Dynamatic Technologies Ltd Management Discussions.


Incorporated in 1973, Dynamatic Technologies Limited (Dynamatic Technologies or the Company) is a manufacturer of highly engineered, mission critical products for the Aerospace, Automotive and Hydraulic industries. With futuristic design, engineering and manufacturing facilities in Europe and India, Dynamatic Technologies serves customers across six continents.

The Company is one of the worlds largest manufacturers of hydraulic gear pumps and automotive turbochargers and has held the leadership position in hydraulic gear pumps market for over 46 years. Dynamatic Hydraulics has approximately 75% share of the Indian OEM tractor market and about 35% of the global tractor market. Dynamatic Technologies is a pioneer and leader, amongst the private sector, in both India and the UK, for the manufacture of precision flight critical, and complex airframe structures and aerospace components. It is a Ter-I supplier to the global aerospace OEMs and Primes such as Airbus, Boeing, BEL, Bell Helicopters, Dassault Aviation, Hindustan Aeronautics Limited and Spirit Aerosystems. The Company also manufactures high precision, complex metallurgical ferrous for performance critical components such as turbochargers and exhaust manifolds and has advanced design and development capabilities to support the OEM needs.

Dynamatic Technologies facilities globally spread across in India (Bengaluru, Coimbatore), United Kingdom (Swindon, Bristol) and Germany (Schwarzenberg), are environmentally sensitive - Green, lean, clean and aligned to our vision of CARE. The Company is vertically integrated, with its own alloy-making and casting capabilities as well as its own captive green energy sources.

Dynamatic Technologies operates in three business segments: Hydraulics, Aerospace & Defence and Automotive & Metallurgy.

Dynamatic Hydraulics is one of the worlds largest Hydraulic Gear Products manufacturer with three state-of-the- art manufacturing facilities located in India and a facility each in the UK and Milwaukee, USA. This business unit manufactures hydraulic gear pumps in both aluminium and cast-iron in multiple frame sizes. Range of products include high efficiency gear pumps, low torque high speed hydraulic motors, plunger hand pumps, hitch control valves, rock shaft assemblies, power steering valves and mobile control valves for global construction equipment OEMs. It also commands a strong market share on most of these products. The business unit also manufactures bespoke, very high flow scavenging and lubes oil pumps, and water pumps for high horsepower engines, which find applications on off-highway vehicles, marine and offshore equipment. The Company also designs and builds customized hydraulic solutions, from simple hydraulic pumping units to complex marine power packs, aircraft ground support systems to turnkey

industrial installations. The division is equipped with advanced innovation and development centers in Bengaluru (India) and Swindon (UK) and holds several patents to its credit. With a rich experience, application engineering and rapid prototyping capabilities, Dynamatic Hydraulics can develop bespoke solutions for OEMs in quick time.

Aerospace & Defence: Dynamatic-Oldland Aerospace (DOA) is a pioneer and leader in the Indian private sector for the manufacture of high precision airframe and aerospace components. The Company has large infrastructure which is currently catering to the needs of global OEMs such as Airbus, Boeing, Bell Helicopters and domestically working with defence PSUs such as HAL and BEL. The products include control surfaces such as wing, ailerons and wing flaps, fuselages, and other key flight critical airframe structures such as flap track beams. The Aerospace Division has developed excellent capabilities in automated robotic machining, 5 axis components in aluminium, steel and titanium. The Company also has expertise in tooling capabilities.

The Automotive & Metallurgy division supplies performance critical automotive parts for global passenger car and commercial vehicle manufacturers. It produces high precision, complex metallurgical ferrous castings for turbochargers, engine, brakes, transmission, and chassis applications. The Company possesses state-of-the-art manufacturing facility in Germany. Dynamatic can vertically integrate the competence and locational advantages of its facilities to deliver greater value to its customers.


With three design laboratories across India and Europe, Dynamatic Technologies is a leading private R&D organization, with several inventions and patents to its credit. The Company has defined an Intellectual Property (IP) strategy to build an effective portfolio for future monetization, collaboration and risk mitigation, focusing on future technologies and sustainability.

The Company owns 21 patents in various countries including India, USA, UK, Germany, and other European countries. There are few patent applications pending for registration. Besides the patents mentioned above, the Company has registered 8 trademarks and applied for multiple others in various countries including India, the USA and UK. Dynamatic employs over 90 scientists and 600 engineers and technicians with expertise in Product Design and Validation, Simulation, Application Engineering, Mechanical Engineering, Advanced Computer Aided Engineering, Computer Aided Manufacture, Materials & Metallurgical Engineering, Fluid Dynamics and Defence & Aerospace Research. The state-of-the-art JKM Science Center brings together Design Engineering, Development, Prototyping, Metallurgical and Manufacturing Infrastructure enabling the Company to comprehensively address the needs of its global customers.

The Dynamatic Hydraulics Research Laboratory in Swindon, UK, has advanced design knowledge, focused on the Mobile Hydraulics, best-in-class engineering capabilities and intellectual property with several patented products and designs. This facility provides testing and validation of new products for various OEM customers.


