<dhhead-MESSAGE FROM THE CHAIRMAN & MD</dhhead-
At Precision Camshafts Limited, our values of Purpose, Prowess, and
Progress drive our every endeavour. We believe in the power of Purpose, aligning our
actions with a greater vision to create meaningful impact in everything we do. With
Prowess, we strive for excellence, pushing boundaries and setting new standards in the
industry.
Dear Stakeholders,
I am pleased to share Precision Camshafts Limited's Annual Report for
FY 2023-24. Despite facing several global economic challenges, we delivered a resilient
performance driven by our pursuit towards achieving excellence and fostering innovation as
we progress towards Lakshya 2030.
At Precision Camshafts Limited, our values of Purpose, Prowess, and
Progress drive every endeavour we undertake. We believe in the power of Purpose, aligning
our actions with a greater vision to create meaningful impact in everything we do. With
Prowess, we strive for excellence, pushing boundaries and setting new standards in the
industry. Through Progress, we embrace innovation and continuous improvement, ensuring
that we evolve with the changing times. Together, these values guide us as we navigate
challenges, seize opportunities, and chart a course towards a brighter, more sustainable
future.
Economic Conditions
The Indian economy demonstrated remarkable resilience amid global
economic uncertainties, achieving over 7% growth for the third consecutive year.
Projections indicate further expansion by 7% only in FY 2024-25, driven by increased
public sector investment, a strong financial sector, and significant growth in non-food
credit.
India has solidified its position as the world's third-largest fintech
economy, trailing only the USA and the UK. Surpassing Hong Kong, India now holds the
fourth spot in global stock markets, signalling robust domestic and international investor
confidence, buoyed by sustained IPO activity. The Indian Government is actively pursuing
an economic policy agenda to revitalise the country's growth trajectory, focusing on
reviving the financial sector, streamlining business regulations to spur economic
activity, and bolstering physical and digital infrastructure to enhance connectivity and
competitiveness in manufacturing.
Industry Landscape
The Indian automobile industry has served as a trustworthy indicator of
economic well-being for long, reflecting the nation's growth and technological
advancements. The country commands a significant position in the global heavy vehicles
market, ranking as the largest producer of tractors, the second-largest manufacturer of
buses, and the third-largest producer of heavy trucks worldwide. According to the Society
of Indian Automobile Manufacturers (SIAM), the industry produced 2,84,34,742 units in FY
2023-24 reflecting a 9.6% increase over FY 2022-23. The sector is poised for future
growth, driven by trends such as vehicle electrification, especially in three-wheelers and
small passenger cars. One key trend that will shape our future is the transition to EVs.
With the Government targeting 30% EV penetration by 2030, the demand is expected to surge.
Company & Segment Overview
The Precision Group currently operates 14 plants in 3 countries,
serving over 50 renowned global customers and manufacturing more than 15 diverse products
for various industries, primarily focussed on the automotive space. With a global
workforce exceeding 2500+ employees, Precision Camshafts Limited has consistently achieved
a year-on-year (YoY) growth rate of 12.16%. We have actively pursued the development,
validation, and supply of new components and materials throughout our journey. Our
offerings have extended beyond camshafts, catering to customers who are powertrain
agnostic and not reliant on internal combustion engines (ICE). Furthermore, we have formed
a dedicated team to diversify our product portfolio and expand the customer base to ensure
future readiness in line with the targets set during Lakshya 2030. By successfully
expanding our camshaft business with existing customers and acquiring new ones, we
continue to strengthen our client base, positioning ourselves for sustained growth.
Segmental Overview
MEMCO, Nashik, demonstrated growth in total income, reaching 50.07
Crores in FY 2023-24, compared to 53 Crores in FY 2022-23. Our Company aims to further
expand its business by acquiring new customers while retaining existing ones.
MFT, Germany, also experienced growth, with a total income of 160.81
Crores in FY 2023-24, up from 171 Crores in FY 2022-23.
Looking ahead, we anticipate ongoing challenges but remains focussed on
growth.
EMOSS, Netherlands, witnessed a substantial increase in total income,
reaching 147.69 Crores in FY 2023-24, compared to 231.5 Crores in FY 2022-23. EMOSS has
a positive order book for the next two to three years.
Financial Performance
PCL's revenue from operations reached 674.61 Crores in FY
2023-24. The EBITDA for FY 2023-24 is 139.63Crores, compared to 117.97 Crores in FY
2022-23. The PAT was recorded at 78.40 Crores for the fiscal year, compared to 60.94
Crores in the previous year. With regard to exports, the total value accounted for 48 % of
the year's sales, while the remaining balance constituted domestic sales. We are
optimistic and taking strategic actions to further strengthen our topline as well as
bottom line, going ahead.
Electric Mobility
In line with the progress of e-mobility in India, PCL is actively
focussed on developing an electric powertrain tailored for sub-four-ton LCVs, targeting
the thriving Indian market. This effort culminated in the successful delivery of our
electric commercial vehicles to valued customers in November 2023. Such positive impacts
of our innovations on businesses and the environment act as a driving force for all our
endeavours.
