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Shivam Autotech Ltd.

BSE: 532776 Sector: Auto
NSE: SHIVAMAUTO ISIN Code: INE637H01024
BSE 00:00 | 12 Aug 44.65 -2.30
(-4.90%)
OPEN

44.65

HIGH

44.65

LOW

44.65

NSE 00:00 | 12 Aug 44.75
(%)
OPEN

44.75

HIGH

44.75

LOW

44.75

OPEN 44.65
PREVIOUS CLOSE 46.95
VOLUME 9898
52-Week high 50.00
52-Week low 19.55
P/E
Mkt Cap.(Rs cr) 546
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 44.65
CLOSE 46.95
VOLUME 9898
52-Week high 50.00
52-Week low 19.55
P/E
Mkt Cap.(Rs cr) 546
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shivam Autotech Ltd. (SHIVAMAUTO) - Chairman Speech

Company chairman speech

Dear Stakeholders

I hope that each one of you and your family members are safe and healthy and areheeding the advisories of the respective governments and taking all necessary precautions.

The year 2020-21 was like no other. It has been amongst the most challenging to-datewith the COVID-19 pandemic causing a scale of su_ering that is hard to comprehend. At thisdifficult moment our thoughts and prayers extend to all those who have been impacted bythis pandemic. Our main focus during this pandemic year was to ensure the safety andwell-being of everyone in the ecosystem. As things stand today we continue to keep healthand safety as our top priority. We have always been people centric and know that ourpeople are our family. We are also of the firm belief that our relationships are the keyto our success.

I am confident however that with the learnings of the previous wave the massvaccination effort and with greater awareness for preventive actions in the society wewill once again overcome this challenging time.

POWER ESILIENCE BY R

FY 2020-21 was one of the toughest years for the Automobile Industry. The lockdowncaused a cascading effect on the revenue and supply chain processes. While the first halfof the year was severely impacted the second half witnessed a revival in sales owing tothe regained consumer confidence and pent-up demand. With an EBITDA of Rs 26.1 Cr (EBITDAmargin 19.7%) Rs 31.8 Cr (EBITDA margin 20.6%) and Rs 30.5 Cr (EBITDA margin 18.9%) inQ2FY21 Q3FY21 and Q4FY21 respectively Shivam Autotech has delivered astounding resultsto showcase an industry turnaround and signals positive change for all its shareholders.The growth reflected is an outcome of Shivam Autotech’s strategic businessinitiatives including new business contracts and investments an indication of theorganization’s grit and result-oriented resolve despite the challenges of the lasttwo years. From facing uncertainties like recession in the auto industry on account ofBS-VI adoption followed by the pandemic lockdown increase in steel prices supply chaindisruption and the overall impact of COVID-19 on the economy this turnaround is anencouraging signal for all and I am positive that we will continue with this growthmomentum and sustain it in future while we create value for all our stakeholders.

The business diversification strategy devised and implemented to manufacture componentsfor new business verticals like o_ road vehicles steering components and constructionequipment have been encouraging. In alignment to PM Modi’s vision of AtmanirbharBharat Shivam Autotech has taken multiple initiatives to build a self-reliantinfrastructure. To increase the liquidity in the system the Company has also availedEmergency Credit Line Guarantee Scheme (Scheme) issued by the National Credit GuaranteeTrustee Company Limited ("NCGTCL") a wholly owned Trustee Company of Governmentof India. Further the company’s focus on building infrastructure to indigenizemanufacturing processes has given rise to scope for future exports and saving valuableforeign exchange for India.

The Company also took some Cost saving measures such as merging the Manesar plant withRohtak plant for operational synergies and cost reductions and optimization of manpowercost by reductions in manpower gradually in non-productive areas.

Shivam Autotech’s investments are also focused on the global market to propelgrowth. Considering the results of Shivam Autotech its product diversification to tapnewer potential and an upbeat industry scenario I have no doubt about our ability tomaterialize our vision and to work strongly towards creating immense value for you ourstakeholders.

No doubt an environment of fear is eclipsing the industry. But it is equally true thatthe industry is all set to become the third-largest in the world by 2025 andglobalization is considered auspicious rather than a menace.

Shivam Autotech Limited has planned its growth trajectory in the coming quarters byplanning product launches. This include differential axles used by the three-wheeler EVsegment currently undergoing trials besides other products for the aftermarket in bothtwo-wheeler and four-wheeler category viz. _lters for two-wheeler Front axle for tractors& Hybrid kit to convert an ICE car into Hybrid car. The product and vehicle categoryapplication mix is as per below table:

Product Integrated Di_erential Vehicle Application Category Electric Rickshaw / E-Cart
Axle – 33" / 35"
Integrated Di_erential L5 3W EV
Axle – 46 "
EV Gearbox 2W EV Scooter + L5 3W EV + 4W
EV LCV
Mechanical CBS 2W EV (Drum – Drum System)
Hydraulic CBS 2W EV (Disc – Disc System)
Split Service Braking System L5 3W EV
Independent service braking system Quadricycle + L2 3W EV (Export)
Tractor Front Axle 18 – 30 HP 4WD Tractor

With rapid globalization and foreign direct investment inflow into the Indianautomotive industry the auto components sector is set to create newer opportunitiesand verticals for further growth. This is a moment to celebrate the trust you have endowedon Shivam Autotech Limited and I look forward to our journey together.

Before I end I extend my appreciation to the Members of the Board for their supportand guidance during this challenging year. I also thank all our suppliers lenderscolleagues and my leadership team for their relentless effort in achieving our objectivesduring this difficult times. I would also like to thank you shareholders for yourcontinued trust confidence and support in the coming years.

Stay Informed! Stay safe!

Thank you.

Neeraj Munjal

Managing Director

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