2020 was an unprecedented year as the world witnessed the COVID-19 pandemic. With social distancing being the only tool to combat the virus during the initial part of the year, the global economy saw a widespread lockdown in several countries. These lockdowns brought economic activity to a complete halt and severely impacted consumer sentiments which resulted in the contraction of the global economy by 3.3% during the year. New virus mutations and the second and third infection wave has still put an uncertainty on the recovery prospects of several developed and emerging nations. Most of the countries have launched nation-wide vaccination initiatives to thwart the spread of the virus. The increased pace of the vaccination drive is anticipated to provide some relief to the economic activity in 2021. In addition, swift policy response from central banks across countries has ensured the flow of credit in the form of relief packages through cash transfers and subsidies. The accommodative monetary policies have ensured excess liquidity in the market to support growth. The combination of gradual easing of lockdowns, mass vaccination drives and accommodative monetary policies are anticipated to support the global economic recovery. As per International Monetary Fund (IMF), the global economy is anticipated to grow at 6.0% in 2021 on the back of low base and various initiatives by respective countries. This growth momentum is expected to continue in 2022 with a growth of 4.4%. The advanced economies are projected to grow at 5.1% in 2021 and 3.6% in 2022 whereas, the emerging economies are expected to post a growth rate of 6.7% in 2021 and 5.0% in 2022, respectively. [Source: IMF World Economic Outlook April 2021]


Indian economy was already struggling in 2019 on account of various internal and external factors. The situation was further aggravated in 2020 on account of the pandemic related national lockdown. During 2020 the Indian economy contracted by around 8.0%. The economic activity in first half of the year was severely impacted by the pandemic. However, during the later part with gradual opening of the economy, Indian economy registered a strong recovery which helped in limiting the annual contraction. The economy experienced V-shaped recovery driven by growth in demand for consumer durable goods especially in auto sector, retail goods and revival of several infrastructure projects by the government. India is expected to grow at 12.5% in 2021 and reclaim the fastest growing economy status on account of low base effect and continued economic recovery boosted by increased public investment. The growth is anticipated to moderate at around 6.9% in 2022 due to the disappearing of base effect. The increasing FPI inflows and improvement

in Balance of Payments (BoP) is expected to further support the Indian economy. Though, there are still uncertainty in the overall recovery of Indian economy in the near term due to the second phase of the Covid-19 but the situation seems to be improving. Furthermore, continued public investment, accelerated vaccine roll-out and surge in domestic demand is anticipated to support the growth forecast for the current year. The expectation of near normal monsoon for the third consecutive year is also likely to help in recovery as India is a net exporter of agricultural produce. [Source: IMF World Economic Outlook April 2021]


Dynamatic Hydraulics is one of the worlds largest manufacturers of hydraulic geared products with state-of-the- art manufacturing facilities located in India, the UK and the USA. This division manufactures widest range of hydraulic gear pumps in aluminium and cast iron construction, different frame sizes, pressure and flow ratings and designed bespoke for each application, high speed low torque motors, hand pumps, hitch control valves, rock shaft assemblies, lube and water pumps, mobile control valves, orbitrols and complete hydraulic solutions for the Indian and overseas markets.

Industry Overview and Outlook:

Farm Mechanisation:

The domestic tractor industry in India experienced an unprecedented demand in FY21 after a dull Q1 which was impacted due to complete lockdown for almost the entire period. Q2 witnessed a spurt in demand, largely driven by low base and low inventory owing to a dull 2020 and helped by Government of Indias proactive measures to boost the Farm Sector. The period also saw good growth in power steering tractors. This was a period when the supply chain eco-system in India was still limping, migrant labour still unavailable (as most of them had moved on to their respective home towns during the lockdown) and the work force availability impacted further due to infections driven quarantine.

Q3 & Q4 witnessed continued increase in demand for the tractors and industry ended up with positive double digit growth YOY.

The projections for FY22 remain strong though industry may witness high single digit growth only. One hopes that we would witness a good Monsoon and Covid Wave 2 & Wave 3 impact will be insignificant.

India holds the second largest agricultural land in the world and is the biggest market for tractors in the Asia-Pacific region. The Government of India has recently introduced new farm laws which is anticipated to further improve the average rural households disposable income in the medium to long-term. The Indian Meteorological Department (IMT) has predicted a near normal monsoon in 2021 for the third consecutive year. The combination of all these factors is anticipated to continue driving the demand for tractors and other agri-machineries in FY2022.

Construction and Material Handling:

The construction and off-highway vehicles sector experienced a muted performance in Q1 and a good portion of Q2.This was again due to lockdowns in Q1 and its impact on supply chain and labour availability extending to a large part of Q2 as well. The industry witnessed a growth in demand from end October and the trend sustained till Q4 (February).

The Indian budget has been infrastructure focused with significant investments planned in projects like highways, renewable energy and urban transport which is expected to drive demand for construction equipment and building materials. The Government has already allocated USD 24.27 billion and USD 6.85 billion towards transport infrastructure and housing and urban development sector in the Union Budget 2020-21. In addition, policy support such as Housing for All, Smart City Mission and 100% FDI through automatic route in infrastructure are expected to further contribute to the growth in this sector.

Segment Overview:

Dynamatic Hydraulic manufactures high precision hydraulic aggregates for tractors, construction equipment, material handling and machine tool industries. The Company has three state-of-the-art manufacturing facilities at Bengaluru for Geared Products- Pumps and Motors, Integrated Hydraulic solutions like hitch control valves, Rockshaft Assemblies and Power Units for defence applications. This manufacturing facility is supported by the Department of Scientific and Industrial Research (DSIR) approved design, R&D center and a rapid prototyping laboratory.

The Company continues to enjoy a leading market share of approximately 75% in the organized Indian tractor industry and is the partner of choice for almost all the tractor OEMs globally. Dynamatic Technologies also designs and builds hydraulic hitch control valve with draft control and complete rockshaft assembly for the agricultural tractors.

