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Lumax Auto Technologies Ltd.

BSE: 532796 Sector: Auto
NSE: LUMAXTECH ISIN Code: INE872H01027
BSE 10:48 | 03 Oct 275.45 -5.10
(-1.82%)
OPEN

280.50

HIGH

283.15

LOW

273.80

NSE 10:34 | 03 Oct 275.70 -4.80
(-1.71%)
OPEN

278.10

HIGH

283.25

LOW

275.60

OPEN 280.50
PREVIOUS CLOSE 280.55
VOLUME 129780
52-Week high 312.00
52-Week low 128.10
P/E 25.13
Mkt Cap.(Rs cr) 1,877
Buy Price 275.00
Buy Qty 1.00
Sell Price 275.55
Sell Qty 328.00
OPEN 280.50
CLOSE 280.55
VOLUME 129780
52-Week high 312.00
52-Week low 128.10
P/E 25.13
Mkt Cap.(Rs cr) 1,877
Buy Price 275.00
Buy Qty 1.00
Sell Price 275.55
Sell Qty 328.00

Lumax Auto Technologies Ltd. (LUMAXTECH) - Chairman Speech

Company chairman speech

Dear Shareholders

At LATL we have always believed that a good way to assess an organization’sstrength is to see how it performs in an unprecedented difficult situation. The Companyachieved a landmark highest ever revenue and profits despite the challenging environment.Business activities started getting back to normalcy post the second wave. However theglobal semi-conductor supply constraint continued to be a challenge resulting in supplychain disruption impacting production across the industry amongst all OEMs.

I ND USTRIAL LANDSCAPE

When it comes to the Automotive industry the technology landscape is fast-changingrequiring the evolution and adoption of information and communication-related technologiesat an extremely rapid speed. The transition to electric mobility energy efficiencylight-weighting of vehicles and alternate fuel usage are some of the outcomes of theemerging trends. This calls for technological upgradations across the sector to keep upwith evolving demands and dynamic market needs. Our teams and technology partners help usdesign innovative solutions to offer localized customer solutions for the Indian market.And so we believe our future partners must be experts in their respective field oftechnology with a history of innovation and product leadership. This is important toenable us to offer advanced products and solutions.

FINANCIAL PERFORMANCE

The Company continues to sustain its market leadership basis healthy segmentaldiversity diversified product portfolio and established relationships with its clientele.The Company achieved the highest ever revenue and profit in FY 2021-22 benefiting fromhealthy growth in the after market business and change in product mix the operatingmargin looks promising over the medium term. We will continue to maintain a balancedfinancial risk profile and liquidity to remain healthy backed by a lean balance sheetover the years and prudent funding of capex and working capital requirements.

The Company is well-positioned to capture the growing market opportunities with thehelp of a diverse basket of products and capabilities to serve Indian OEMs better. Weconstantly thrive on building possibilities and achieving operational excellence.

OPERATIONAL HIGHLIGHTS

We appreciate and thank the Government for introducing the Production Linked Incentive(PLI) scheme for the auto and auto component players. The massive pace of technologicalprogress in the Auto industry today with greater impetus on localization through the PLIScheme provides us incredible opportunities and visibility to move ahead in this journey.We have been engaging in consistent innovation across our product line with our diverse JVpartners. We are happy to announce that Lumax Auto Technologies has received approval fromthe Government of India for the PLI scheme in collaboration with its various joint venturepartners.

The JV announced in the year with Alps Alpine Japan will set the tone to focus onmanufacturing electric devices and components. This strengthens our position in theindustry with the diversification of our product portfolio.

RESPONSE TO COVID 19

We have witnessed several industries and geographies coming to a standstill duringthese testing times. However at LATL we approached the pandemic hands-on andsuccessfully mitigated the impacts of Covid-19 throughout the organization. Regularsanitization at the workplace Covid-19 awareness programs coupled with mental healthdrives enabled us to mitigate the pandemic-incurred risks. We feel our constant endeavourin fighting the pandemic and supporting our stakeholders has bolstered our value creationprocess.

We truly believe that our workforce is our biggest asset. Therefore we prioritized ourpeople’s health and safety during the discourse of the pandemic. We establishedquarantine centers at various plant locations fully equipped with oxygen concentratorsambulance services and basic medical support facility including a 24 x 7 doctor. We alsobegan a workforce vaccination drive in April 2021 at our facilities. As on date a totalof 17 camps were organized and close to 3000+ employees have been vaccinated to date.

FUTURE STRATEGIES

At Lumax we are poised to capture the growing market opportunities through asystematic and customer-first approach. The addition of our new subsidiary is in alignmentwith our vision to establish reliance on technology along with the support of our businesspartners. We shall continue to put in the best possible efforts to hold our long-standingreputation for leadership trust and integrity. Further we plan to add value for ourclients through consistent innovation and improvement.

OUTLOOK

Increasing ofitake from automobile Original Equipment Manufacturers (OEMs) on the backof an improving demand scenario including pent-up demand strong after market demand andincreased wallet share with its major customers will be the growth catalyst for us. Theincreasing demand for safety emission comfort requirements in automobiles is paving theway ahead for companies focused on supplying import-substitute products to the Indianmarkets.

These partnerships with global leaders are strengthening our core businesses andenhancing our diversified product offerings by leveraging global technologies. LATL isprepared for the coming times basis a well-positioned market standing and capabilitiestoday. We have the best combination of new products and an expanding wallet share with thecurrent product line. All these endeavors are aimed to serve our customers and theirexpectations diligently while also pursuing our purpose of a multifold growth in terms ofthe revenue trajectory.

VOTE OF THANKS

We have good momentum coming into FY 2022-23 and are confident that we will continue toexecute in line with our strategy. We also remain cognizant of the potential impact thatfurther Covid-19 related geopolitical tensions among other uncertainties and disruptionscan have on us and the overall industry.

We take this opportunity to extend our gratitude to all our colleagues. We thank themfor the incredible dedication and care they have shown to our customers and each otherover the past year. Their tremendous efforts have above everything else made us what weare today and will continue shaping our tomorrow.

Warm Regards

DK Jain Anmol Jain Deepak Jain

.