PCL has successfully delivered electric light commercial vehicles
(eLCVs) to a diverse range of customers across India. This marks a significant step in
ensuring customer confidence in the reliability, efficiency, and performance of the EMOSS
re-powered electric light commercial vehicles.
We are also working closely with our valued customers to understand
their unique operational needs and challenges. The positive feedback that we have received
reinforces our belief that EMOSS EVs are not only environmentally friendly but also offer
practical and cost-effective solutions for businesses. Thus, these vehicles entail a lower
cost of ownership compared to diesel vehicles. The positive interactions we have had with
state and city officials and private corporations have further reinforced our confidence
in our E-mobility offerings for the country.
PCL is forging multiple supplier and customer partnerships in India,
anticipating that these collaborations will be pivotal in the swift development,
implementation, and furthering of our E-mobility initiatives. We anticipate continued
growth in our Indian operations over the next three to four years. At the same time, we
are actively directing our attention towards the European market, which presents steady
demand and promising order prospects.
Lakshya 2030
Our inaugural annual offsite meet, 'Lakshya 2030', held from 4th March
to 8th March 2024, across Solapur and Mahabaleshwar, was a dynamic and purpose-driven
event. The Solapur segment focussed on setting expectations, benchmarking manufacturing
practices, fostering cross-company collaboration, and establishing high standards for
operational excellence. The second part of our offsite meeting took place at the scenic
hill station of Mahabaleshwar. Amid stunning landscapes, we engaged in team-building
exercises, strengthened bonds, and collectively crafted vision and mission statements.
Our inaugural annual offsite, ‘Lakshya 2030', held from 4th
March to 8th, 2024, across Solapur and Mahabaleshwar, was a dynamic and purpose-driven
event. The Solapur segment focused on setting expectations, benchmarking manufacturing
practices, fostering cross-company collaboration, and establishing high standards for
operational excellence.
Speaking of PCL's initiatives towards boosting organisational
growth, we are taking several steps to enhance our manufacturing capabilities further.
Firstly, we are in the process of introducing a highly automated assembly line for
camshafts, which will improve efficiency and quality in production. Additionally, our
Company is setting up a new manufacturing facility dedicated to producing EV transmission
parts. Through this facility, we will integrate the latest technology to meet the growing
demand for electric vehicles.
Furthermore, PCL is investing in a green sand facility to manufacture
products like differential cases and housings, aligning with our commitment to sustainable
practices. We are also driving continual improvement through automation and productivity
enhancement initiatives across our operations. These efforts are in line with our goal to
remain at the forefront of innovation and efficiency in our industry. All these
initiatives not only align with our individual Company goals but also solidify our
commitment to a shared vision, propelling us towards a prosperous future.
Our People
At PCL, we are dedicated to providing our employees with a safe and
healthy work environment. Our Company prioritises employee development by investing in
various training programmes, mentorship, and performance evaluations to enhance career
growth and skills. We also focus on employee engagement through team-building activities
and recognition programmes, fostering a culture of diversity and inclusion with equal
opportunities for all employees.
Safety considerations form an integral part of PCL's commitment
towards employee welfare. As such, we ensure strict adherence to occupational health and
safety regulations. Appropriate safety training is provided to all employees and robust
safety protocols are maintained to ensure a safe workplace environment for them. Through
these initiatives, we demonstrate our commitment to the well-being and professional growth
of our valued employees.
Sustainability Commitment
PCL places a strong emphasis on environmental stewardship. Recognising
the importance of safeguarding the environment, we have undertaken significant initiatives
to minimise our Company's environmental footprint. We have implemented in-house water
treatment activities to recycle water and have established treatment plants. We have also
created green covers across our facilities.
In terms of corporate social responsibility (CSR), we are actively
engaged in educational and healthcare activities aimed at improving the communities in
which we operate. By focussing on sustainable practices and community development, PCL is
dedicated to nurturing sustainable communities and fostering a future that prioritises
environmental sustainability.
Way Forward
Over the past thirty years, we have established our Company as a
paragon of excellence, competitiveness, and customer-centricity. Our commitment to quality
has earned us global acclaim as a premier manufacturer of camshafts for passenger cars,
with a remarkable 70 % market share in India alone. As we move forward, we are excited to
explore new opportunities in the automotive industry, particularly in the realm of
electric vehicles.
I want to extend my heartfelt gratitude to my esteemed colleagues on
the Board for their support and encouragement. Their guidance has been instrumental in our
success. I also want to express my sincere appreciation to our exceptional Management
Team, dedicated staff, and dependable suppliers for their tireless efforts and commitment
to excellence.
Above all, I am deeply grateful to our stakeholders for their firm
belief, continued trust, and invaluable contributions. Your consistent support is
essential as we embark on this journey towards further growth and innovation. Let us
continue to work together, striving for excellence and shaping the future of Precision
Camshafts.
Warm regards,
Yatin S. Shah
Chairman & Managing Director