As we conclude another financial year at JBM Auto Limited it is my pleasure to presentmy thoughts to you at the 24th Annual General Meeting of your company. Over the past fewmonths we have been deliberating on the sudden shift that the world has been subjected todue to the COVID-19 pandemic. Such unprecedented times have completely crippled theeconomies health systems and industries. For the first time ever most part of the worldincluding our country came to a standstill for many months together. Howeverunprecedented times bring forth plethora of opportunities and necessitates fighter'sspirit.
The current scenario has led to emergence of many such opportunities redefined skillsets and led to wider adaptation of virtual and digital aspects of working therebyevolving to a New Normal'. Businesses and individuals alike have had to adaptrapidly to cope with uncertainty and anxiety in a seemingly unending ordeal. And yet theworld endures. The new initiatives and call to action by our Honourable Prime Minister forAtma Nirbhar Bharat Vocal for Local and Digital India will boost in the speedy revival ofour economy but the success surely lies in the robust implementation and collectiveefforts & commitment of each citizen towards this national call.
The Government had announced a stimulus package of Rs. 20 lakh crores for the revivalof the economy and to support the various business sectors. This timely relief package hasshown some positive results as macro-economic indicators such as manufacturing PMI autosales railway freight etc. have significantly improved in the month of August 2020.However the auto sector is reeling under severe slowdown for the last two years and needsspecific government support to ensure revival. Further in this direction the industry hasmade requests to the Government to consider reduction in the GST rate and an earlyimplementation of the scrappage policy. Moreover the recent Electric Vehicle policyrelated announcements by various states have initiated setting the right momentum towardsaccelerating the adoption rate of EVs in India.
At this juncture it is imperative to quote the Automotive Mission Plan (AMP) 2026which directs the Indian Automobile Industry to be a front runner in the Make In Indiaprogramme as it is amongst the foremost drivers of the country's manufacturing sector.Over the next decade the Indian automotive sector is likely to contribute in excess of12% of the country's GDP and comprise more than 40% of its manufacturing sector. The AMPenvisages that the Indian Automotive Industry will grow 3.5-4 times in value from itscurrent output of around Rs 464000 cr to about Rs. 1616000 Rs. 1888500 cr by 2026thereby constituting almost 50% of the total manufacturing GDP. At JBM Auto Limited witha clear intent towards making your company agile during this time we have taken rapidstrides towards incorporating latest technology to reduce redundancy of tasks &processes and upskilling manpower to enhance productivity. We are moving very swiftlytowards incorporating Artificial Intelligence and Machine Learning across ourmanufacturing facilities that has resulted not only in a smoother resumption of operationspost the lockdown but also ensured in sustaining a safe and healthy working environment.
Your company has ensured strict compliance to all guidelines issued by MHA andrespective State Governments at all our workplaces along with the well-being of ouremployees which is of utmost importance to us. Continuous education combined withself-discipline and adherence to safety measures being the focal points of businesscontinuity when we resumed production. As we look back and reflect on our learnings wesee our vision of being the most admired Mobility Solution Provider unfold into a storythat will set new benchmarks for times to come. Mobility 2.0 the theme of this year'sannual report is a summation of our efforts and resources a result of a team that dreamsto make the difference. I am extremely elated to share that your company has delivered itsfirst ever batch of 30 electric buses to Navi Mumbai Metropolitan Transport (NMMT)Mumbai. JBM ECO-LIFE 100% Electric buses manufactured under the aegis of Make InIndia' were rolled out in a grand event announcing your company's presence in the Westernregion. This electric bus operation will provide estimated savings of around 60 lakhlitres of diesel and 15000 tonnes of CO2 over 10 years of operations.
