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JTEKT India Ltd.

BSE: 520057 Sector: Auto
NSE: JTEKTINDIA ISIN Code: INE643A01035
BSE 00:00 | 25 Nov 142.90 3.55
(2.55%)
OPEN

139.00

HIGH

147.00

LOW

139.00

NSE 00:00 | 25 Nov 142.60 3.15
(2.26%)
OPEN

139.85

HIGH

147.35

LOW

139.00

OPEN 139.00
PREVIOUS CLOSE 139.35
VOLUME 44567
52-Week high 147.00
52-Week low 66.15
P/E 47.32
Mkt Cap.(Rs cr) 3,494
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 139.00
CLOSE 139.35
VOLUME 44567
52-Week high 147.00
52-Week low 66.15
P/E 47.32
Mkt Cap.(Rs cr) 3,494
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

JTEKT India Ltd. (JTEKTINDIA) - Chairman Speech

Company chairman speech

Dear Shareholders

The world has rarely been in a position where future readiness isnecessary! And the situation right now is that. The continuous Covid-19 flare-ups andseveral subsequent subverting developments have adversely affected the world's economy.Moscow's invasion of Ukraine has made the inflation graph soar during this crisis timewhen the entire world is already besieged by the effect of the Covid-19 pandemic and isstruggling to come back to normal.

The uncertainty is looming large in the market with supply chainbottlenecks. Inflation is at an all-time high and the global economy continues to feel thetremors due to developments like Omnicron and new Covid-19 variants. The head of the IMFKristalina Georgieva recently warned that the outlook for the global economy has"darkened significantly" in recent months and the world faces an increasing riskof recession in the next 12 months. The commodity price shock from the war in Ukraine hadexacerbated the cost-of-living crisis for hundreds of millions of people.

In the last two years the COVID-19 pandemic followed by lockdownsdisrupted businesses and the demand for products dwindled. Globally there weredisruptions in Chinese parts exports large-scale manufacturing interruptions acrossEurope and the closure of assembly plants in the United States.

Back home the total automobile dispatches during the last financialyear fell 6% in all segments dragged down by lower sales of two-wheelers and entry- levelcars amid rising vehicle and fuel costs according to the Society of Indian AutomobileManufacturers (SIAM).

The overall PV segment registered a growth of 13.2% for FY21-22 ascompared to the same period last year. The sale of the domestic PV segment for thefinancial year was at 3.1 million units as compared to 2.7 million units in FY20- 21.Within the PV category the sales of passenger cars declined by (-) 4.9%. The bright spotin the category was utility vehicles. The demand for Utility vehicles continued as itposted a robust growth of 40.4% to close the year at 1.5 million units. Importantly thedemand for this segment continued to be strong and it now accounts for 49% of the total pVmarket an increase of 10% when compared to FY20-21.

Also the CV segment witnessed a sharp increase of 26.0% as it achievedsales numbers for the fiscal at 0.71 million units as compared to 0.57 million units forFY20-21. Within this segment Medium & Heavy Commercial Vehicles (M&HCVs) andLight Commercial Vehicles increased by 49.7% and 16.7% respectively for the fiscal overthe same period last year.

2W and 3W which account for 78% of the total units sold in thecountry saw de-growth of (-)10.5% for FY21-22 as compared to the same period last year.Within the 3W category Passenger Carrier increased by 25.6% whereas Goods Carrierdeclined by (-) 7.9% for the fiscal. Within the 2w segment Scooters Motorcycles andMopeds declined by (-) 10.6% (-)10.3% and (-)23.3% respectively for FY21-22 as comparedto the same period last year.

The recent government initiative of easing inflationary pressure byreducing central excise duty on petrol and diesel and change in the duty structure tomoderate the price of steel and plastic has given much-needed relief to the Auto segment.

At JTEKT we have been mindful of following the safety protocols andhave embraced the ways of working in the new normal. We follow all SOPs in our factoriesand offices and continue to ensure the safety of our employees.

Throughout we have been guided by our group's vision - "Shaping abetter future through the spirit of No1 and Only One". Our exhibit of strength andcommitment towards our vision has helped us post a profit at a time when the industryfaced several adverse pressures. Our return on Capital Employed has improved and duringthe year under review our subsidiary's revenue increased by 19% to reach ' 994 million.We worked on improving our capacity utilization to reduce the negative impact onprofitability at JFm which also achieved a 100% OTIF (On Time in Full) delivery trackrecord.

During the fiscal our excellence in production got acknowledged and wereceived acclamation from Toyota Kirloskar Supplier Association wherein JTEKT India wasconferred 2nd Position in Quality Circle Competition. Our Company also received aCertificate of Appreciation from Maruti Suzuki for Vendor System Audit Rating andaccolades from FCA for the 'New Product Development' and 'Best Supplier' Awards.

The fiscal made us focus on enhancing our technological skills inproduct designing and testing under which we upgraded the number of testing facilities toachieve further reduction of set up time and achieve better work efficiency. We are alsoin the process of improving our testing capability for drive shafts a new product addedin the JIN portfolio.

During the year we have worked on improving cost-effectiveness andfocussed on self-reliance and providing good service to our patrons.

Like always this year too we have put focus on training and skillenhancement of our employees wherein we have introduced new programmes including JIM(Japan India Institute for Manufacturing) training school at one of our plants located inDharuhera. The purpose of this training program is to hire fresh diploma holder studentsdirectly from the colleges and to train them for 01 year and grow them as a future shopfloor leaders. Under this scheme we have hired 21 students (first batch) from thegovernment colleges who have been enthusiastic in learning the shop floor skills. Forthese efforts we have received Certification of Accreditation at Ministry of Economy(Japan government)

Safety has been our focus and we have made Covid-19 vaccines availablefor all our employees and also mandated 'Covid appropriate behaviour' training from top tobottom. SoPs like proper sanitization of facilities and offices sanitizers masks andsocial distancing are being religiously adhered to.

Due to the remote mode of working becoming the new normal we have alsoemphasized cyber security wherein a data classification tool has been introduced to ensureconfidentiality of the Company's proprietary information.

During the year project JISCO ( JTEKT India Supplier Connect) was alsoundertaken by the Company to digitize the supply chain process of the company and it hasbeen successfully implemented in DHR-1 plant.

Currently we at JTEKT have six manufacturing locations equipped withsolar power generating facilities with a generating capacity of 3201 KWp. We also plan tofurther increase the capacity in the coming years. Moreover we are being cautious aboutour energy consumption and are relentlessly adopting energy-saving measures like efficientfixtures and equipment zero water discharge through water recycling and much more.

Through relentless effort JTEKT has been creating new benchmarks andthis would have not been possible without your support. I express my gratitude to ourbankers State Bank of India Standard Chartered Bank IDFC IndusInd Bank SumitomoMitsui Banking Corporation MUFG Bank Limited and Mizuho Bank Limited for standing with usin thick and thin.

My special thanks to all our employees and their families who proved tobe the stronghold of the JTEKT family and sailed through the testing time with muchpatience and braveness.

In the end I would also like to thank our shareholders who never losttrust in us and gave relentless support to our endeavours.

Thank you

Yours sincerely

Hitoshi Mogi

Chairman and Managing Director

.