The demand for equipment with higher horsepower (i.e. over 50 HP) is expected to continue to grow faster than the industry both in the domestic market as well as internationally. Dynamatic Technologies is strategically positioned to cater to this market sector with highest installed capacity in India to produce tandem pumps. The tractor industry in India is expected to grow with current farm mechanisation levels only at around 50% as compared to Europe or America where the mechanisation levels are to the tune of 85%. This local demand will continue to drive growth for Dynamatic Technologies, from the local tractor manufacturing companies in India.

There is also an increasing global demand for mid HP tractors (up to 75 HP) that most Indian tractor companies are manufacturing. Current levels of exports stand at meagre 10%, which in next 5 years is expected to rise to over 25%. The growth for Dynamatic Technologies will be driven not just by the domestic demand but also by the demand for domestic tractors in global markets.

The Company is also increasing its share of business with all tractor manufacturing OEMs which will further aid future growth. While continuing to consolidate its market leadership position in agriculture sector and given the growth potential in the construction equipment sector. Dynamatic Technologies is investing in the development of high pressure, heavy-duty cast iron pumps to cater to the construction equipment sector. These products are in various stages of development and testing, which will cater to the global OEMs. The Company has already developed hydro motors for this sector, which are currently undergoing trials with various global OEMs. The Company has also integrated its supply chain into a global supply chain for hydraulics which provides the Company with better bargaining capabilities and enables it to keep its costs competitive.

Operational and Financial Performance

Particulars FY2021 FY2020 Change(%)
Revenue 29,763 29,500 0.9%
EBITDA 3,109 2,286 36.0%
Margin % 10.4% 7.7%

The performance of the Hydraulics segment was severely impacted in the first half of the year due to global slowdown and pandemic related lockdowns. However, in H2 FY2021 the demand increased significantly, resulting in moderate growth in revenue coupled with significant improvement in profitability for the year. The margin enhancement was driven by strong demand across our product portfolio coupled with better product mix. In addition, various cost optimization measures were implemented.

Dynamatic Hydraulics, Swindon, UK, had a flat 2021 with revenue numbers 9.33 Million Pounds, sliding below 2020 numbers of 9.57 million pounds. This was largely due to impact of Covid-19 and the disruptions in global supply chain ecosystem caused by the pandemic.

Looking forward, 2022 will witness a reasonable growth with tractor industry volumes picking up in USA and the start of production for one of our largest projects in hydraulics in recent times. We are hoping that there would be no further disruptions due to Covid-19 and the supply chain ecosystem which has thus far been constrained will be up and running full scale. This would help us lower our turnaround time and boost our revenues. The market for Farm mechanization and construction equipment in Europe and USA looks reasonably buoyant. Covid has not allowed us to switch to India supply chain to the extent planned. We are hoping that we will be able to realise full potential of the supply base developed in India in the year 2022.

In FY21 Dynamatic Hydraulics received the following awards:

Recognised by India 500 Best Brand, CII and ABK-AOTS Dosakai .

DEC 2020: Quality Excellence Award for Best Operational Process" conducted by World Quality congress

FEB 2021: Quality excellence" award organised by India 500 Best Brand

FEB 2021: Winner of RHODIUM Award & PLATINUM Award in SMED Competition organised by ABK - AOTS Dosakai, Chennai

FEB 2021: Gold award in 39th KAI-ZEN Competition organised by CII

APR 2021 : Silver awards[Two] in 8th Poka Yoke Competition organised by CII

JUN 2021: Silver awards[Two] in 40th KAI-ZEN Competition organised by CII


Industry Overview and Outlook:

Defence Aerospace:

Indias defence manufacturing sector has grown at a CAGR of 3.9% between 2016 and 2020. During FY2020 Indian defence production stood at USD 12.9 billion. As per the Defence Production Policy of 2018, India has set a goal of becoming one of the top 5 global producers of the aerospace and defence manufacturing with production target of USD 25 billion by 2025, including annual export target of USD 5 billion. In addition, Defence Acquisition Procedure (DAP) 2020 and Defence Production and Export Promotion Policy (DPEPP) 2020 provides a solid foundation to attract investments and build capabilities for the sector. This policys support coupled with increasing Foreign Direct Investment (FDI) in defence, is anticipated to drive the growth for Indian aerospace and defence industry going forward.

Commercial Aerospace:

Indias civil aviation demand in FY2021 was severely impacted due to pandemic related travel restrictions across the globe. All major airlines have either cancelled or postponed their purchase plans for new aircrafts, which has resulted in significant decline in production forecasts by Airbus and Boeing. However, it is expected to pick-up gradually as the global economies recover from the pandemic and travel restrictions being lifted. The mass vaccination programs being run in advanced and emerging markets will further help the global tourism industry. The aviation sector has been actively adopting strategies like expansion and providing ancillary services to augment value proposition for customers. In addition, capital expenditure by India Government and introduction of various schemes such as Krishi Udaan and UDAN (Ude Desh ka Aam Naagrik) is anticipated to drive the growth of the segment in medium to long term.

Indias passenger traffic stood at 341.05 million in FY2020, however, it came down to only 64.80 million for April 2020 to December 2020 due to the impact of Covid-19 pandemic. The domestic and international passenger traffic had exhibited a CAGR of 12.9% and 5.0% between 2016-2020. The recent opening of Indian economy in the second half of FY2021 has helped domestic passenger traffic to reach 75% of the prepandemic levels. Boeing has forecasted the need of 260 new

wide body aircrafts by Indian carriers to meet the demand for long haul connectivity to Europe and North America. It has also projected a need of over 2,100 new single-aisle aircraft in next 20 years. The freight traffic grew at a CAGR of 5.3% between 2016-2020 and is expected to grow 6.3% annually going forward.

