To Our Shareholders
My report on Sintercom's fiscal year 2019-2020 comes during incredibly challengingtimes during which I hope you your family and friends are safe and in good health.Across the globe we are all battling Covid-19 an invisible and persistent enemy. As aresult for the first time in history we experienced a complete lockdown across mostcountries with an enormous impact on all aspects of our societies markets and economies.Secondary macro issues during this time included seeing some clarity on Brexit; howevertrade issues between the U.S. and China still persist.
India was no exception to a challenging year. Despite the country re-electing theexisting government with a large majority the economic situation continued to worsen. Theeconomy was impacted by falling demand in the first half of fiscal year 2019-2020 with thegross domestic product (GDP) declining to 4.4 percent. That decline continued in the lastquarter with GDP falling to 3.1 percent. In addition the Indian automotive sectorunderwent significant cyclical and structural changes during this period with the eventualslowdown impacting our total revenue.
I am proud of how Sintercom has risen to the challenge of operating during thisunprecedented time. The company has been laser-focused on taking steps to safeguard ouremployees and support our customers suppliers and local communities. The entiremanagement team is aligned and committed to taking the necessary actions to keep movingforward in this complex and rapidly changing environment.
Dynamic Industry Landscape
Today's economies are transforming driven by emerging markets the acceleration of newtechnologies sustainability policies and changing consumer preferences. Digitizationincreasing automation and new business models are revolutionizing industries. In theautomotive sector these forces are fueling disruptive technology-driven trends includingdiverse mobility autonomous driving electrification and connectivity.
Layered into these trends is the impact of Covid-19 which has shown that businessesmust become more flexible agile and prepared for new customer and mobility issues. Whilethe long-term impact is still unknown this unforeseen force may spur new trends andlonger-term changes in the automotive industry beginning with mobility. Communicationswithout travel continued work-at-home trends and changes in commuter patterns willsignificantly impact the industry. Anticipating and getting ahead of this dynamiclandscape with diversified product segments is key to de-risking the business andcapturing new opportunities. Sintercom has taken the right steps in this direction and iswell positioned to take on increasingly complex customer requirements with our outstandingproduct and technology offerings.
Growth Fueled by Innovation and Technology
As our industry evolves Sintercom is delivering innovative solutions that support ourcustomers' top priorities. We are strengthening our product and process technologycapabilities as we expand our portfolio to serve the fast-growing commercial vehicle andoff-road equipment segments.
We are also pursuing new opportunities in export markets which offer significantgrowth for our existing product range with its inherent competitive advantages versustraditional offerings. Globally there is scope to increase exports and we intend toleverage our relationships with global OEMs in India to strategically exploreopportunities in overseas markets.
I am cautiously optimistic as we look ahead. We will be dealing with the pandemic andits effects for some time so we must continue our focused and sustained efforts toovercome this challenge. However as we look further down the road the transformation ofmobility is not slowing and will continue to drive the industry and demand for ourproducts and solutions. Although Covid-19 will likely impact our 20202021 performance andthe timeframe for a full recovery is unclear the overall direction and trends of ourindustry are positive and point to future opportunities.
On behalf of the entire Sintercom team we are grateful for the support from ourshareholders especially during these challenging times. I also thank our employees fortheir unwavering commitment to serving our customers growing our business and supportingthe communities where we operate. Finally we appreciate our customers for placing theirtrust in Sintercom knowing that we are dedicated to meeting their expectations andcommitted to their success.
The entire leadership team is focused on capturing new opportunities by strategicallyachieving the right balance across our product portfolio investments and regions where weoperate. With a solid foundation and balance across our operations we are positioningSintercom to successfully leverage industry trends to drive long-term growth andshareholder value.