern' that is known for its tenacity to traverse the longest migratoryjourney across the world representative to the journey we have had with our partnersMaruti Suzuki India Limited; an association that has grown from strength-to-strength overtime propelled by the endeavor of Driving Value by
India of today is one of the fastest growing economies. Now onto anaggressive mission of being a 5-trillion Dollar economy in the next five years. This is anencouraging statistic especially with the manufacturing sector projected to be at 20% ofthe economy with the worth of 1-trillion Dollar leading to increasing investments andexports aptly supported by the smooth implementation of the new Goods and Services Tax(GST). This growth will be driven by the country's population growth trajectory andits need for infrastructure and utilities that in a way would logically drive to capacityutilization. Post the impact of the reforms like demonetization a rapid recovery waswitnessed in almost all automotive segments. As mentioned in my last year's addressour Government's dual objective of bringing the unorganized sectors into thetax-compliant mainstream and outreaching the benefits of economic growth to largersections of our society have strengthened the foundation of a new India that is already onits way towards a sustained economic growth in the coming decades.
India has been introducing and implementing an array of development andgrowth initiatives to address its long standing challenges. The Government has continuedto invest its resources in Skill India' and this initiative of training andupskilling the country's employable manpower is bringing boost to the employment. TheMake in India' along with the Ease of Doing Business' in India hasboosted investment fostered innovation and encouraged building best-in-classmanufacturing infrastructure and Special Economic Zones. Given the wave of rapidurbanization schemes such as Smart Cities and AMRUT are focused towards creating dynamicurban spaces in towns and cities across the Nation. On the infrastructure front transportand navigation systems are being upgraded with latest facilities leading to better roadsand highways therefore giving impetus to the automotive sector.
At this juncture it would be imperative to quote the AutomotiveMission Plan(AMP) 2026' which directs theIndian Automobile Industry to be a frontrunner in the "Make In India" programme as it is amongst the foremost driversof the manufacturing sector. Over the next decade the Indian automotive sector is likelyto contribute in excess of 12% of the country's GDP and comprise more than 40% of itsmanufacturing sector. The AMP envisages that the Indian Automotive Industry will grow3.5-4 times in value from its current output of around Rs 464000 cr to about Rs.1616000 Rs. 1888500 cr by 2026 thereby constituting almost 50% of the totalmanufacturing GDP.
The election results providing vast majority to the Government havecreated a very positive vibe for the economy.
I am glad to report a double digit growth in your company'srevenues by 11.48% at Rs.19969.74 million. EBIDTA witnessed an encouraging jump of 11.46 %from Rs. 1592.58 million in FY18 to Rs 1775.02 million in FY19. The EBIDTA margin in FY19stood at 8.89% from 9.18%. Your company's net profit for the year stood at Rs. 521.71million as against Rs. 588.91 million in FY18.
The First half of the Financial Year 2018-19 witnessed growth in linewith earlier years. However from the third quarter the market softened substantially andeven the festive season providing no reprieve. This slowdown has continued in the currentyear with no signs of revival affecting not only car sales but all other sectors of theautomobile industry. The Industry expects a major stimulus from the Government for theautomotive industry to bounce back which will bring the economic growth on track.
The highlight of the year has been start of production of Phase
- II at your company's state of the art plant in VithalapurGujarat which is catering to the requirements of Suzuki Motor Gujarat Private Limited. InApril 2018 JBML entered into a strategic joint venture with Ogihara with an objective ofstrengthening our tooling capabilities. The JV Company has already started its trialproduction in April 2019. The year has been satisfying for us all at Jay Bharat MarutiLtd and we intend to continue with our mission of creating value for all stakeholders byfocusing on our strengths and delivering synergistic congruence to grow and expand.
To conclude I would like to formally thank our partner Maruti SuzukiIndia Ltd for their continued patronage on our delivery prowess. I extend my sincereappreciation to the management and the staff of the company for their valued contributionto drive excellence as a practice. A big thanks to you our valued shareholders. Yourfaith and trust in our capabilities keeps motivating us to evolve higher and stronger.
Finally I would like to end this note by quoting a famous quote ofPluto!
"Excellence is not a gift but a skill that takes practice. We donot act rightly because we are Excellent' in fact we achieve
"Excellence by acting rightly"
Thank You and Jai Hind.
Surendra Kumar Arya