India is expected to surpass the UK and set to become the third largest aviation market in the world by 2024. The government has plans to build 30 airports in northeast India, including an investment of USD 3.58 billion in the next five years to augment facilities and infrastructure at airports. It has also increased the private participation under its Private-Public Partnership (PPP) to develop six airports in major cities. There are also plans to increase the number of operational airports to 190-200 by FY2040. These initiatives are anticipated to drive growth for the commercial aerospace segment as the economy further opens and travel sector resumes normalcy.

Segment Overview:

Dynamatic-Oldland Aerospace, India, is a pioneer and a recognized leader in the Indian private sector for the development of complex aero-structures and the manufacture of aircraft parts and accessories. The Company is also vertically integrated to manufacture CNC and sheet metal components, with soft and hard tooling assembly, jig manufacturing along with comprehensive engineering capabilities. The Aerospace & Defence Division has the largest infrastructure in the Indian private sector for the manufacture of complex aero structures. QMS is AS9100 approved, NADCAP approved for heat treatment, spot welding, non-destructive testing and metrology, the Company is also approved by major OEMs like Airbus, Boeing, Bell Helicopters and Dassault. Further, it also caters to domestic requirements from major OEMs like Bharath Electronics Ltd & HAL. This is the first time such capabilities have been developed in the Indian private sector.

The Companys modern and state-of-the-art manufacturing facilities in India and the UK deliver high value to its customers, by seamless integration of highly skilled workforce in India for assemblies and low cost of capital for manufacturing at UK. The Company has launched Mission Zero as the language of change to drive continuous improvement culture for sustainable growth and increase value to the customers and shareholders.

The Company has delivered over 6,500 aircraft sets till date and is working closely with Spirit Aero Systems for the redesign of the Flap Track Beam with a Monolithic structure. Dynamatic Technologies has successfully associated with Airbus on supplies of A330 program the long-range aircraft variants. The Company is a single source supplier making us the largest flap track beam manufacturer in the world.

In FY2021, the company was recognized for its capabilities from Boeing and was tasked to execute a tooling requirement for Boeing T7A Red Hawk aircraft. The company was able to meet the production requirements in a record time despite the pandemic which was recognised by the leadership at Boeing. To highlight few more accomplishment with Boeing,

Dynamatics was able to successfully complete first articles on P8-Retrofits and industrialize the P8-India Option. These achievements helped us further strengthen our relationship with the Customer.

In FY21 Dynamatic Oldland-Aerospace received industry wide recognition and won a few major awards:

JUN 2020: Won 2 PAR EXCELLENCE and 2 EXCELLENCE Awards in 7th National Conclave on 5S organized by QCFI and got selected for International level competition, which is in Nov21

AUG 2020: Won 2 GOLD Awards in Bangalore Chapter Quality Circle Competition organized QCFI (Virtual)

DEC 2020: DISTINGUISHED in the National Productivity Summit 2020 organized by IMTMA (Virtual)

DEC 2020: Won 1 EXCELLENT Award in the National level Quality Circle Competition organized by QCFI and got selected for International level competition, which is in Nov21

Operational and Financial Performance:

Particulars FY2021 FY2020 Change(%)
Revenue 37,395 49,760 (24.8)%
EBITDA 11,131 15,252 (27.0)%
Margin % 29.8% 30.7%

The performance of the segment was impacted primarily due to travel related restrictions and pandemic. Various travel bans between countries and decline in passenger traffic due to Covid-19 continued to impact the performance of the civil aviation sector. The Company has won orders from the Indian Defence Public Sector Undertakings (PSUs) to mitigate the slowdown in the civil aviation sector. This segment is focused on developing capabilities in large aero-structural assemblies, composites and high precision aero- structure designing and manufacturing.

Dynamatic Homeland Security, offers cutting edge security products and technologies such as unmanned aerial vehicles, mobile surveillance vehicles and comprehensive integrated border management solutions (CIBMS). These solutions are aimed at enhancing the potential customers capabilities in countering modern day security threats. The Company has industrial defence production licenses from the Ministry of Commerce & Industry, Government of India for the manufacture of drones (unmanned aerial systems).

During this year, the Company has entered into two major partnerships with Academia and DRDO. It signed a MOU with Indian Institute of Technology (IIT) Kanpur for design and development of unmanned solutions aimed at surveillance and reconnaissance. The Company has also signed an agreement with Central Scientific Instruments Organisation (CSIO) for advanced optical sensors and payload design and development. The partnerships are aimed at developing indigenous products and solutions for Indian Defence and Paramilitary in line with our Prime Ministers clarion call for self-reliance, Atma Nirbhar Bharat.


Industry Overview and Outlook:

Automobile sales across segments in India, which is the worlds fifth largest market, slipped to a six-year low during FY2021, as per Society of Indian Automobile Manufacturers (SIAM). In addition to the ongoing global pandemic, the sector was also impacted due to a structural slowdown, led by a slew of regulatory changes, coupled with a struggling economy. The five-year (2015-16 to 2020-21) compound annual growth rate (CAGR) of the overall auto industry is now negative at 2%, against 5.7% growth it saw in the previous five years (from 2010-11 to 2015-16). The decadal growth in the auto industry has now slowed from 12.8% to 1.8%, indicating other structural challenges in the sector in addition to the pandemic. Also, there is uncertainty in the value chain owing to shortage of manpower, raw material, and other resources. The manufacturers entered the year with a higher cost structure, lower volumes as the BS-IV models are phased out, and BS-VI models ramped up gradually. Helped by a low base of last year and a strong preference for personal mobility, most passenger vehicle makers experienced strong growth in the Q4 FY2021. The first half of FY2021 saw muted demand due to pandemic related restrictions. As per SIAM, the automobile industry sales volumes declined by around 13.6% to 18.6 million units. The performance of the sector was more severely impacted in initial part of the year on account of nation-wide lockdowns and resulting weak consumer sentiments. However, the demand picked up after the gradual opening of economic activities in the second half of the fiscal year. This sudden spurt in demand in the auto industry has been attributed to both pent-up demand as well as excess liquidity in the market provided by lower interest rates.

