Today's Top Gainer
Note:Top Gainer - Nifty 50 More
Autoriders International Limited, a well stablished company in travel & tourism, celebrating Silver Jubilee year this year (1994-2019) endeavor to enhance its position in the industry by constantly improving its service quality through upgrading its products and technology and its human resources with a view to create value for its customers and stakeholders.
The company achieved Gross Revenue of over Rupees 66 crores and posted profits for the year. The company is looking at various revenue enhancement and cost containment measures so as to improve its profit.
1. Industry Structure and Development
India offers a very large market for Travel & Tourism Industry with diverse portfolio of products which include medical, wellness, adventure, eco-tourism, and rural and religious tourism for domestic and international tourists. Travel and Tourism is a major foreign exchange earner for India. The domestic tourism is on a growth path due to the increasing middle class and disposable income.
Corporate car rental market in India has been growing at a moderate rate over the past years and is expected to sustain marginal growth. The main factors for growth have been strong tie ups, fixed and long term rentals, leasing and use of online and mobile applications.
Huge investment is being made in technology in deployment and modernization of front and back systems for the development, implementation and execution of strategies and programs capable of delivering operational efficiency, reducing expenses and increasing revenue. The market size of Radio taxi and self-drive models are expected to witness huge investment and growth.
2. Opportunities & Outlook
The car rental industry has been fast evolving with introduction of new business models with advanced technology applications and its integration. Exponential growth is expected for Self Drive and car sharing business in the coming years. Also due to strict emission standards, the introduction of electric cars would further enhance the business opportunities. By competitive fleet management with introduction of new fleet reflecting the current and future market trends and process and system integration, company is hopeful of improving its business in terms of revenue and margins.
3. Threats, Risk and Concerns
The company encounter competition from aggregators entering into corporate sector with low rate of app based service delivery. The company is confident of encountering such situation with its several years of customer relations and service delivery.
The increase in competition and the input costs could put pressure on the margin. However the company can manage by taking appropriate measures of monitoring and evaluating various aspects in operations and management, receivable management, human resources and other functional areas which have a direct bearing.
4. Internal Control Systems
The Company has an internal control system in place which is commensurate with the size and nature of its business. The internal control system ensures that all the assets of the Company are safeguarded from loss, damage or disposition. Checks and controls are in place to ensure that transactions are adequately authorized and recorded and that they are reported correctly. The internal control system is supplemented by an extensive programme of internal audit by a firm of independent Chartered Accountants and external statutory audit which is periodically reviewed by the management and Audit Committee.
The Audit Committee of the Board regularly reviews compliance with the Companys policies, procedures and statutory requirements in consultation with the Statutory Auditors and the Internal Auditors, who also attend the Audit Committee meetings.
5. Financial Performance with respect to Operational Performance
Sales and Profit:
During the year Gross Sales has increased by 2% and an increase in profit 417% was seen in the Net profit. Capital Investment: Capital Investment of र 8.14 Crores were made during the year. The entire capital investment has been made out of financial assistance from Toyota Financial Services Ltd. and HDFC Bank.
6. Human Resources and Industrial Relations
The Companys HR philosophy is to establish and build a high performing organization, where each individual is motivated to perform to the fullest capacity: to contribute to developing and achieving individual excellence and departmental objectives and continuously improve performance to realize the full potential of our personnel. Industrial relations were cordial and harmonious throughout the year.
7. Cautionary Statement
Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectation are "forward looking statement" within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.
|By order of the Board,|
|For AUTORIDERS INTERNATIONAL LIMITED,|
|Place: Mumbai||TAPAN PATEL|
|Date: 30th May, 2019||Managing Director &CEO|