SWARAJ AUTOMOTIVES LIMITED

 

ANNUAL GENERAL MEETING OF SHAREHOLDERS

7th JULY, 2008

 

CHAIRMAN’S SPEECH

 

Dear Friends,

 

A very good morning to all of you.

 

I am pleased to extend a very warm welcome to all of you on this 33rd Annual General Meeting of your Company.

 

The quorum being present, I would like to call the Meeting to order.

 

The Notice convening the Shareholders Meeting and the Annual Report for the year ended 31st March, 2008 have been with you for sometime.  I believe you would have had the time to go through them.  With your permission, I shall take them as read.

 

YEAR IN REVIEW

 

As you would have noted from the Annual Report, your Company has posted encouraging results during the financial year 2007-08.  Net revenue for the year was Rs.67.7 crores against Rs.57.1 crores, reflecting a growth of 19% over the previous year.  On the strength of revenue growth and various cost control / reduction initiatives, Profit Before Tax was Rs.8.2 crores against  Rs.5.2 crores for the previous year, an increase of 57%.  This growth was accompanied with an improved margin – 12.2%, compared to 9.2% in the previous year.  Profit After Tax for the year was Rs.5.4 crores which translated into an earning per share of Rs.22.50 against Rs.14.20 in the previous year.

 

Overall, your Company has delivered superior financial performance during the year and your Directors have recommended an enhanced dividend of 30%.  I am sure Members will be pleased with this step up in dividend, which represents the highest rate since the inception of the Company.

 

CURRENT PERFORMANCE

 

I am happy to inform that the Company has started the current financial year 2008-09 on a positive note.  Net revenue for the first three months period April – June 2008 has grown by 16% to reach Rs. 18.47 crores as against           Rs. 15.87 crores for the corresponding period last year.  I would further like to add that the management of your Company plans to continue give importance to improve business performance through cost reduction and up-gradation of the manufacturing processes and practices, by value engineering and enhancing productivity.

 

FUTURE

 

The increasing demand from domestic and international auto companies has seen auto components manufacturing sector emerge as one of the fastest growing sectors in India and globally.

 

The Indian auto components manufacturing industry has registered handsome growth in the recent past and as per estimates of the Automotive Component Manufacturers’ Association of India (ACMA), this sector is set to grow at CAGR of 15% till fiscal 2012.  In the context of the very large size of the auto components market in India and in overseas markets, there are possibilities for SAL to venture into new areas.  These may require enhancement of capabilities as well as some capital investment.  In addition, we will also be looking at possible strategic alliances with other, larger auto component companies.  Through these measures, we hope to continue to add to shareholder value in the future.

 

ACKNOWLEDGEMENTS

 

I would like to take this opportunity to express our deep sense of appreciation to all those associated with our enterprise in various capacities – customers, vendors, employees and shareholders.  I would like to convey our sincere thanks to the various authorities in the State Government, Bankers etc. for their cooperation.  I would also like to express my gratitude to our Board of Directors for their support and guidance.  The Company’s Board has been strengthened with the induction of Shri V .S. Parthasarathy who brings with him rich and diverse experience.

 

I would now commend for your consideration and adoption the Directors’ Report and Accounts for the year ended 31st March, 2008.

 

 

Anjanikumar Choudhari

Chairman

 

 

Note : This does not purport to be a record of the proceedings of the Annual General Meeting.