• Our enduring success as a leading end-to-end solution provider to major OEMs in India and Europe has emanated from single-minded focus and commitment to QUALITY and TECHNOLOGY.
  • With the momentum of an excellent year of profitable growth reflected in the 16.8% increase in Total Income to Rs. 65,617 million and 18.3% rise in Net Profit to Rs. 3,908 million, Endurance is positively placed to accelerate. With OEMs rationalising vendors, we are looking to supply more components from all our four product portfolios to existing customers as well as expanding our presence amongst new OEMs. As a future-ready organisation, we are geared up for changes like Industry 4.0, BS-VI emissions and the hybrid/electric vehicles with focus on light-weighting and frugal engineering. Our R&D and innovation teams are exploring next-gen technologies like Internet of Things and Artificial Intelligence for better trackability and traceability. Powered by favourable tailwinds in the form of strong growth drivers, we are confident of scaling.
  • EBITDA margin – 14.5%; PAT margin – 6%. ROCE – 23.3%, ROE – 20%, Net Debt/Equity – 0.1, Interest Cover (before exceptional items) – 26.8x
  • 55% Revenue comes from 2 wheelers, 35% comes from 4 wheelers, 10% from 3 wheelers. 71% Revenue derived from India, 29% from Europe.
  • We are totally geared to capitalise on BS-VI opportunities. Our teams have been working on various light-weighting and frugal engineering concepts for tomorrow’s mobility. Also, we are continuously looking at acquisition opportunities as well as alliances and tie-ups.
  • Industry growth: Driven by an overall positive consumer sentiment, the year saw a healthy growth in all the three key segments, namely, Two and Three-Wheelers, Passenger Vehicles and Commercial Vehicles. The Indian automobile industry, including two and three-wheelers crossed 29 million vehicles in sales. In the two-wheeler segment, sales of scooters rose by more than 19% while those of motorcycles rose by more than 15% (including exports). The star performer of the year undoubtedly was the three-wheeler category registering a growth of almost 30% – an outstanding show (including exports).
  • We continue with our B2C expansion through Aftermarket sales and services. The Aftermarket footprint now spans 23 countries and has over 35 distributors. This year, the revenue from Aftermarket sales rose to Rs. 2,415 million from Rs. 2,122 million last year.
  • I am quite optimistic about both the near and mid-term prospects of the Company. While on one hand demand for all key segments in the automobile space is set to continue its momentum, on the other hand, top OEMs are increasingly rationalising their vendor-base. I firmly believe this is a significant opportunity for us as we are amongst the few vendors who provide a one- stop solution for all our product segments. Another positive development is the implementation of GST – a unified market means we can now actually leverage our pan-India presence and reach. However, the single-biggest driver of growth in the days to come will be Quality; vendors who can consistently meet the exacting quality norms will feature in the top vendor rankings, and consequently OEMs will increase the share of business of such Tier 1 vendors. We are already Tier 1 supplier to major OEMs and are confident of increasing our wallet share with these OEMs as well as expanding our customer base to include new customers across geographies.
  • Overall, I am confident that Endurance Technologies will continue on the profitable growth trajectory and generate improved returns on capital even as the Company continues to deleverage and strengthen its balance sheet. The Company is committed to deliver to OEMs Complete Solutions that are Quality-led and Technology-driven.
  • India is increasingly becoming a hub for domestic and global automakers and Indian auto component manufacturers are becoming trusted partners for the supply of crucial automotive components. Availability of skilled and semi-skilled manpower, cost-efficient manufacturing, proven execution capabilities and proximity to some key global markets such as Middle- East and Europe has helped Indian auto component industry to grow at a compounded annualised rate of 14% over the last one decade. India is also turning out to be a global hub of automotive companies for Research and Development (R&D) activities too.
  • Intense competition in the two-wheelers market has made cost-rationalisation imperative for OEMs while consistently working to enhance product quality to meet the pressure of growing consumer expectations. Consequently, OEMs have become more cautious and demanding about the quality of auto components used in vehicle manufacturing and prefer to procure more components from fewer cost-effective vendors, if they match quality requirements. Endurance Technologies, being one of the top two suppliers across all its product segments, expects to benefit from this trend that will help to increase the content supplied per vehicle.
  • The Company has a robust capital expenditure plan to ensure that additional capacities required for incremental revenues come up at greenfield and brownfield locations in India and Europe. In India, new plants are being set up in Halol, Gujarat and Malur Taluka, Kolar District, Karnataka. Further, additional land has been acquired for expansion at Sanand and Chennai, closer to its existing manufacturing facilities.
  • Better prospects for India’s automotive market has made competition among component- makers more intense. Endurance Technologies is partially shielded from the competition because of its long-standing partnerships with esteemed customers. Besides, its diversification across geographies and product categories may help the Company tackle intense competition effectively. Moreover, the Company’s technological superiority and proven execution track-record of new projects and initiatives, provides it an edge over its competitors.

 

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