FROM THE CHAIRMAN''S DESK (Chairman Speech)
Synergies in relationships create value and a symbiotic approach is essential to create a win - win result. A cohesive organization has been our guiding principle that formed Jay Bharat Maruti Ltd.''s FY17-18 mission of ''Growth & Expansion''.
With consistent growth over the years, India is the fastest growing G20 economy today. Increasing investments and exports, aptly supported by the smooth implementation of the new Goods and Services Tax (GST), have been the major growth engines. With capacity utilization rising, corporate earnings recovering and the recapitalization of public banks, investment has revived. Private consumption has suffered from the confidence and employment shocks associated with demonetization. However, recovery is underway as depicted by the rebound in vehicle sales. Our Government''s dual objective of bringing the unorganized sectors into the tax compliant mainstream and propelling the benefits of economic growth to larger sections of our society have strengthened the foundation of a new India that is already on its way towards a sustained economic growth in the coming decades.
The Automotive Mission Plan 2026 aims to propel the Indian Automobile Industry to be a frontrunner in the Make In India programme, as it is amongst the foremost drivers of the manufacturing sector. Over the next decade, the Indian automotive sector is likely to contribute in excess of 12% of the country''s GDP and comprise more than 40% of its manufacturing sector. The AMP envisages that the Indian Automotive Industry will grow 3.5-4 times in value from its current output of around Rs 4,64,000 cr to about Rs. 16,16,000 - Rs. 18,88,500 cr by 2026, thereby, constituting almost 50% of the total manufacturing GDP.
Fiscal 2017- 2018 was a year of growth driven by a founding principle of being responsible, dynamic, efficient, transparent and reliable. The Indian automobile industry grew by 14.81% to reach 29.07 million vehicles. The passenger vehicle segment recorded an annual growth of 7.87%, riding on a robust growth of 20.97% in the demand of utility vehicles. Moreover, the sale of commercial vehicles and two wheelers grew by 21.13% and 14.79%, respectively. The overall automobile exports in FY17-18 registered a growth of 16.38%, backed by strong growth of 20.51% in 2 wheeler and 40.74% in 3 wheeler vehicles segments. According to ACMA, the Indian Auto Components Industry would grow to US$ 100 billion by 2020, backed by strong exports estimated to be of US$ 80-100 billion by 2026, from the current US$ 11.2 billion. With this as its core we were able to deliver quality products to our partners, driven by our efficiency in design and advanced automation.
I am glad to report a double digit growth in your company''s revenues by 13.48% at Rs. 17340.21 million. EBIDTA witnessed a remarkable jump of 18.39% from Rs 1345.22 million in FY17 to Rs 1592.58 million in FY18. The EBIDTA margin in FY18 increased to 9.26% from 8.8%. Your company''s net profit for the year stood at Rs 588.91 Million, as against Rs 537.74 million in FY17.
The highlight of the year has been start of production at your company''s state of the art plant in Vithalapur, Gujarat which is catering to the requirements of Suzuki Motor Corporation. JBML also entered into a strategic joint venture with Ogihara with an objective of strengthening our tooling capabilities. The year has been satisfying for us all at Jay Bharat Maruti Ltd, and we intend to continue with our mission of creating value for all stakeholders by focusing on our strengths and delivering synergistic congruence to grow and expand.
To conclude, I would like to formally thank our partner Maruti Suzuki India Ltd for their continued patronage on our delivery prowess. I extend my sincere appreciation to the management and the staff of the company for their valued contribution, as always. A big thanks to you, our valued shareholders. Your faith and trust in our capabilities keeps motivating us to evolve higher and stronger.
Finally, I would like to end this note by quoting Benjamin Franklin,
Without continual growth and progress, such words as improvement, achievement, and success have no meaning.
Thank You and Jai Hind.
Surendra Kumar Arya Chairman