JTEKT India Limited (Formerly Sona Koyo Steering Systems Ltd.) Business Report FY ended Mar. 2020

Financial Overview

(in million INR)

	FY ended Mar. 31, 2020	FY ended Mar. 31, 2019	Rate of change (%)	Factors
Net Sales	15,193.5	17,656.1	(13.9)	-The decline in sales corresponds to the overall decline in Auto sector
Profit before tax	429.6	1,217.9	(64.7)	-The decline in profit margin due to a decline in sales volumes

Business Restructuring

-During the financial result FY 2019-20, JTEKT India announced that its sheet metal unit was merged with the Aluminium die-casting unit as an integrative initiative, under manufacturing rationalization. Since both the facilities were producing parts mainly for captive consumption, the combining of these manufacturing facilities has brought synergies of operations and helped in optimising costs in various areas of business operations including logistics, compliances, administration, and all other operations.

Activity of Subsidiaries

JTEKT Fuji Kiko Automotive India Limited (‘JFIN’) (formerly known as Sona Fuji Kiko Automotive Limited)
-During the FY 2019-20, this subsidiary’s revenue decreased by 3% to reach INR 1,000 million. Despite severe stress in the Auto sector, it continued to work with better capacity utilization to reduce the negative impact on profitability. It also achieved a 100% OTIF (On Time in Full) delivery track record and accomplished a smooth start of production of Jacket Column Assembly for MSIL Xpresso.

JTEKT India Limited (Formerly known as Sona Koyo Steering Systems Ltd.)
-Manufactures Rack and Pinion Steering systems for manual, Hydraulic Power Steering, Driveline products & Others.

JTEKT SONA Automotive India Limited
-Manufactures Column type Electric Power Steering which is a next generation technology for Automobiles.

Sona Fuji Kiko Automotive Limited
-Manufactures Jacket Assembly for CEPS and Manual Columns.

Koyo Bearing India Private Limited
-Manufactures Hub, Tapered Roller Bearings and Single Ball Bearings.

Toyoda Micromatic Machinery India Ltd.
-Provides Sales and Service for machine tools.

Contracts

-During the fiscal year ended March 31, 2020, JTEKT Fuji Kiko Automotive India Limited started production of Jacket Column Assembly for MSIL Xpresso.

Awards

-During the fiscal year ended March 31, 2020, JTEKT India received acclamation from Fiat India Automobiles India Pvt. Ltd. by achieving ‘Zero PPM and Zero Warranty’, from Toyota for achieving ‘Zero PPM and meeting Safety, Quality & Delivery targets’ and from Isuzu Motors India by achieving ‘Best Delivery Performance’.

R&D Expenditure

(in million INR)

	FY ended Mar. 31, 2020	FY ended Mar. 31, 2019	FY ended Mar. 31, 2018
Overall	7.6	19.1	18.8

-The Company was engaged in the following automotive research and development activities during the fiscal year ended March 31, 2020:

Development of Rack & Pinion Steering gear with additional feature for elimination of stopper hitting noise for high end vehicle. This hitting Noise generated in conventional design at the end of stroke while turning to extreme left and right turn
Development of Collapsible extension shaft on Pinion for R&P HPS Gear
Design and Development of High Strength R&P MS Gear by strengthening of Rack bar with Heat treatment process keeping same diameter from current level
Development of extended length tilt column with 3 Universal Joint System for utility vehicle
Development of Low load guided column for Utility vehicle
Developing sliding sleeve for resin type of design for commercial EPS application
Developing multiplate friction mechanism for Manual Steering Column for increasing the Tilt Retention
Developing of low cost low noise Manual steering gear
Locally designed and developed Proto ECU for the passenger car segment

Capital Expenditures

(in million INR)

	FY ended Mar. 31, 2020	FY ended Mar. 31, 2019	FY ended Mar. 31, 2018
Sona Koyo Steering Systems Ltd.	331	693	589

Investments in India

-During the fiscal year ended March 31, 2020, JTEKT India announced the completion of Phase-1, out of a total of 3 phases, of its Technical Center expansion, involving setting up of a state-of-the-art component testing facility. Phase-2 is underway. During Phase-1, it has consolidated and enhanced the testing facilities to validate its core products.