Segment Overview:

JKM Ferrotech Ltd, the automotive division of the Company located in Chennai, possesses best in class manufacturing and testing facilities with the capability to produce and supply performance critical automotive components. It produces high quality technology oriented components for engine, brake system, transmission, steering and chassis for Indian and global automotive OEMs like, Hyundai Motors India and Daimler India Commercial Vehicles

During the Financial Year, JFTL received a Binding Term Sheet from Dan Block Brakes India Private Limited, having its registered office at Suite No. 311, Vardhman Diamond Plaza, D.B. Gupta Road, Paharganj, New Delhi - 110 055, India, for acquiring 100% ownership and rights of its Assets.

The Board of JFTL at its meeting held on 1st February 2021, approved the aforesaid proposal and executed an Asset Purchase Agreement (APA) on 7th April 2021.

As of the date of this report, transfer of assets would be effective subject to satisfactory completion of terms & conditions of the Asset Purchase Agreement, on such date as mutually agreed between the parties.

Eisenwerk Erla GmbH, Germany, is a preferred supplier of precision, complex metallurgical products for automotive engines and turbochargers to leading global automotive OEMs including Audi, BMW, Borg Warner Turbo Emission Systems, Daimler, Volkswagen and Rotax and off-high way vehicle majors. Erla is growing in casting parts for Agriculture and Road construction vehicles which are part of re-designing business model. With a history of over 630 years, Eisenwerk Erla possesses one of the finest ferrous foundries in Europe, capable of manufacturing extremely intricate ferrous castings in exotic metallurgy. It also has strong R&D capabilities with patented technologies specific to the automotive industry. Eisenwerk Erla continues to provide access to the latest technology and the European markets, which differentiates us from our peers in this industry. The Companys machining facility is fully robotized which incorporates the latest technological innovations and will allow Eisenwerk Erla to increase its competitiveness in manufacturing high value precision parts of BMW.

Particulars FY21 FY20 Change(%)
Revenue 44,187 43,499 1.6%
EBITDA 1,820 2,970 (38.7)%
Margin % 4.1% 6.8%

Note: Excludes JFTL performance and also prior period numbers are adjusted to ensure comparability.

During the year FY2021, the automotive segment saw a reduction in top line profitability due to Covid-19 pandemic. However, with the Companys continued focus on margin expansion, low margin products rationalisation continued during the year. The Auto industry showed resilience during the second half of the year which supported the moderate top line growth of the segment. Over the longer term, the Company expects to derive further synergies. The shift in production facilities from China to Europe will help improve Companys product base and in turn drive business. Overall, Dynamatic Technologies continues to focus on high margin product mix, ramp-up of existing products, performance- critical components, customer diversification and capacity utilization for this segment.


Dynamatic Technologies being a Tier-I supplier for OEMs has continuously invested in technology to make the business more cost effective and world class. The Companys best practices include implementing lean manufacturing and continuous improvement programs. Dynamatic Technologies has also launched QSP - Quality, Safety & Productivity, as its new business initiative to emphasise these aspects to the customer.

The Company has state-of-the-art rubber press, inspection equipment like CMM and laser tracker, paint booths, high accuracy 5-axis machines which are one of the largest giga milling machines in the country. This giga milling machine comes with a special probing software system enhancing the capability of the machine beyond a CMM.

Dynamatic Technologies has also launched a skill initiative for its direct and indirect work force using a software called CATI (Competency Assessment & Training Identification). The software is designed to map each of the employees skill level and training needs. This in turn enables the management to provide the required training for the work force.

The Company has also established an in-house Skill Development Center to train and mentor new recruits. Having adopted a Government ITI under PPP, Dynamatic Technologies provides training to the students, preparing them to serve in any Aerospace and Defence industry in order to make the Make In India drive a great success.

In November 2019, Airbus Group had conducted an Industrial Process Capability Assessment (IPCA+) on DOA. DOA surpassed this evaluation with a fabulous score of 78.6%, which is the highest score any supplier in the aero- structures portfolio had ever achieved. With this score, DOA remains at the top, amongst the list of aero-structure suppliers in Asia.

Dynamatic-Oldland Aerospace, UK is a demonstrated leader in the development of exacting airframe structures and precision aerospace components. It has two unique state-of- the-art facilities in Bristol and Swindon, possessing complex 5 axis with robotic machining capabilities for the manufacture of aerospace components and tooling. It also offers a fast-track facility, working with all the major primes and manufactures necessary holding fixtures.

Dynamatic Technologies specializes in reverse engineering, fixtures and design manufacturing. This division is a certified supplier to Airbus UK, GKN Aerospace Europe & USA, Spirit Aero Systems, Boeing, Magellan Aerospace, GE Aviation Systems and Leonardo. It is compliant with BSI ISO 9001:2000 and AS 9100 Rev D standards. Dynamatic Technologies has also been accredited with Environmental Management System (EMS) certification under ISO: 14001.

