As we conclude another financial year at Jay Bharat Maruti Limited it is my pleasureto present my thoughts to you at the 33rd Annual General Meeting of your company.
Humankind is facing the biggest challenge in the form of COVID-19 crisis which hascrippled the economies health systems industries and impacted every human being. It wasthe first time in our history that the entire nation came to a standstill for many monthstogether.
Unprecedented ways to minimize the impact of this blow were undertaken by theGovernment industry and organizations at large. In Jay Bharat Maruti Limited we ensuredcompliance to all Government guidelines along with the well-being of our employees whichis of utmost importance to us. Continuous education combined with self-discipline andadherence to safety measures being the focal points of business continuity when we resumedproduction. The core of 'Selfresilience' is the ability to adapt fast and bounce back k byturning adversity into opportunity. Same has held true for us in this COVID era. SwamiVivekananda once I said Take up one idea make that one idea your life think of itdream of it let the brain muscles nerves every part of your body be full of that ideaand don't let any obstacles stop you." Via this inspiring quote I draw a parallel tothe sapling that springs to life in the most difficult terrain which in a way truly'Defines Its Resilience' and that is the true persona of Jay Bharat Maruti Ltd.
The aspiration to move ahead and see opportunity in the making was is and will bepossible only when we are fundamentally flexible agile and have a foundation thatsupports our business and future growth endeavors. The foundation of your organization isattributed to our partner Maruti Suzuki India Limited that has stood the test of time andgained strength with the reinforced belief and trust we continue building together.Current scenario has led to emergence of new opportunities redefined skill sets andadapting of technical aspects of working thereby evolving to a 'new normal'' in the leasttime. The Indian Government has encouraged all these advancements in the form of 'AtmaNirbhar Bharat' 'Vocal for Local' and 'Digital India' initiatives. This as a collectiveeffort will lead to a faster recovery of the Indian economy thereby your company. We mustensure that our commitment towards this national call is consistent and continuous.
At this juncture it would be imperative to quote the 'Automotive Mission Plan(AMP)2026' which directs the Indian Automobile Industry to be a front runner in the "MakeIn India" programme as it is amongst the foremost drivers of the manufacturingsector. Over the next decade the Indian automotive sector is likely to contribute inexcess of 12% of the country's GDP and comprise more than 40% of its manufacturing sector.The AMP envisages that the Indian Automotive Industry will grow 3.54 times in value fromits current output of around Rs. 464000 Cr to about Rs. 1616000 - Rs.1888500 Cr by2026 thereby constituting almost 50% of the total manufacturing GDP.
Indian Auto Market is facing continuous slow down from last two fiscal years and FY20started with lower production due to contraction of demand which continued to H1 of FY20however some improvement in consumer sentiment was witnessed during this festive season inH2 of FY20 but overall the automobile industry has not recovered from demandcontraction. Due to higher fixed costs and lower volumes as a result of slowdown in theAuto Market your Company's revenues declined by 16.90% at Rs. 16594.12 million fromprevious years Rs. 19969.74 Million. Your company further faced loss of production andsales arising due to pandemic spread in the last quarter of FY20 which extended to Q1 ofFY21. EBIDTA of the company also witnessed a shortfall of 19.58 % from Rs. 1775.02 millionin FY19 to Rs. 1427.38 million. The EBIDTA margin in FY20 stood at 8.60% from 8.89%. Yourcompany's net profit for the year stood at Rs. 280.20 million as against Rs. 521.71million in FY19.
The next fiscal year will be challenging for the company due to impact of COVID-19. TheCompany has restarted operating at low capacity after Unlock 1.0 and we are expectingthat demand will improve in coming months as people may move to self-mobility.
To conclude I would like to thank our partner Maruti Suzuki India Ltd for theircontinued patronage on our delivery prowess. I extend my sincere appreciation to themanagement and the staff of the company for their valued contribution to drive excellenceas a practice. A big thanks to you our valued shareholders. Your faith and trust in ourcapabilities helps us gain the foundation that will enable us grow from strength tostrength.
Last but not the least a strong team bound by collective values and foundationcontinues to be our biggest pillar of growth and support.
Finally I would like to end this note by stating
"The key to success is to focus on the execution in order to meet the goals we setfor ourselves and not spend our energies thinking about the obstacles that can stopus"