The year 2018-19 was strewn with sentiments of growth in the first half and challengesin the second half. Keeping on course with our vision we continued channelising ourefforts to deliver superior performance. Our investments - technological collaborationsand team expertise gathered over years echo with our vision and mission. These helpus prepare better for tomorrow. Last fiscal we registered a record performance in all keyfinancial metrics. We further strengthened our portfolio by adding new synergistic productlines. Our vision is to transition and offer future ready mobility solutions. Variousfactors like increase in cost of ownership and liquidity squeeze led to the slowdown ofautomotive industry during the second half of last fiscal. However the Company iscautiously optimistic to regain growth momentum. We anticipate reaping benefits fromconsolidation and inorganic investment and move to next stage. In a nutshell the Companywill constantly move towards a new growth trajectory.
During 2018-19 we reported
1. Revenues of Rs 5908 Cr an increase of 32% over 2017-18
2. EBITDA of Rs 725 Cr an increase of 36% over 2017-18
3. PAT of Rs 286 Cr an increase of 12% over 2017-18
4. EBITDA margins of 12.3% expansion of 33 bps over 2017-18 The year 2018 broughtalong its share of challenges and the fluctuating business cycles. However on thebrighter side the Indian automobile industry registered a production growth of 6.26% in2018-19 with 30915420 vehicles as compared to 29094447 in 2017-18 (Source:
SIAM). Further the recent introduction of the BS VI norms for electric vehicles madeit compulsory for all auto manufacturers to supply cleaner safer and sustainablevehicles. Together these factors along with a mix of other reasons like high interestrates with tight liquidity conditions by NBFCs increased insurance premiums volatilityin exchange rate and oil prices and uncertainty caused by General elections alsocontributed to a tepid growth.
"We are preparing to cement our position further by entering into new productcategories with increased focus on R&D expecting a revolution in auto world."
New collaboratioNs Newer possibilities.
This year witnessed new collaboration between us and
KPIT Engineering Limited with regards to telematics business. This business deals withtelematics hardware product consisting VTS-AIS 140 on bus integrated telematic systemcompliant to UBS-II specification and telematic products for school buses. As a strategicpriority our Board has approved merger of Harita Seating Sytems Limited (HSSL). This isthe largest of its kind transaction that UNO MINDA has ever undertaken. HSSL is aquality-focused system-driven organisation that is engaged in manufacturing productdevelopment and sales of driver seats and bus passenger seats. We are hopeful of takingthe business to the consequent level while creating value for shareholders of both thecompanies. Some of the prominent customers of
HSSL include TVS Motor Company Royal Enfield TAFE
Daimler John Deere and Tata Motors amongst others.
It gives us great pleasure to inform you that our JV Roki
Minda has successfully qualified in the QAV 1 and 2 audit.
This audit is conducted for the development of BS-VI model air cleaner assembly. Simplyput it means that our products are not just BS VI ready but future ready.
Moving on to some other update in terms of BS-VI norms: our filter and canisterbusiness are the only ones in our portfolio to have impacted majorly due to BS-VI emissionnorms. It gives us great pleasure to inform you that our JV
Roki Minda has successfully qualified in the QAV 1 and 2 audit. This audit is primarilyconducted for the development of BS-VI model air cleaner assembly for HMSI. Simply put itmeans that our filters are BS-VI compliant.
It is a matter of immense pride for us to inform you that our new R&D center hasbeen established which has dedicated team of more than 150 engineers. This is an importantmilestone in our journey towards becoming completely self-reliant on the technology front.This will enable us to develop new technologies and products which in turn will help usseize newer opportunities.
Our new facilities of Alloy Wheels (2W) controllers & sensors under expansion areon track. The civil work for these have started already and are scheduled for commercialproduction in April 2020. The high-temperature sensor line (HTS) is under its installationprocess. It is expected to commission by the end of this calendar year and we areexpecting mass production in Q4 of this fiscal FY2020.
We have already received orders for BS VI sensors from leading OEMs. On the other handwork on cam and crank sensors is also progressing and orders for product and machinery areas per schedule.
In controller division the plant construction is going on at full swing with itscommissioning expected in Q2 of FY2020.
During the year the Company was recognised and conferred with some major awards andaccolades. Some of the prominent ones include:
1. The Most Promising Company of this Year' award by CNBC TV18 at the IndianBusiness Leader Awards.
2. The National Intellectual Property Award for the year 2019 in the category of TopIndian Company Organization for Designs.
3. Comprehensive Excellence Award from MSIL.
4. Quality Award from TKML for the lighting division
5. Quality Excellence Award to MTG and Roki Minda by MSIL.
6. EY Entrepreneur of this year' in Manufacturing category.
7. IR-Magazine award for excellence in Investor Relations.
With a motive of simplifying the Group structure the board approved the merger of fourof its wholly-owned subsidiaries Minda Distribution and Services Limited MindaAuto Components Limited M J Casting Limited and Minda Rinder Private Limited. This schemewill be subjected to necessary regulatory approvals. We expect the exercise to becompleted in FY2020.
Consolidating With A Purpose
With a motive of simplifying the Group structure the Board approved the merger of fourof its wholly-owned subsidiaries Minda Distribution and Services Limited MindaAuto Companies Limited M J Casting Limited and Minda Rinder Private Limited. This schemewill be subject to necessary regulatory approvals. We expect the exercise to be completedin FY2020. The said merger is expected to bring a lot of operational and strategicsynergies and create value for all our stakeholders.
I take this opportunity to thank our Board Senior Management team and our staff acrossthe organisation for their contribution. Together we make a thriving and sustainableenterprise. Thanks for your continuous support and trust in us.
Nirmal K Minda
Chairman & Managing Director