Today's Top Gainer
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Autoriders International Limited, a well stablished company in travel & tourism, strive to consolidate its position in the industry by leveraging its service quality through upgrading its product and technology innovation and enhancing Its peoples capabilities with a view to create value for its customers and stakeholders.
The company achieved gross revenue of over Rupees 65 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
The Travel & Tourism Industry is one of the highest growing tourist economies in the world with noticeable growth in Foreign Tourist Arrivals. The domestic tourism is on a growth path due to the increasing middle class and disposable income.
Indian car rental market has been growing at a moderate rate over the past years andwill remain so. The drivers of growth have been urbanization and convenience of the middleclass population and use of internet and mobile applications.
There has been huge investment in technology based operators with increasing penetration of internet which resulted in considerable growth in this segment. The market size of Radio taxi is expected to witness huge investment and growth.
2. Opportunities & Outlook
The car rental industry has been experiencing major transformation over the past few years with a shift in service concept by use of technology applications and its integration. It is expected that the business is poised for sustained growth in the ensuing years. By fleet upgradation and improvement in operations by system integration, company is hopeful of scaling up of its business in terms of revenue and margins.
Though the Self-drive services have not gained momentum, the company is hopeful of its presence felt in the segment in the coming years.
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. Impact of Goods and Services Tax (GST)
The Goods and Service Tax (GST) was introduced by the Government during the year. Though GST rate on car rental services have been kept at the same level, GST on input goods and services have negatively impacted the margins of the company.
5. 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.
6. Financial Performance with respect to Operational Performance
Sales and Profit:
During the year Gross Sales has increased by 7.93% and a decrease of 82.35% was seen in the Net profit due to high operating costs.
Capital Investment of ? 6.26 Crores were made during the year. The entire capital investment has been made out of financial assistance from Alphera Financial Services and Toyota Financial Services Ltd.
7. 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.
8. 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 Date: 30th May, 2018