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Rico Auto Industries Ltd.

BSE: 520008 Sector: Auto
NSE: RICOAUTO ISIN Code: INE209B01025
BSE 14:30 | 20 May 62.20 3.05
(5.16%)
OPEN

60.15

HIGH

62.40

LOW

60.10

NSE 14:24 | 20 May 62.20 3.50
(5.96%)
OPEN

60.60

HIGH

62.40

LOW

60.10

OPEN 60.15
PREVIOUS CLOSE 59.15
VOLUME 8346
52-Week high 87.25
52-Week low 55.95
P/E 12.99
Mkt Cap.(Rs cr) 842
Buy Price 62.00
Buy Qty 25.00
Sell Price 62.20
Sell Qty 322.00
OPEN 60.15
CLOSE 59.15
VOLUME 8346
52-Week high 87.25
52-Week low 55.95
P/E 12.99
Mkt Cap.(Rs cr) 842
Buy Price 62.00
Buy Qty 25.00
Sell Price 62.20
Sell Qty 322.00

Rico Auto Industries Ltd. (RICOAUTO) - Chairman Speech

Company chairman speech

Dear Shareholders

It gives me great pleasure to share with you the financial results of 2016-17. The yearhas been one of consolidation and growth fuelled by the macro economic headwinds. TheIndian Economy continued on its growth trajectory recording a growth of 7.1% in FY2017.During the same period the production of vehicles in the Indian Automobile Sector grew by5.4% on an average. This growth was led by the passenger vehicles segment that recorded agrowth of 9.2% followed by two wheeler sales that stood at a growth percentage of 6.9while commercial vehicles grew at 4.2% and three wheeler sales recorded a negative growthof 4.9%.

Your Company continued to deliver innovative products to our customers and driveperformance. I am happy to report that the consolidated sales gures for Rico Auto Groupstood at Rs.1092.2 crores an increase of 7%. This in turn resulted in a 17.1% growth inEBIDTA from Rs.108.2 crores in the previous scal to Rs.126.6 crores in the scal underconsideration. Profit after tax recorded an increase of 63.6% from Rs.29.7 crores in2015-16 to Rs.48.6 crores in 2016-17. The Consolidated EPS also grew by 64% to Rs.3.6 pershare while the net worth stood at Rs.518.6 crores.

Going forward the Indian economy is expected to grow in the range of 6.8% 7.5% inFY2018 while a major structural change is expected on account of the GST regulation. Thedomestic automotive industry is expected to witness robust growth fuelled by the CentralGovernment's impetus to increase investment in road infrastructure and in the upliftmentof rural areas. Overall a stable government framework increased purchasing power largedomestic market and an ever-increasing development in infrastructure are all positivegrowth indicators. As a result of all of these factors the Indian Auto Component industryis expected to register a growth of 8-10% in FY 2017-18.

Your Company is taking a whole lot of measures to leverage this positive climate asalso to expand its footprint. Towards this aim we have recently entered the Aftermarketspace and also identified the Defence Sector as a key focus area. We expect theConsolidated EBITDA margins to grow to 18% as against 11.6% in FY17 over a period of 4-5years as we work towards enhancing productivity & improving the product mix. We arealso moving towards automation by deploying Robots which in turn will augmentproductivity. Your Company's current order book is significant which is likely to beexecuted over the next two years. Additionally it has made bids for orders worth aroundRs.500 crores across OEMs. It is also foraying into newer products thereby addressing theEmission Norms mandate and the Electric Vehicle segment.

Driven by the cornerstones of innovation and perseverance over the years your Companyis a world-class organization today. The numbers reported during the year under review area testament to our competitive advantage and long-term sustainability.

I would like to take this opportunity to express our gratitude to all our stakeholdersto our customers for their continued trust in us to our collaborators for helping ussupport our customers to our employees and teams who work with unmatched passion andfocus. Last but not the least to you our shareholders for your unwavering belief in us.We would also like to thank all local state and national governments the concernedbodies and the banks and financial institutions in all countries in which we operate fortheir strong support.

Arvind Kapur

Chairman CEO & Managing Director