Cardinal truth of business:
Do something each day that inches you closer to your goal for tomorrow.
Reinvention. Innovation. Diversification. Collaboration.
With today's rapidly-changing landscape in the global/ Indianautomotive market it is both fascinating and exciting to see what it demands of abusiness. The need of the hour is constant reinvention and innovation supported by timelydiversification and right collaboration.
Under such thrilling scenario we at Lumax Auto Technologies Limitedare moving ahead with our focus on tomorrow's need while preparing for it today. Forus this pace of change and the need for diversified products is like a boost to ourforward momentum. For more diversification is sure to bring along even more excitingopportunities.
The automotive world
The automotive sales in India during the year 2018-19 increased by5.15% to reach 26267783 units. The industry continued demonstrating its growthmomentum. This was especially true in the commercial vehicle and 2-wheeler segment thatposted a healthy growth in numbers. The passenger vehicle sales on the other hand showedsome slack during the year leading to a high inventory level. But despite all theheadwinds like rising fuel prices new insurance norms subnormal monsoon liquiditytightening due to NBFC and rising inventory the industry tackled and surpassed theseswiftly.
Robust financial performance
It gives us great pleasure to share that our performance for FY 2018-19was positive and delightful. Despite the industry's prevailing conditions yourcompany had a fruitful year. There was a strong and positive growth experienced in revenuewhere it jumped 22% YoY to र 1358 cr. This can be mainly accredited to a sturdygrowth in the Lighting Sheet metal and aftermarket business. Besidesa rich product mixand operating leverage benefits helped the Company's EBITDA to grow by 25% to र145 cr and PAT by 35% to र 66 cr. We believe accelerating 2W/3W volume of leadingmanufacturers diverse basket of products offering for the OEMs and pick up in aftermarketsales will continue fostering profitability for the Company.
The Company announced its joint venture with JOPP Germany tomanufacture and supply transmission products to the Indian automotive industry. While JOPPwill bring the world class technology for its products to the joint venture the Companywill provide its 7 decades' rich experience towards management of the JV in India.Focus of JV is towards self-reliance in technology & establishment of astate-of-the-art R&D centre in India along with manufacturing operations. The JV willengage in design development and production of Gear Shift Towers Automated ManualTransmission (AMT) Kits Control Housings and All Gear Sensor (AGS).
Made to perform
Our rebranding exercise and change in marketing strategy supported byGST implementation bore the sweet fruit and we did extremely well in the aftermarket withenhanced brand visibility. The consolidated numbers from aftermarket business echo thesesentiments. Today we have successfully expanded our reach to 15000+ touch points with220+ SKUs.
The year 2018-19 saw the inauguration of our R&D centre insubsidiary company Lumax Cornaglia Auto Technologies Pvt. Ltd. at a new location inChakan Pune. This was a step into the future. With the onset of BS-VI norms weanticipate huge surge for products such as Air intake systems Urea tanks Fuel tanks andCAC ducts among others. We along with our partners are dedicated towards capturingthese market opportunities. We intend meeting the consequential requirements of the OEMsby staying ahead of the curve.
Our forward momentum approach has well prepared us to readily respondto the BS VI challenge. Our BS VI product line has been launched successfully. Parallellywe are also in the process of developing new products while constantly evaluating neweropportunities. Our team is steadily assessing fresh product lines in sync with the futureregulations and upcoming trends in electrification and light weighting of vehicles.
Dynamics of change
Over the years we have worked hard and maintained our position as oneof the prominent industry leaders. Today we are the preferred supplier for all majorOEM's. Our diverse basket of product offerings for the OEMs promise us the confidenceof a healthy performance in the coming quarters embracing the headwinds. During the yearwe received LOI from some of the top OEMs for urea tank business and oxygen sensors. Weanticipate both the productions to commence from Q4 FY2019-20. We have also begun trialphase for implementation of track and trace devices for future models.
The future of the Indian automotive market looks bright and full ofopportunities. We are positive about these developments and remain strong backed by thefollowing:
1. High revenue traction in the lighting business
2. Gear shifter will ride on strong PV growth
3. Increasing penetration of AT/AMT
4. New orders for chassis and swing arm to boost metallic business
5. Revenue and margin expansion in aftermarket business
6. Incremental revenue from Urea tanks and Oxygen sensor
Forward momentum is about doing the best now. It is about sowing todayfor reaping tomorrow. Lumax Auto Technologies Ltd. continues being the Group's growthengine. We expect maintaining this organic growth with our diverse product basket while isalso exploring inorganic growth avenues. They say to move ahead one must identify thecorrect way forward. With this aspiration in mind we are constantly increasing ourproduct portfolio sharpening our skill sets and elevating our association with our JVpartner and clients. We are consciously investing in product technologies that are likelyto command a strong demand in the future. Together all these will help the Company get anearly mover advantage while enhancing its leadership position. We extend our sincerestgratitude for the undying support of our team employees stakeholders and our JVpartners. Each one has strengthened our progress achieved so far. Individually we are amere drop. But together an ocean. Here is hoping for a brighter future together.
|Dhanesh Kumar Jain ||Anmol Jain ||Deepak Jain |
|Executive Chairman ||Managing Director ||Director |