The Aerospace Division has been continuously expanding to build capabilities in large aero-structures and complex engineering both in the UK and India. The Swindon facility has been expanded and now manufactures main landing gear parts and over wing details for the Airbus fleet. The Company is a pioneer in the Indian and UK private sectors, with a demonstrated track record for the manufacture and development of complex aero structures.

Dynamatic Technologies offers its customers a comprehensive solution of high capex, highly skilled multi axis machining from the UK and high value added, highly skilled sheet metal details and assembly from India. This provides customers with offset credits and best value from two cost models.


An analysis of key ratios for the period under review is as follows

Profitability Ratios FY21 FY20 Change % Comments
EBITDA (Consolidated) 14,901 19,076 (21.89%)

Slowdown in civil aviation led to under performance in aerospace segment due to Covid-19 pandemic

EBITDA Margins 13.33% 15.51% 218 bps
Net Profit (Consolidated - from continuing operations) 198 7,356 (97.31%)
Net Profit Margins 0.18% 5.98% 580 bps
Liquidity Ratios FY21 FY20 Change % Comments
Debt Equity 1.6 1.6 -

Impacted due to Covid-19 pandemic

Current Ratio 1.4 1.5 (6.67%)
Interest Coverage Ratio 1.0 1.4 (28.57%)
Return Ratios FY21 FY20 Change % Comments
Return on Net Worth 0.53% 15.80% Not Meaningful

Impacted due to Covid-19 pandemic

Return on Assets 0.14% 3.80% (366 bps)
Return on Capital Employed 8.02% 12.20% (418 bps)
Turnover Ratios FY21 FY20 Change %
Creditors Turnover 2.3 2.2 6.24%
Debtors Turnover 5.2 5.3 (2.58%)
Inventory Turnover 2.2 2.2 -


Year Ended 31st March FY21 FY20 Change (%)
Share Capital 634 634 -
Reserves & Surplus 36,242 36,679 (1%)

As at 31st March 2021, the Company had an authorized share capital of Rs 2,500 lakhs, divided into 2,00,00,000 equity shares of 10/- each and Rs 500 lakhs divided into 5,00,000 redeemable cumulative preference shares of 100/- each. During the year under review, there is no change in the Companys issued, subscribed and paid-up equity share capital.

The Groups Reserves and Surplus were Rs 36,242 lakhs, as on 31st March 2021, and was reduced by Rs 437 lakhs compared to 31st March 2020

The change is attributable to:

Loss recorded during the year (2,187)
Credit balance arising on consolidation 1,873
Total (314)
Other Comprehensive Loss during the year 184
Cross currency reserve (recognised) (307)
Total (123)
Net Comprehensive Loss for the year (437)


Year Ended 31st March FY21 FY20 Change(%)
Long term borrowings* 42,687 38,755 10%
Short term Borrowings 15,054 21,995 (32%)
Total 57,741 60,750 (5%)
Lease Liability* 16,645 13,533 23%
Total 74,386 74,283

* Includes Current Maturities Fixed Assets:

Year Ended 31st March FY21 FY20 Change(%)
Property Plant and Equipment 44,534 58,863 (24%)
Intangible Assets (Inclusive of Goodwill) 12,581 12,058 4%
Capital work in Progress 325 301 8%
Right-of-use assets 13,702 11,723 17%
Total 71,142 82,945

Capital Expenditure:

During the year under review, the Group incurred capital expenditure of 1,591 lakhs for physical infrastructure, 73 lakhs for procurement of intangible assets and 5,995 lakhs towards Right of Use Asset and significant investments have been made in building infrastructure, state-of-the-art machinery, design software, data security, information systems, and design and development activities, for the future benefits of the Company.


The inventories of the Group mainly comprise of raw materials of 7,268 lakhs, work in progress of 12,731 lakhs, finished goods of 1,621 lakhs and, stores and spares of 855 lakhs.


Favourable Government Policies: The Indian Government is focused on transforming India into a manufacturing destination. With this objective, various initiatives such as Make in India, Automotive Mission Plan 2026, and National Electric Mobility Mission Plan (NEMMP) 2020 have been recently launched by the government. These initiatives are anticipated to be beneficial for the manufacturing companies. In addition, the introduction of vehicle scrappage policy in Union Budget 2021-22 is expected to drive demand for new vehicles as the old and unfit vehicles is withdrawn from India roads.

Sourcing Hub: Over the recent years, India has emerged as the global components sourcing hub as the major global OEMs are sourcing components from India for their global operations. Various global Tier-1 suppliers have also announced plans to increase their procurement from India.

Investment in R&D: India is experiencing increased investment in setting-up R&D operations & laboratories to conduct activities such as analysis, simulation & engineering animations. The trend is further supported by the growth of global OEM sourcing from India & increased indigenisation by global OEMs.

Opening of Defense Sector: The Indian Government has increased the FDI limit in defense sector from 49% to 74%, with the objective of enhancing national security, self-sufficiency in product design, increase investments, income and employment. Furthermore, allowing of private participation in the defense sector is anticipated to provide impetus to the indigenous manufacturing in the sector.

Focus on Agriculture Sector and Farmer Income: One of

the key focus area of the Indian Government is agriculture sector. Various initiatives have been undertaken over last few years to enhance productivity, reduce wastages and increase farmers income. All these initiatives coupled with favourable monsoon bodes well for the Tractor and Farm equipment sector.

Strong Technology and Manufacturing Platform:

Dynamatic Technologies is always committed to enhance its existing capabilities and with that focus it has made significant investments, in particular, the Aerospace segment. The Companys performance is expected to benefit from the ramp up in the order book of the Aerospace segment.

