Dear Shareholders,
As we enter a new fiscal year, I am pleased to share the progress we have made at Jamna
Auto.
In the fiscal year 2023-24, we achieved a consolidated revenue of Rs.2,427 crore and a
profit before tax of Rs.283 crore, compared to a revenue of Rs.2,325 crore and a profit
before tax of Rs.229 crore in the previous year.
In the fiscal year ending 2023-24 our balance sheet remains healthy and financially
deleveraged. We continue to adhere to prudent financial policies, enabling us to fund all
our expansion plans through internal accruals. We are pleased to announce a final dividend
of Rs.1.30 per equity share, bringing the total dividend to Rs.2.40 per equity share for
FY 2023-24.
We remain committed to our Lakshya 50XT target, focusing on market and product
diversification while maintaining financial prudence.
As we look ahead, our focus will be on the following areas:
Markets
Generating higher revenue from diverse markets, particularly in the Indian aftermarket
and export.
Our revenue in the Indian aftermarket has grown by 10% from the previous fiscal year.
We have now allocated our Yamuna Nagar plant exclusively for aftermarket production and
plan to introduce new products to diversify our offerings beyond springs, which will
further boost revenue. Our existing air suspension systems, lift axles, and related
products are also seeing increased market penetration. In exports, we have commenced
supplies of springs to UD Trucks, a wholly owned subsidiary of Volvo. Additionally, we are
in advanced discussions with few other overseas OEMs to initiate product development. We
have also secured large distributors in Europe as customers for springs and related parts.
Our Hosur factory has been dedicated to exports and is currently being upgraded to meet
the specific engineering requirements of all overseas clients.
To expand our international customer base, we participated in Automechanika Istanbul,
which is Turkey's largest international trade fair and the biggest meeting point of the
automotive aftermarket industry in the region, where we showcased our product range. We
plan to continue participating in similar exhibitions in new markets to expand our
customer base.
Products
We are continuously expanding our product range by introducing new products and
improving the existing range of products. Our focus remains on enhancing operational
efficiency, continuous research & development and introduction of innovative products,
all while being cognizant of our commitment to sustainability.
In FY24, we optimized trailer air suspension systems, achieving a weight reduction of
approximately 30 kg per suspension, enabling customers to carry additional cargo.
Additionally, we have developed a new friction-welded trailer axle. We have secured a new
business from Ashok Leyland to manufacture slipper suspensions for their trucks, based on
their specifications and designs. Additionally, we have got another business from Ashok
Leyland for the supply of drop axles for lift axle kits. We have also received Letters of
Intent from Daimler, Volvo, and Mahindra and Mahindra to start the development of new
Stabilizer Bars. We have entered into a Memorandum of Understanding (MOU) with VE
Commercial Vehicles Limited to increase our share of business in their annual springs
requirement. As part of this initiative, we are establishing a new plant in Indore, Madhya
Pradesh. This plant will also produce new products, including U-bolts, hanger shackles,
spring brackets, spring pins and kingpins, to expand our product offerings and boost
sales.
Investments
To meet the growing demand for parabolic springs and support our product
diversification plan, we are making significant investments in two locations.
1. In Indore, Madhya Pradesh, our subsidiary, Jai Automotive Components Limited, is
investing approximately Rs.180 crores.
2. In Adityapur, Jharkhand, our subsidiary, Jai Suspensions Limited, is investing
approximately Rs.220 crores in a greenfield project.
Technology
At Jamna Auto, the R&D division is a key strength, driving continual progress and
innovation. As the Company focuses on being technology-driven, with a dedicated team, we
leverage cutting-edge technologies to create solutions tailored to evolving customer
needs. Parabolic springs, hybrid springs, and BS VI springs offer distinct advantages in
the market and create an advantageous niche for the Company to meet the evolving needs of
the market. We have also developed a new friction-welded trailer axle, currently
undergoing field validation, which provides a cost-effective solution for long-distance,
large-volume deliveries compared to rigid trucks.
Employees
Our people are the cornerstone of our success. Their dedication and passion drive our
growth. We provide numerous opportunities for career advancement and retention, ensuring
each team member feels valued and integral to the Jamna Auto family. We prioritize
creating a supportive work environment that encourages our talent pool to contribute their
best every day, to meet the targets of the Company.
CSR
Our commitment to inclusive growth guides our CSR efforts, creating meaningful change
in society. At Jamna Auto, we focus on enhancing the social, environmental, and economic
well-being of our community members. Emphasis is on promoting a clean environment, quality
education, sports, and health, including empowering youth and women. Looking forward, our
strategic vision will guide us, as we pursue new opportunities and aim for greater
heights.
Thank you for your support & being an essential part of Jamna Auto. Together we
will continue to faster growth & greater success.
With Best Regards,
Randeep Singh Jauhar
Chairman and Executive Director
1 August, 2024