Letter from the Chairman and Managing Director
Dear Stakeholders,
In the world of engineering, true mastery lies in the unseen; in the
exacting millimetre, the silent rotation of a shaft, the precise rhythm of motion that
powers industries and moves the world. At PCL, we take pride in being the invisible force
behind some of the most dynamic engines on the planet. This year, as we reflect on a
period of profound transformation, two truths have defined our journey: Strength in
Precision. Power in Resilience.
India Shining Bright
As we navigate 2025, the global economy is expected to face fresh
challenges, including tariff shifts and geopolitical volatility. Yet, India remains
uniquely positioned for resilience and growth. Supported by a decisive policy push in
manufacturing and infrastructure, the Indian economy today is pulsating with energy,
confidence, and forward momentum. While domestic consumption accounts for nearly 70% of
India's GDP, traditionally making it more sensitive to inflationary pressures, recent
macroeconomic trends and policy interventions have contributed to remarkable improvement
in recent years.
India's performance on inflation control has surpassed that of
several developed and emerging markets. This reflects strong institutional frameworks,
disciplined monetary policy, and the evolution of a resilient financial system. These
underlying macroeconomic strengths do more than stabilise the industrial landscape; they
create fertile ground for us to invest strategically, scale confidently, and lead with
conviction in a competitive global environment.
Our Business Performance
Camshaft Business: Engineering Leadership
The camshaft segment, our core business, continues to serve as a
cornerstone of PCL's strength and stability. With over 70% market share in the Indian
passenger vehicle segment, we remain the partner of choice for major OEMs across India and
internationally. Even amid evolving global macroeconomic conditions, we have retained all
existing orders and market positions, a clear reflection of the superior quality of our
solutions and the enduring confidence our partners place in us.
Our camshaft order book is secured through 2030, driven by successful
import substitution wins with Indian OEMs and new international mandates from leading
global automakers. Exports now account for 50% of our camshaft revenue, with our presence
extending across Europe, North America, Korea, Brazil, and Mexico, with Europe alone
accounting for nearly 20% of the business.
While the year saw a temporary decline in sales volumes of cast and
machined camshafts, primarily due to regional market slowdowns, our long-term outlook
remains firmly intact. In anticipation of future demand, we are expanding our footprint in
Solapur, where two state-of-the-art plants are nearing completion. These plants will focus
on assembled camshafts, engineered to meet the shifting specifications and performance
standards of both domestic and global OEMs.
We have already commenced serial production for one Indian OEM, and a
second, higher-volume programme is slated to begin in FY 2025-26. With upcoming installed
capacity ranging between 50,000 and 70,000 assembled camshafts per month, we are
well-positioned in a premium, high-margin product segment, one defined by advanced
precision engineering and enhanced value creation.
EV Business in India: A Bold New Chapter
Our transformation journey now extends well beyond traditional engine
platforms. A defining milestone this year was the commercial rollout of our Indian EV
retrofit programme, a strategic leap toward sustainable mobility. We introduced electric
light commercial vehicle (LCV) retrofit solutions with range options of 70 km, 100 km, and
250 km. These offerings have already secured orders from leading pan-India players across
logistics, e-commerce, and municipal services, with deliveries underway across 7-8 major
cities, including Delhi, Mumbai, Pune, Hyderabad, and Kolkata.
Priced at approximately 50% lower than a new electric LCV, our retrofit
solution offers a compelling value proposition with a customer payback period of under two
years, making it both cost-effective and environmentally impactful. To ensure a seamless
customer experience, we have built a robust support ecosystem, including nationwide
service coverage, financing tie-ups, and strategic charging partnerships.
While initial demand has been measured, early feedback from customers
has been highly encouraging. Based on ongoing pilot programmes, we see potential access to
a fleet of over 5,000 vehicles for future retrofitment, an exciting opportunity for scale.
Expanding on this momentum, we are now exploring the retrofitting of
heavier trucks, a segment that holds both strategic potential and attractive margins. This
initiative draws on proprietary technology from EMOSS, our European subsidiary, while
embedding localised manufacturing in India as a core pillar from the very beginning.
