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Sharda Motor Industries Ltd.

BSE: 535602 Sector: Auto
NSE: SHARDAMOTR ISIN Code: INE597I01028
BSE 00:00 | 17 Jun 431.30 33.75
(8.49%)
OPEN

403.50

HIGH

455.40

LOW

382.00

NSE 00:00 | 17 Jun 430.70 32.95
(8.28%)
OPEN

401.95

HIGH

455.90

LOW

395.10

OPEN 403.50
PREVIOUS CLOSE 397.55
VOLUME 38117
52-Week high 505.00
52-Week low 126.40
P/E 23.53
Mkt Cap.(Rs cr) 1,283
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 403.50
CLOSE 397.55
VOLUME 38117
52-Week high 505.00
52-Week low 126.40
P/E 23.53
Mkt Cap.(Rs cr) 1,283
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Sharda Motor Industries Ltd. (SHARDAMOTR) - Chairman Speech

Company chairman speech

Dear Valued Stakeholders

It is my privilege to write to you and present the Annual Report for2019- 20 as Managing Director of Sharda Motor Industries Limited. I hope this letter findsyou safe and in good health.

As you know the Automobile Industry has grappled with several issuesduring the year. On one hand mounting trade tensions muted global growth and enhancedregulatory norms have fundamentally changed the contours of the business environment inwhich we operate. Next came the onset of the COVID-19 pandemic in the final quarter of theyear which has ushered in a new reality for industries across the world. The Indian autoindustry faced an unprecedented year marked by significant headwinds. The annualproduction of vehicles including passenger vehicles commercial vehicles three wheelerstwo wheelers and quadricycle has registered degrowth of (-)14.73%* over the same periodlast year. Also the Domestic auto sales declined by 18%* Y-o-Y in FY20 the lowest sincethe data series was introduced in 2001.

Alongsidea broad economic slowdown regulatory changes- including themigration to BS-VI emission standards-fuelled uncertainty for both consumers andsuppliers. These challenges were further exacerbated in the final quarter of the year bythe country's strict lockdown measures in response to the pandemic.The impact ofCOVID-19 resulted in losses to the company during the period which is expected to continuefor the next few quarters. Against this volatile macro backdrop your Company is chartingout a disciplined path towards a robust and resilient future.

The principal take-home from our Company's performance during theyear under review is that of inclusion and agility.

I would emphasise the word ‘inclusion' as the last quarter of thefinancial year under review was affected by a global pandemic. During this period theCompany demonstrated the ability to enhance value for all stakeholders in exceptionallychallenged circumstances. I would concurrently emphasise the word ‘agility' aswe refused to be overwhelmed by the unfolding crisis. On the contrary we responded with aspirit to further improve connection among our team members customers and communities.

But it was in the final days of the year that the true nature of itspurpose-driven world view truly shown through. The Company has prioritized the health andsafety of its employees therefore company has put in place a robust protocol for ensuringworkplace safety including sanitization and social distancing norms and shall continue tostrengthen it further based on the Government of India recommendations. Also when weemerge out of this crisis the world will be a very different place as are witnessing manyof those changes already.

Looking ahead-

As we look ahead over the next two years we anticipate a tremendousdeal of transformation stemming from COVID-19.

Consumer behavior will change in numerous ways from demanding moreintegrated digital experiences to prioritising health and safety features acrosspurchasing decisions. The move to ‘slow' travel and personal(versus publicand/or shared) transport may shape future demand for passenger vehicles. Greater scrutinywill be placed on building environmental sustainability and climate resilience into thevery core of business models. The Company being the auto ancillary is well placed to meetthe demand opportunities that will arise from these important and fundamental shifts.

Finally on behalf of all the directors and management of the CompanyI would like to take this opportunity to thank our dedicated and motivated employees whoare the greatest asset of the Company and who have with their passion hard work andcommitment taken it to this level. I would also thank all our customers suppliersGovernment Agencies Bankers Employees and other stakeholders for reposing theirconfidence and faith in the Company.

Best Regards

Ajay Relan

Managing Director