Diverse Product Portfolio and End Market Segments:

Dynamatic Technologies product portfolio is diversified across three key business segments, namely Hydraulics, Aerospace and Automotive. This spread ensures that the Company performance is relatively stable and not dependent on any single industry segment. The Company has an optimum mix of high growth and stable end markets.

Regulatory changes: Increased stringency and compliance requirements in regulations related to environment and safety standards are expected to increase cost and complexity for the component manufacturers. With a wide product portfolio and a strong R&D base, Dynamatic Technologies is positioned to capitalise on the industry opportunities. Government investment in the automotive sector and infrastructure development will also help Dynamatic Technologies grow.


Growth in Indian economy: Pandemic induced lockdowns had severely impacted economic activity in the first half of 2020. However, during the second part of the year, the economy experienced a V-shaped recovery. The drivers of growth were mainly the auto sector and retail goods. Various infrastructure projects by the Government have also seen a revival which aided in the growth of the economy. The recent announcements pertaining to increased capital outlay for the defense sector, larger allocation to rural development, infrastructure development and highway construction will prove beneficial to the growth of the Indian economy in the long term.

Competition: The business environment in which the Company operates is highly competitive in nature. In the Auto sector, most OEMs maintain multiple suppliers for their products and do not prefer exclusive contracts. However, Dynamatic Technologies believes that this is not a major concern as they focus on enhancing the quality of the product and ensure customer satisfaction. Furthermore, the longstanding relationship that it has with the global OEMs is an added advantage.

Impact of COVID-19: The outbreak of the COVID-19 virus and the ensuing lockdown imposed across the country led to the standstill of the economy for a major part of FY2021. Towards the later part of the fiscal year, consequent to the gradual opening of economic activity across the nation, the demand had picked up. This was driven mainly by the consumer durables sector and revival of infrastructure activities.

India is currently experiencing a second wave of Covid-19 infections that has halted economic activity. Although there is near term uncertainty, consumer confidence remains positive for the medium to long term. The situation is gradually improving and active cases are declining. With the role out of vaccination, the economy is expected to continue its growth trajectory.

Technological Changes: In todays era, the technology is continuously evolving resulting in smaller lifecycle of the related products. The business segments in which the Company operates are very technology driven and therefore the Companys products also tend to have a shorter life cycle. The Company is aware of the prevailing risk due to technological advancements and has always focused on R&D. Dynamatic Technologies has a dedicated R&D center engaged in design and prototyping of new products, improvement of existing designs and continuous improvement of existing processes. The Company ensures a close working relationship with its customers to understand their evolving needs and focus on providing suitable products to match their expectations and needs.

Foreign Currency Fluctuations: The Company has global operations and given the nature and scale of the business, the Companys operations are exposed to various foreign currencies and related volatilities. The volatility in the foreign exchange rates can impact the financial performance and hence the Company is closely monitoring these risks and adopting appropriate hedges / forward contracts to mitigate such risks, whenever required. In addition, the Company also tries to match the revenue and expenses in the same currency to mitigate cross currency exposure and translations.

Global Macroeconomic Uncertainty: Given the global operations of Dynamatic Technologies, the business operations are dependent on general economic conditions as well as geo-political situations. The global macroeconomic scenario during the year was severely impacted due to the pandemic and the uncertainties continue to prevail over next financial year as well. The lockdowns and safety measures related to the pandemic has also impacted the productivity across the manufacturing facilities. The Company closely monitors the factors impacting the macroeconomic performance in its key markets and to counter these risks continues to broaden its product segments, increase customer base and enhance geographic reach.


Effective risk management is fundamental to the business activities of the group. While we remain committed to increasing shareholder value by developing and growing our business within our board-determined risk appetite, we are mindful of achieving this objective in line with the interests of all stakeholders

The Company emphasizes on achieving the corporate strategic objectives by following best practices in Risk Management. It has formulated a risk management policy and has in place a mechanism to inform the Board Members about risk assessment and minimization procedures and periodical review to ensure that executive management controls risk by means of a properly designed framework.

Our policy is based on the following principles:

• The Board of Directors and Management are responsible for monitoring internal risk management

• Effective risk management and internal monitoring will reduce the likelihood of errors, wrong decisions and surprises due to unforeseen circumstances;

• In order to thrive, an enterprise must take risks. The Management Board is responsible for determining the limits of what is acceptable (referred to as risk appetite).

• Line managers are responsible for the implementation of risk management for the processes for which they are responsible.

This mechanism is implemented as an integral part of our business processes across the Dynamatic Group Companies and includes recording, monitoring, and controlling internal enterprise business risks and appropriate actions are immediately taken to mitigate such risks


Dynamatic Technologies is always focused on achieving international quality standards for its products and services. In pursuit of this goal, Dynamatic Technologies has established a comprehensive QMS which encompasses all aspects of the business with a focus on establishing a quality assurance ecosystem that is designed to consistently deliver quality products and superior service.

To achieve product quality assurance, the Company focuses on excellence in in-house production processes while ensuring that suppliers consistently produce components as per specifications.

Aerospace: Dynamatic-Oldland Aerospace is always focused on achieving international quality standards for its products and services. In pursuit of this goal, the Company has established a comprehensive Aerospace Quality Management System which encompasses all aspects of the business with focus on establishing a quality assurance ecosystem that is designed to consistently deliver quality products and superior service.

During FY2021, your Company has successfully completed the surveillance audits to ISO: 14001 specifications for its Environmental Management System and Information Security Management System (ISO/IEC 27001). Your Companys QMS which is compliant to ISO: 9001 and AS9100 standards since 2006, has evolved and matured and is highly system driven and was audited by DQS and Novostar, India with ZERO nonconformance.