EMOSS and Global EV Landscape: Weathering the Storm
In Europe, EMOSS continues to operate amidst a challenging
macroeconomic environment, shaped by delayed public-sector decision-making, the rollback
of subsidies, and persistent geopolitical uncertainty. These factors have led to extended
project timelines, with a broader market recovery anticipated only by early 2026. Even in
the face of these headwinds, I am proud to share that EMOSS has successfully retained its
customer base and upheld its technological leadership, without requiring any financial
support from PCL.
Looking ahead, we are actively evaluating expansion into new markets,
including North America. However, we recognise that such initiatives will require a
development lead time of approximately 2 to 2.5 years. Our long-term commitment to
electrification remains resolute, and EMOSS is set to play a central role in driving this
transition forward.
Subsidiary Performance: Broadening Horizons
Our subsidiaries continue to enhance both our operational capabilities
and overall business resilience:
MEMCO has successfully completed a period of transformation and
delivered a strong turnaround. It is now making a healthy contribution to the group's
performance.
MFT (Germany) has stabilised its operations and is actively expanding
into new customer segments and product categories, a key move in our effort to reduce
exposure to cyclical market fluctuations, and broaden our revenue base. On the non-engine
front, we have begun production of our first brake component—a significant
diversification milestone. Additionally, MEMCO is expected to begin manufacturing
non-automotive components during the calendar year 2025.
We see these developments as meaningful steps forward in our journey
toward building a more diversified product portfolio, one that helps future-proof our
business and reduces over-reliance on traditional engine platforms.
Our Financials
FY 2024-25 has been a year of steady growth for PCL. We recorded a
revenue from operations of 612 Crores, demonstrating our ability to expand in a
competitive market. Our EBITDA stood at 111.56 Crores highlighting operational
efficiencies and disciplined cost management. Profit After Tax (PAT) stood at 7.35
Crores, compared to 78.40 Crores in FY 2023-24.
Exports continued to be a key driver, contributing 40% of total sales,
while domestic sales made up the remaining 60%, reflecting balanced growth across markets.
As we move forward, we remain confident in our strategic direction and are focussed on
initiatives that will strengthen both our revenue and profitability, ensuring sustained
value creation for our stakeholders.
Sustainability Driving Growth
We believe that real progress stems from balance, between business,
people, and the planet. Our approach to sustainability is rooted in purposeful, measurable
action. From recycling water through in-house treatment plants to cultivating green spaces
across our facilities, we remain committed to reducing our environmental footprint while
fostering healthier ecosystems.
But sustainability is not just about the environment; it is about
people too. Creating a workplace where safety, growth, and inclusion thrive is central to
our identity. We go beyond compliance with health and safety standards, embedding a
culture where every employee feels safe, respected, and empowered. Continuous learning is
a priority. Through tailored training, mentorship, and performance insights, we equip our
teams to grow both professionally and personally. We also recognise that diversity and
engagement fuel innovation and resilience. By fostering a culture of collaboration and
mutual respect, we ensure that every voice is valued and every individual can contribute
meaningfully.
Our responsibility extends beyond our factory walls. Through targeted
educational and healthcare programmes, we invest in the well-being of the communities we
serve, laying the groundwork for inclusive and sustainable development.
Looking Ahead
As I look ahead, I am energised by the vast potential that lies in
electrification, light-weighting, and sustainability. PCL is poised to evolve from a
specialised component manufacturer into a holistic solutions provider, serving the broader
powertrain and mobility ecosystems. With precision as our guiding principle and resilience
as our engine for progress, we step confidently into a future that is stronger, greener,
and more innovation-driven.
I would like to express my sincere gratitude to my distinguished
colleagues on the Board. Their unwavering support and thoughtful counsel have been pivotal
to our journey. I also extend my appreciation to our exceptional Management Team,
committed workforce, and dependable suppliers, for their relentless pursuit of excellence,
which continues to power our collective success.
Most importantly, I sincerely thank our stakeholders, our valued
customers, committed employees, trusted investors, and collaborative partners, for their
confidence and meaningful contributions. Your ongoing support is vital as we advance on
this transformative journey towards sustained growth and groundbreaking innovation.
Together, let us continue to raise the bar of excellence and shape the
future of precision engineering, forging a legacy of sustainable success for PCL.
Warm Regards,
| Yatin S. Shah |
| Chairman and Managing Director |