JTEKT India Limited (Formerly Sona Koyo Steering Systems Ltd.) Business Report FY ended Mar. 2018

Financial Overview

(in million INR)

 

FY ended Mar. 31, 2018

FY ended Mar. 31, 2017

Rate of change (%)

Factors

Net Sales

12,959.2

13,814.4

(6.4)

 

Profit before tax

762

559

36.3

Continuous improvement in material cost as well as decline in the fixed costs 

 
Factors

-The Company's sales revenue for the fiscal year ended March 31, 2018 decreased by 6.4% from the previous fiscal year to INR 12,959.2 million. Profit before tax increased by 36.3% due to continuous improvement in material costs as well as a decline in fixed costs.
-The Company operates primarily in the Indian market. The Company's yearly exports have consistently amounted to less than 10% of its total sales turnover.

 

Activity of Subsidiaries

JTEKT Sona Automotive India Limited (JSAI)

-In the fiscal year ended March 31, 2018, JSAI began production of C-EPS for the Toyota Yaris. It also established a System Durability Testing Machine and proto production capability as well as a volume production line for the mass market.

-JSAI received a Zero PPM Award’ from Toyota Kirloskar Motor Limited and winner of ‘‘Quality Circle Competition’ conducted by Honda Cars India Limited for all of its suppliers in India. It also received the Global Safety Excellence Award from JTEKT Corporation, Japan among all JTEKT companies worldwide.


Sona Fuji Kiko Automotive Limited (SFAL)

-In the fiscal year ended March 31, 2018, SFAL began production of of Jacket Column assembly for the Toyota Yaris.

 

Recent Developments

-During the fiscal year ended March 31, 2017, the Company made additional investments to add one more PDC machine of 850 tonnes, the company now has a total of seven PDC machines and the plant is operating at a capacity utilization of more than 85%.

-Capacity utilization based on product line (FY ended Mar. 31, 2018)
Product line Capacity utilization (%)
Steering components 61
Driveline components 45

 

Contracts

-During the fiscal year ended March 31, 2018, the company has participated in parts development of Toyota Yaris.
-During the fiscal year ended March 31, 2017, The Company participated in development of the Nissan New Micra, the Honda WR-V, and the Maruti Suzuki Ignis.

 

Awards

-During the fiscal year ended March 31, 2018, JTEKT India Limited was recognized by Toyota Kirloskar Motor Pvt. Ltd. for achieving the supply of zero defect product, the best Gemba Improvement Activity, and achieving targets in the category of Quality, and achieving targets in the category of Delivery.

-Japan Institute of Plant Maintenance (JIPM) has recognized the Company with an award for TPM excellence, ‘Category A’.

-JSAI received the Zero PPM Award from Toyota Kirloskar Motor Limited.

-JSAI won the Quality Circle Competition conducted by Honda Cars India Limited.

 

R&D Expenditure

(in million INR)
  FY ended Mar. 31,
2018
FY ended Mar. 31,
2017
FY ended Mar. 31,
2016
Overall 20.2 23.2 27.6

-The Company was engaged in the following automotive research and development activities during the fiscal year ended March 31, 2018:

  • Research and Development work for 'speed sensitive steering-assist with CAN interface' for off-highway vehicles was completed.
  • Developing prototype of electric power steering based on brushless motor for off-road vehicles.
  • Development of cost effective EPAS technologies for off-road vehicle applications with advanced safety features is in progress.

Capital Expenditures

(in million INR)

  FY ended Mar. 31,
2018
FY ended Mar. 31,
2017
FY ended Mar. 31,
2016
Sona Koyo Steering Systems Ltd. 366
673
806

-Capital expenditures for the fiscal year ended March 31, 2018 were used to reduce external debt, resulting in an improvement in the Debt Equity ratio from 0.82 in FY17 to 0.72 in FY18.

-Capital expenditures for the fiscal year ended March 31, 2017 were invested primarily into new product development, the purchase of an 850 ton PDC machine, and to acquire new technology for the manufacturing of Intermediate Shafts (IMS) from KMI Japan.

 

Investments in India

-During the fiscal year ended March 31, 2018, JTEKT Sona Automotive India Limited (JSAI) established a System Durability Testing Machine and ECU Software Re-flashing capabilities and enhanced capabilities for proto parts development in India. It also established New Future Technology of ABLS (Anti Back Lash Steering) type C-EPS for one of the models of Maruti Suzuki.

-The Company has invested in approximately 30 acres of land in Gujarat to be closer to customers as most of the Company’s automotive customers are expanding in the state of Gujarat. The land is ideally located on the main SH-7 highway and is approximately 12 km from the Suzuki plant and 6 km from the Honda plant.