The OEM division of your company has registered giant strides in FY20. After havingsuccessfully establishment a world-class city bus service in Noida Greater Noida andGurugram JBM CITYLIFE CNG low floor bus service was launched in the National Capital -New Delhi in March 2020. Your company executed an order for 250 CNG low floor AC busesfrom DIMTS Delhi. The coveted Delhi city bus operations was inaugurated by Shri. ArvindKejriwal Hon'ble Chief Minister of Delhi NCT. These are the first ever low floorair-conditioned buses that have been deployed in New Delhi under the cluster scheme. Lastyear your company also forayed into an altogether new application of Tarmac Buses afterhaving secured orders from Indigo and SpiceJet Airlines. JBM SKYLIFE CNG low floor ACbuses have been deployed at the Delhi International Airport by Indigo and SpiceJetairlines. What makes it commendable is the fact that the entire cycle right from theapplication studying to the final product delivery was completed in a record time of 4months. Over the last few years JBM Auto Bus Division has undoubtedly established itselfas a frontrunner in the R&D technology and innovation space. A testimony to it is thedevelopment of the BS VI compliant CITYLIFE bus that was launched in the Auto Expo 2020.In a mega event your company launched 3 state of the art products in the country'sbiggest auto show ECO-LIFE 12 mts. non-AC 100% Electric Bus ECO-LIFE 9 mts. AC 100%Electric bus and CITYLIFE CNG AC BS-VI emission compliant city bus. With a healthy orderbook in hand and a slew of innovative product concepts on the anvil the OEM division ofyour company is gradually establishing itself as an Indian phenomenon with a globalimpact. In the auto component space your company is focussed towards adding value to itscustomers by consistently innovating the product range for not only aligning with but alsosurpassing the expectations of the OEMs. Amongst some significant product portfolioenhancements during the year your company has added capabilities towards Safety CriticalClutch & Brake Pedal Assembly. For the passenger vehicle segment your company hasbeen catering to the widest range of systems and assemblies as a full-service supplier. InFY20 your company's Chennai plant became the supplier of first choice for critical carbody skin panels for PSA. The Chennai plant was also awarded the prestigious GoldCertificate Manufacturing Excellence Awards by Frost & Sullivan. The Pune plant hassuccessfully cleared Volkswagen's sustainability rating which is a MUST requirement foraward of new business from any of the VW Group companies globally. Moreover the Puneplant has inducted new technology for manufacturing of aluminium bumper assembly for JeepFCA. The portfolio in the auto component segment has been expanded by the growthregistered by the Tooling business that registered the highest ever turnover in FY20 as aresult of new business gained by way of adding multiple new customers
I am extremely elated to share that your company has delivered its first ever batch of30 electric buses to Navi Mumbai Metropolitan Transport (NMMT) Mumbai. JBM ECO-LIFE 100%Electric buses manufactured under the aegis of Make In India' were rolled out in agrand event announcing your company's presence in the Western region. This electric busoperation will provide estimated savings of around 60 lakh litres of diesel and 15000tonnes of CO2 over 10 years of operations.
enhancing the product portfolio and high degree of localisation. During last year thetooling division enhanced its skills and capabilities in areas such as robotic simulationthat resulted in initiating export business of dies and robotic solutions. Foreseeing themovements in the electric vehicle space your company's Tooling Division is gearing uptowards developing EV related products and solutions. Last year i.e. in FY19 your companyhad moved a scheme of Amalgamation of JBM MA Automotive Private Limited (associatecompany) and JBM Auto System Private Limited (subsidiary company) with the JBM AutoLimited with the Hon'ble National Company Law Tribunal Mumbai and Hon'ble NationalCompany Law Tribunal Delhi respectively. The Hon'ble National Company Law Tribunal NewDelhi Bench had approved the scheme of amalgamation in June 2019. Further the scheme ofamalgamation had also been approved by the Hon'ble National Company Law Tribunal Mumbaiin October 2019. As the auto industry is reeling under steep downturn this has alsoaffected the revenues and profitability of your company. Your company's revenues declinedby 12.09% at Rs. 1962.14 cr from previous year Rs. 2231.93 cr. Your company further facedloss of production and sales arising due to pandemic spread in the last quarter of FY20which extended to Q1 of FY21. EBIDTA of the company also witnessed a shortfall of 13.61%at Rs. 245.77 cr from previous year Rs. 284.48 cr. The EBIDTA margin in FY20 stood at12.53% from 12.75%. Your company's net profit for the year stood at Rs. 69.19 cr asagainst Rs. 97.54cr in FY19. Your company has declared dividend at a reduced rate of 35%against 45% declared last year to the shareholders.
The next fiscal year will be challenging for the company due to impact of COVID-19.Your company has restarted operating at low capacity after Unlock 1.0 and we areexpecting that demand will improve in coming months as people may move to self-mobility.Meanwhile your company has also taken aggressive cost reduction measures in all areas toreduce overheads operation cost eliminating wastages and converting fixed cost intovariable cost. As a country India has responded to the ongoing scenario with muchsolidarity with our recovery rate now being amongst one of the highest in the world. Itgives me utmost confidence and belief to state that we are well on our way to restoringour lives and business back to normalcy. As we move forward our Never Say Die'spirit will not only be our strength but also a true catalyst in enabling your companyLEAP ahead with renewed vigour and zeal.
To conclude I extend my sincere appreciation to the management and the staff of thecompany for their valued contribution as always. A big thanks to you our valuedstakeholders. Your faith and trust in our capabilities keeps motivating us to transformand grow from strength to strength.
As we transition into the future we see JBM Auto Limited as the torchbearer of abetter tomorrow. With sustainability as the driving engine of your company's growth weare sure to be the most respected brand that will deliver a Cleaner Greener and Safertomorrow. Let's prevail with positivity and grit as a team that is building a bettertomorrow for you and your loved ones.
Stay Healthy Stay Safe.
Thank You and Jai Hind.
Surendra Kumar Arya