Dear Shareholders,
It is my privilege to present to you our Annual Report for FY 2022-23.
We feel an immense sense of pride in our performance for the year and a deep sense of
optimism for the future that lies ahead of us.
Amidst unprecedented challenges in the external environment, we have
demonstrated resilience, stability, and adaptability. We have continued to navigate the
evolving landscape of the automotive industry with innovation, collaboration, and a
customer-centric approach.
FY 2022-23 witnessed major fluctuations in the global economy,
attributed to macroeconomic volatility and geopolitical factors. Nevertheless, emerging
markets have proven resilient and are positioned to provide stability amidst these adverse
circumstances. The Gross Domestic Product (GDP) growth of the Indian economy for the year
stood at 7.2%, positioning the country as one of the fastest-growing economies worldwide.
This growth reflects the sustained efforts made by the government to solidify India's
prowess on the global stage. It can be attributed to focused initiatives aimed at
strengthening infrastructure, manufacturing, and the overall business ecosystem, coupled
with strong private consumption.
Presently, India ranks as the third-largest global market for passenger
cars, highlighting the increasing automotive demand. This has consequently triggered a
considerable uptick in the demand for automotive components within the nation. While the
year commenced with supply chain disruptions owing to geopolitical conflicts, improved
supply chain management and greater availability of commodities have helped stabilize
prices over the past year. Moreover, favorable policy initiatives are expected to support
the growth of the industry.
The robust domestic environment and the aspirations of Original
Equipment Manufacturers (OEMs) to procure top-tier auto components to cater to the
burgeoning demand for sophisticated and distinct vehicles will further propel the growth
momentum.
Despite the obstacles faced, we have achieved impressive results in FY
2022-23 with 14.3% growth in revenue to Rs. 64,975.01 lakhs compared to Rs. 56,843.32
lakhs in the previous year. This was primarily attributed to the expansion of customer
base and sustained increase in passenger vehicle volumes.
With an unwavering focus on customer satisfaction, we have consistently
strived to provide unparalleled products and services of the highest quality. This
dedicated approach has paved the way for us to build enduring relationships with our
customers, resulting in a substantial upsurge in demand for our offerings.
PAT for the year stood at Rs. 1,053.5 lakhs compared to Rs. 769.4 lakhs
in the previous year, registering an increase of 36.92%. Increased operational efficiency,
productivity improvement, and significant cost-saving measures including rationalization
of manufacturing plants have helped us achieve higher operating margins.
We have entered in to share purchase agreement to unlock the value of
our subsidiary company investment, that would result in substantial influx of funds
totalling Rs. 95 Crores over the coming two years. This strategic move not only fortifies
our financial position but also effectively addresses the requirements for working capital
enhancement and debt reduction.
I am pleased to state that the Board of Directors at Autoline
Industries unanimously approved a significant expansion initiative, involving the
establishment of a state-of-the-art facility in Sanand, Gujarat. This strategic move is
aimed at catering to the burgeoning Electric Vehicle (EV) market, positioning our Company
for accelerated growth. Moreover, this expansion not only facilitates potential business
in the EV sector but also ensures the retention of existing partnerships with longstanding
OEMs. We expect operationalization of the new plant at the beginning of Q4 of FY24 as
considerable work including land acquisition, equipment ordering and other resources
mobilization have been put in motion.
Our promoters and other investors contributed significant capital in
past showing their strong faith on the Company and its business. The promoters continued
to contribute during the year and facilitated fundraising efforts for the Company. The
promoters' contributions stand as a pivotal pillar for the stability and expansion of our
Company. Their financial investment, coupled with astute strategic direction, has enabled
us to navigate adversity and capitalize on promising prospects. Their steadfast commitment
and belief in our overarching vision and growth potential have been instrumental in
propelling Autoline to sustained success.
PAT for the year stood at Rs. 1,053.5 lakhs compared to Rs.
769.4 lakhs in the previous year, registering an increase of 36.92%. Increased operational
efficiency, productivity improvement, and significant cost-saving measures including
rationalization of manufacturing plants have helped us achieve higher operating margins.
India is poised to take a prominent role in the electric vehicle (EV)
sector, empowered by favorable opportunities and policies at both central and state
levels. The impending growth of the EV market, predominantly catalyzed by the two-wheeler
and three-wheeler segments, is leading to significant investments. Noteworthy is the
emerging traction within the four-wheeler sector, as prominent industry players prepare to
introduce their own EV models.
In line with these developments, we are strategically positioned to
expand our product portfolio and enhance capabilities to cater to the evolving needs of
our customers. Through innovation and progressive technologies, we remain steadfast in our
pursuit of excellence and differentiation.
Sustainability lies at the heart of our ethos and underpins our
overarching strategy. With a firm commitment to responsible practices, we are actively
embracing novel approaches and integrating Environmental, Social, and
Governance (ESG) principles into our risk management and sustainability
strategy. We firmly believe that these proactive measures not only align with our values
but will also equip us with a competitive advantage vis-a-vis our industry peers.
Finally, I would like to express my profound gratitude to our
stakeholders for their continued trust and support. Our journey would be incomplete
without acknowledging the persistent efforts of our dedicated employees whose hard work
and contributions enable us to fulfill our strategic goals and endeavors.
We remain optimistic about the overall demand and reiterate our
commitment to delivering value to our customers, shareholders, and other stakeholders.
| Warm Regards, |
| Prakash Nimbalkar |
| Chairman & Independent Director |
| DIN: 00109947 |