In 2017 the world economy grew at 3.8% the fastest since 2011 after a period of 6years of lacklustre growth. At domestic front the rollout of uniform Goods and ServicesTax (GST) created some disruption and India's growth moderated to 6.6% in FY18. Howeverthe automotive industry witnessed growth across all vehicle segments. The consolidatedrevenue increased to Rs 1349 crores a 17% y-o-y jump. The EBITDA grew by 35% to Rs135 crores. The revenue growth was supported primarily by robust growth in India acrossproduct segments. The order book of die casting businesses in India and US are still nothealthy. The management is focusing on new business development which hopefully willimprove the capacity utilization of die casting business in the coming years.
Operationally maintained healthy capacity utilization as plants sustained higherproduction to meet increased demand for Steering products. We focused on lean and costoptimisation measures to boost productivity and reduce manpower and other costs. YourCompany was able to optimize the capex in FY18 with continuous evaluation of in-house vsoutsourcing decision. Our R&D facilities were upgraded to meet the new productrequirements of customers. Another initiative was the implementation of PLM (ProductLifecycle Management) to enhance the potency of all the new product developments. IMFestimates that Indian GDP growth would rebound to 7.4% in FY19. Combine this with soliddemand cogs like higher disposable income levels favourable demographics easy fi nanceoptions availability; top it with government initiatives like Make in India' NATRiP(National Automotive Testing and R&D Infrastructure Project) AMP 2026 (AutomotiveMission Plan 2016-26) we have favourable growth opportunity awaiting us and we are confident that RML would be marching ahead towards its vision of the decade of profi tablegrowth.
On behalf of the entire Board of Rane (Madras) Limited I thank all our stakeholders Customers Employees Partners Vendors Investors Bankers GovernmentCommunities and most importantly you our shareholders who have entrusted immensetrust in us throughout this eventful journey.
|Yours Sincerely |
|L Ganesh |