BSE LiveMay 28, 10:33
Bid Price (Qty.)
Offer Price (Qty.)
NSE LiveMay 28, 10:33
Bid Price (Qty.)
Offer Price (Qty.)
This has been a year of ‘Resilience in the face of headwinds’. This was a transformative year with the introduction of the Goods and Services Tax (GST), though trade conditions remained volatile during early implementation, they have since stabilized with an improvement in overall demand. The 3wheeler industry also moved in a positive direction with sales growing by 24% while exports recorded a whopping growth of 40%.
We at Atul have the benefit of a large portfolio that includes the economic pyramid with brands that have a relatively strong presence across the various categories. Our various initiatives have made us more agile, customer centric and responsive to the diverse and rapidly evolving marketplace. Our brands are driven by a low cost operative economy, making them more relevant to the consumers.
Atul Auto was born from an unwavering belief that by following our inner voice and convictions, we can make our presence felt across the three wheeler landscape, in India and across shores. That is why even as our operating environment changed dramatically, our unwavering philosophy of placing clients at the heart of everything helped us deliver strong double digit growth.
Leaving behind negative impact of previous fiscal in the FY 2017-18 we have attained both top line growth and margin improvement. Our business turnover on comparable basis, grew by 16.73% driven by volume growth of 10.18% (42,744 vehicles in FY 18 against 38,795 vehicles in FY 17). And despite the uphill circumstances, profit after tax grew by 24.67% to Rs.46.19 crores along with strong and sustained cash generation. We also continued our proud tradition, as we have since 2009, of maintaining our Debt Free Status during FY 2017-18.
In alternative fuel three wheelers, we accelerated our growth momentum and further strengthened our competitive position. Export volume delivered outstanding performance primarily driven by volume growth as our exports reached 3411 vehicles as against 2288 vehicles in FY 17. We also spread our wings across the globe as we entered in newer locations during FY 2018 like Ecuador, Guatemala, Ethiopia, Iraq, Somalia, Afghanistan etc. This performance was further backed up by increasing sales in existing markets like Nigeria, Mexico, Bangladesh, Kenya, Honduras, Peru etc.
Emerging as a Strong Brand
At Atul we always look at the long arch of growth, planning moves today to create greater strategic leaps for tomorrow. Towards this we have continued focus on strong brand and market building initiatives. Our sales and distribution system, with national presence across urban and rural channels, remains a key competitive advantage.
Looking to achieve true transformation instead of just incremental growth, we continue to expand our direct coverage and leverage technology and intelligent analytics to significantly enhance our customer service. We have also continued to make significant investments in building capabilities to expand our product range and distribution channels for the future and substantial progress.
Transformation through Innovation
Our transformation program is designed to provide greater flexibility in how we are positioned across our diverse markets and customer base. Our foundations and long tradition of R&D differentiates us from others and helps us to evolve products and upgrade existing ones, thus providing the resilience and agility that today’s trading environment demands.
With strong R&D support, we have upgraded our manufacturing set up that can produce BS IV vehicles in FY 2017. From fiscal year 2018, we have also made the required strategic tie-ups and firmly moving towards transforming the product compliant with BS VI norms.
The introduction of Green 3Wheeler last year was the beginning of a new era for the industry as well as for us. We have accelerated to innovate and invest behind these emerging categories with excellent results and believe that the electric vehicles are the future of automobile sector.
Powered by People
The key driver in delivering these strong results has been the important role that each of our businesses and functions have played. Individually and collectively, every Atul employee, has risen to the challenge. Through their efforts, the team across Atul is navigating the testing times in a robust way. Moreover, the Board and management are laying the foundations to make the Company more resilient and better able to capture the opportunities ahead.
Towards a Brighter Future
Atul is accelerating on a path towards new horizons of growth, just as a New India is taking shape. This transformative direction we are taking is reflected in our theme “Naye Bharat ka Humsafar” We have a proven business model that supports long-term, compounding growth and sustainable value creation. Growing the core, evolving the portfolio and developing distribution channels remain at the heart of our future strategy.
I would like to thank all our stakeholders for standing strong by us through our journey. As we head towards the future and beyond, I assure you of our keen enthusiasm to take on new challenges and an unflinching commitment to deliver consistent growth, in any market environment.
J J Chandra
Chairman and Managing Director