Kuldip Singh Rathee
Chairman & MD
As a technology-driven business with advanced engineering capabilities,
offering future-ready mobility solutions and flexibility to customers for innovative
designs, we are well-positioned for long-term growth across domestic and international
markets.
Dear Shareholder,
On behalf of the Board of Directors and the entire leadership team of
ASK, I convey my heartfelt gratitude to all our investors and stakeholders for placing
their trust in our business, vision, strategies and execution capabilities.
Our inaugural annual performance report for the financial year 2023-24
following a successful IPO, contains a detailed account of our financial and operational
performance on the backdrop of the evolving dynamics of our sector.
For over three decades, we have crafted a reliable and proven track
record in supplying critical safety systems and complex precision
solutions. We are the largest manufacturer of Advanced Braking System
products for two wheelers in India with approximately 50% market share across Original
Equipment Manufacturer (OEM), Original Equipment Spares (OES) and Independent Aftermarket
(IAM) channel.
We have significantly diversified our product offerings under Advanced
Braking Systems, Aluminium Light Weighting Precision Solutions, and Safety Control Cables
business segments backed by strong technological Support from our Four Technical
Collaborations and One Joint Venture with leading Global Commercial Vehicle Component
Supplier.
In the Aluminium Lightweighting Precision Solutions segment, our
comprehensive In-house Design Centre, a Tool room facility and robust engineering
capabilities have prominently positioned us to capture opportunities in the light
weighting and thermal management space with increasing adoption of EVs in India.
We are also leveraging best-in-class technology received with our
technical collaboration from Taiwan to produce and sell Safety Control Cables to 2W OEMs
and to Independent Aftermarket customers through our deep distribution network of 400+
dealers who are instrumental in penetrating in markets for all our products across India
We have cultivated long-standing relationships ranging from 17-31 years
with our major customers who are esteemed Indian and global OEM players. This exemplifies
our dedication in delivering value to all our customers.
During the financial year 2023-24, We delivered robust performance and
recorded an impressive growth in revenue, margins and earnings. This was the result of our
concentrated focus on expanding value-added businesses, improving on the cost
efficiencies, and driving towards operational excellence.
In FY24, we outperformed 2w industry growth and delivered YoY growth of
17% in Revenue, 26% in EBITDA and 41% in PAT. Our Total Consolidated Income for the year
stood at H 3,00,495 Lakhs with EBITDA at H 31,108 Lakhs and PAT at H 17,377 Lakhs. I am
delighted to share that we have achieved double-digit EBITDA margins at 10.4% in FY24 as
compared to 9.6% last year. We are confident to sustain this and target to increase these
margin levels further.
As a result, we have delivered strong returns in FY24 with ROACE at
23.64% and ROAE at 23.69%. Our Earning Per Share (EPS) also increased from H 6.2 in FY23
to H 8.8 in FY24. We have improved our debt profile with Debt to Equity reducing to the
level of 0.42 against 0.49 last year.
All product segments of our business performed well. We have sustained
market leadership position in the Advanced Braking Systems with revenue growth of 7% in
FY24. The
Aluminium Light Weighting Precisi?n Solutions revenue recorded
impressive growth of 29% and Safety Control Cable grew by 36% in FY24 on YoY basis. In
line with our growth strategy, we have strengthened our position in the EV segment and
recorded revenue of H 12,044 Lakhs with 133% YoY growth. We have also significantly
expanded our export business and delivered revenue of H 14,664 Lakhs in FY24 with 58% YoY
growth. We have also made a turnaround in our CV business operated under Joint Venture ASK
FRAS-LE FRICTIONS PRIVATE LIMITED. Our share of profit in JV improved from losses of (H
589 Lakhs) in FY23 to profit of H 1,650 Lakhs in FY24.
We continue to focus on expanding our production capacities to cater to
the growing demand from our valued customers. In this regard, we have commissioned our
state of the art mega manufacturing facility with an investment of approximately H 38,000
Lakhs up to March 31,2024 in Karoli, Rajasthan.
Additionally, our Board of Directors
has approved an investment of H 20,000 Lakhs for setting up of our 18th
Plant in Bengaluru, Karnataka under our wholly owned subsidiary, ASK Automobiles Private
Limited. This will be our third manufacturing facility in Karnataka and will allow us to
cater more effectively to the increasing demand of our southern customers. We are
confident that these investments will not only strengthen our operational capacities, but
also position us for continued growth in the coming years.
With light weighting and thermal management being the focus area of
domestic and global OEMs, ASK is aggressively looking to utilize its aluminium casting
expertise to expand business footprints, both in India and globally. The newly added
capacities in Karoli, Rajasthan and an upcoming new facility in Southern India, Karnataka
will help us scale up the growth.
Further, to grow our business with diverse product portfolio, we have
ventured into a new strategic partnership for HPDC Alloy Wheels for Two-Wheeler with
Technical Assistance from LIOHO Machine Works Ltd, Taiwan. Currently, the alloy wheels are
produced in India using Gravity Die Casting technology. We will have the early mover
I am delighted to share that considering our robust performance in
FY24, the Board has recommended dividend of 50% i.e. H 1.0 per equity share of face value
of H 2.0 each.
advantage to produce the Alloy Wheels using HPDC technology if this
gets accepted and established with 2W OEMs in India. This new technology is being tested
with a leading 2W company LIOHO Machine Works Limited, Taiwan, who is already using this
technology successfully overseas.
Also, In April 2024, we have signed a strategic Joint Venture agreement
with AISIN Group (ranked amongst the Top 10 Global Tier One Automotive Suppliers) to
market and sell auto components in Independent Aftermarkets for Passenger Car Products. We
are working on the formation of the JV company with 51% ASK stake. In the PV segment,
AISIN has a wide range of product basket, and this will complement us, as ASK has well
established network of 400+ dealers in Independent aftermarket and capability to benefit
from the increasing penetration in India.
Our Company is acting responsibly in business and dedicatedly working
towards sustainability with an aim to make significant contribution to the society and the
environment.
We are progressing well towards building a more sustainable future by
undertaking initiatives to lower carbon emissions, reducing wastage and usage of renewal
energy. We are making significant investments in our quest towards transition to renewable
energy.
Employee wellbeing and safety of our workforce is also one of our top
priorities. We firmly believe that providing a safe working environment and nurturing a
diverse and inclusive workplace is essential for employee satisfaction and improved
productivity of our employees, who continuously
strive for excellence. By fostering such an environment, we cultivate a
workplace and organizational culture that are poised for sustainable growth and
achievement.
In addition, as a contribution towards socio economic growth of the
society, our philanthropic arm AHSAAS continues to work on the ground level to support
Education, Health Care, Women Safety, Nurturing the Skill development and Sports Talent in
our country.
Further, to promote Ethical Conduct and Corporate responsibility, the
Company has put in place sound governance policies & practices ensuring transparency
and adherence to the regulations.
Our commitment to institutionalize these practices in future will
enable us to continue to conduct business responsibly, sustainably and efficiently.
As a part of our ESG Initiative and transition towards renewable
energy, a Solar Power Plant of 9.9MWp is being set up in Sirsa, Haryana for our captive
consumption.
Lastly, as a technology-driven business with advanced capabilities, we
are well-positioned to offer future- ready mobility product offerings and solutions to our
customers, which will enable long-term growth prospects for ASK in domestic and
international market.
I am extremely confident that our recent partnerships with global
players and capacity expansion plans will immensely contribute and support growth of our
company in future.
We are and will remain committed to keep contributing towards the value
creation of all our Stakeholders.
Kuldip Singh Rathee
Chairman & Managing Director