Dear Shareholders,

Industrial Landscape

When it comes to the Automotive industry, the technology landscape is fast-changing, requiring the evolution and adoption of information and communication-related technologies at an extremely rapid speed. The transition to electric mobility, energy efficiency, light-weighting of vehicles and alternate fuel usage are some of the outcomes of the emerging trends. This calls for technological upgradations across the sector to keep up with evolving demands and dynamic market needs. Our teams and technology partners help us design innovative solutions to offer localized customer solutions for the Indian market. And so we believe, our future partners must be experts in their respective field of technology with a history of innovation and product leadership. This is important to enable us to offer advanced products and solutions.

Financial Performance

The Company continues to sustain its market leadership basis healthy segmental diversity, diversified product portfolio and established relationships with its clientele. The Company achieved the highest ever revenue and profit in FY 2021-22, benefiting from healthy growth in the after market business and change in product mix, the operating margin looks promising over the medium term. We will continue to maintain a balanced financial risk profile and liquidity to remain healthy, backed by a lean balance sheet over the years, and prudent funding of capex and working capital requirements.

The Company is well-positioned to capture the growing market opportunities with the help of a diverse basket of products and capabilities to serve Indian OEMs better. We constantly thrive on building possibilities and achieving operational excellence.

Operational Highlights

We appreciate and thank the Government for introducing the Production Linked Incentive (PLI) scheme for the auto and auto component players. The massive pace of technological progress in the Auto industry today, with greater impetus on localization through the PLI Scheme provides us incredible opportunities and visibility to move ahead in this journey. We have been engaging in consistent innovation across our product line with our diverse JV partners. We are happy to announce that Lumax Auto Technologies has received approval from the Government of India for the PLI scheme in collaboration with its various joint venture partners

The JV announced in the year, with Alps Alpine, Japan will set the tone to focus on manufacturing electric devices and components. This strengthens our position in the industry with the diversification of our product portfolio.

Response to Covid-19

We have witnessed several industries and geographies coming to a standstill during these testing times. However, at LATL, we approached the pandemic hands-on and successfully mitigated the impacts of Covid-19 throughout the organization. Regular sanitization at the workplace, Covid-19 awareness programs, coupled with mental health drives, enabled us to mitigate the pandemic-incurred risks. We feel our constant endeavour in fighting the pandemic and supporting our stakeholders has bolstered our value creation process.

We truly believe that our workforce is our biggest asset. Therefore, we prioritized our people’s health and safety during the discourse of the pandemic. We established quarantine centers at various plant locations, fully equipped with oxygen concentrators, ambulance services and basic medical support facility, including a 24 x 7 doctor. We also began a workforce vaccination drive in April 2021 at our facilities. As on date, a total of 17 camps were organized and close to 3,000+ employees have been vaccinated to date.

Future Strategies

At Lumax, we are poised to capture the growing market opportunities through a systematic and customer-first approach. The addition of our new subsidiary is in alignment with our vision to establish reliance on technology along with the support of our business partners. We shall continue to put in the best possible efforts to hold our long-standing reputation for leadership, trust, and integrity. Further, we plan to add value for our clients through consistent innovation and improvement.

Outlook

Increasing offtake from automobile Original Equipment Manufacturers (OEMs), on the back of an improving demand scenario, including pent-up demand, strong after market demand, and increased wallet share with its major customers, will be the growth catalyst for us. The increasing demand for safety, emission, comfort requirements in automobiles is paving the way ahead for companies focused on supplying import-substitute products to the Indian markets

These partnerships with global leaders are strengthening our core businesses and enhancing our diversified product offerings by leveraging global technologies. LATL is prepared for the coming times, basis a well-positioned market standing and capabilities today. We have the best combination of new products and an expanding wallet share with the current product line. All these endeavors are aimed to serve our customers and their expectations diligently while also pursuing our purpose of a multifold growth in terms of the revenue trajectory.

Vote of Thanks

We have good momentum coming into FY 2022-23 and are confident that we will continue to execute in line with our strategy. We also remain cognizant of the potential impact that further Covid-19 related, geopolitical tensions, among other uncertainties and disruptions can have on us and the overall industry.

We take this opportunity to extend our gratitude to all our colleagues. We thank them for the incredible dedication and care they have shown to our customers and each other over the past year. Their tremendous efforts have, above everything else, made us what we are today and will continue shaping our tomorrow.

Warm Regards,

DK Jain Anmol Jain Deepak Jain