Nothing is different and yet everything as we know has changed. Weare living amidst a serious health crisis today. The world is fighting an unseen enemy inthe name novel Coronavirus (Covid-19). The pandemic has been relentless on human lives andis ravaging every economy across the globe. When India got introduced to the virus theGovernment took a prompt action and announced a nationwide lockdown to arrest the spreadof the virus. Social distancing became the need of the hour and economic activities cameto a standstill. Supporting the decision we at Lumax Industries briefly suspended ouroperations choosing to maintain business continuity while working remotely. This crisisbrought along challenges that made us change the course of our actions. Today as theworld fights this foe together it has made us look at things differently.
If you ask us about our strategy to overcome these tough times ouranswer would be Same passion. Renewed perspective.'. While our vision remainsthe same our plan of action has changed. The goal is the same but our approach route isdifferent. Our passion and purpose are the same but we are navigating our way into thefuture with a renewed perspective. We are hopeful that the world will find a way out ofthis global health crisis and soon economic activities will start resuming in a staggeredmanner.
The FY2019-20 was the most challenging year for the Indian automotiveindustry as it witnessed the worst-ever downturn in the last two decades. Even amidst suchchallenges our financial performance and margin profile speak the story of our success.
The auto industry was already reeling under a slowdown from 3rd quarter2018 recording the slowest demand in almost 2 decades. Various factors like strictlending rules due to NBFC credit squeeze central elections and negative rural sentimentled to dampened demand. However the BSIV to BSVI transition brought with it hope forrevival but the outbreak of Coronavirus derailed all projections. The subsequent lockdownimpacted the economy adversely and further dented the already bleeding auto industry.
The dynamics of the automotive industry are changing. We are beingreceptive and equipping ourselves to adopt a multi-pronged approach that meets theever-evolving demand for new and better products.
The FY 2019-20 was characterised by a difficult demand environment andweaker-than-anticipated financial performance.
During the FY 2019-20 the Company succeeded in overcoming anon-conducive social and industrial environment. I would credit this success to theCompany's degree of receptiveness and adaptability.
We did not resist the change and persistently kept moving ahead in anefficient and effective manner. Lumax Industries has always been proactive in the adoptionof new technologies. This approach helped us deliver quality and technologically advancedlighting products to our custome Rs. Our focus on developing new products remainedconsistent reaffirming our industry leadership.
During the year our portfolio flourished with new customers which weare optimistic will add to our business. Strong support from our partners and longstanding relations with our customers have strengthened our presence across marketsenabling us to steer through these difficult times. As a dominant player in the lightingbusiness we benefitted from the slew of new model launches by OEMs and entry of new OEMsin the country.