Dynamatic Technologies is also NADCAP accredited (accreditation for special processes in the aerospace and defence industry) for special processes like heat treatment, spot welding, non-destructive testing, measurement & inspection and chemical conversion in the current year got NADCAP for Alodine procases.

For the first time, Boeing carried out a General Performance Assessment (GPA) Assessment of Dynamatic-Oldland Aerospace, India covering the following categories. Management, Schedule, Quality, Technical, Cost

The assessment was successfully completed with GOLD rating. The General Performance Assessment (GPA) rating is a major critical step in qualifying Dynamatic-Oldland Aerospace for Boeing Performance Excellence Award.

Hydraulics: Dynamatic Hydraulics has successfully

completed the surveillance audits to ISO: 9001 specifications for Quality Management System and also to ISO:14001 specifications for its Environmental Management System. These two management systems which are merged and called as Integrated Management System (IMS) was audited by UL DQS India. The Company has also successfully completed IS0 45001 AUDIT for occupational health and safety management systems OHSAS.

Automotive & Metallurgy: In FY2020, preparations have been completed for the AS9100 standards, at the facility of Eisenwerk Erla GmbH. However the planned certification during FY2021 has been temporarily deferred due to Covid -19 Pandemic. The Dynamatic Quality Management System (DQMS) addresses the quality requirements and management expectations set out by the global automotive OEM such as BMW, AUDI, VW, Daimler, MAN. DQMS utilizes some of the best tools such as 5S, 8D, FMEA, APQP, Ishikawa, Business Process Re-engineering, Overall Equipment Effectiveness, Root Cause Analysis, Six Sigma, Statistical Process Control, Total Productive Maintenance, Visual Control, Learning-byDoing and Employee Participation Program (EPP).

Lean Management concepts together with quality tools are being used on the shop floor by management to increase the overall equipment effectiveness (OEE) of the operations. This is achieved by reducing rejections, set ups, cycle time and through effective material management. The EPP has resulted in the participation of employees in innovative activities and their contributions have resulted in continual improvements to work and work processes.


Dynamatic - Oldland Aerospace has a well-established Information Security Management System (ISO/IEC 27001) and has been certified by DQS, India since March 2018 and recertified again for 3 years. During the current year, the company has successfully completed the routine internal audits on Information Security Management System. Over the years, with due training and awareness sessions, the system has matured and data security measures are well established. In the ISMS Policies and Procedures, Data security risks are all addressed in the process and followed in accordance to the ISMS requirements.

The Information Security Management System (ISMS) addresses the Data Security requirements and expectations of aerospace customers like Airbus, Boeing, Bell and HAL and hence it is a key responsibility of the management to protect and safeguard the customer data.

Having the Data Centre upgraded from traditional physical servers to high end "virtualization", wherein, virtual servers are configured and used for various applications, the performance has enhanced and it is now a more effective and reliable data storage. To ensure Business continuity, backup of the entire data of the server is required and is maintained at a different location outside Dynamatic Technologies, Peenya premises.

The Company has moved from traditional on-premises mail system to a robust cloud based mail system. This has enabled users to access mails and use features such as online meetings more effectively.

To enhance effectiveness in our functional systems, SAP Infrastructure on the cloud is being implemented. Functional users can access SAP application securely over the internet.

Awareness training is continuously given to all the employees on Data Security and Password Protection. Encryption has been adopted to ensure data security. Data transfers with customers and suppliers is through secured File Transfer Protocol. Having established a highly reliable system, the customers are comfortable to share the technical information with the Company. Separate virtual servers for each customer, are configured and maintained. The Company has always ensured and protected IP rights of the customers.

Apart from maintaining and upgrading the system, data security features are enabled for remote access where it can be effectively used for data centre resources.


Dynamatic Technologies supply chain is modelled around the delivery of enhanced customer and economic value through synchronized management of the flow of physical goods, services, and associated information from sourcing to consumption. Your companys robust supply chain management enables sustainable flow of critical raw materials and acts as a powerful source of competitive advantage.

At Dynamatic Technologies there is a continuous effort to adopt the best practices and tools to achieve excellence in supply chain, driven by a sharp focus on revenue growth, better asset utilization, inventory turns, cost reduction and accelerating cash to cash cycles. Flexibility, reliability and cost efficiency are the key drivers for our Supply Chain Management practices. In order to further enhance the cost efficiency model, the Indian Aerospace operations have been converted into an EOU. During the year, focus was laid on seamlessly integrating our strategic corporate objectives, engineering and IT systems and methods towards an optimum supply chain and productivity model.

• Speed to market management tools like Just in Time (JIT) manufacturing and distribution, vendor managed inventory (VMI) of detail parts and efficient customer response.

• Improving quality and productivity within operational areas such as warehousing, logistics, inventory management and packaging

• Value Addition & Value Engineering (VAVE) involvement with suppliers to drive the cost down

• Supplier rating linked scheduling

• Supplier audits and onsite training

• Global tax minimization including transfer pricing & customs duties

• Integrated customer services cell to handle customer complaints and warranty claims

Significant productivity increases can come from effectively managing relationships; information and material flow across enterprise borders. The Companys initiatives to leverage information technology in supply chain activities

have resulted in improved efficiency through real-time information exchanges and processing. Dynamatic-Oldland Aerospace has a 3-tier approach - Strategic, Tactical and Operational to ensure that the Supply Chain Management is operating efficiently and generating highest level of customer satisfaction at optimum cost. These measures have helped your Company improve cost and efficiency in a year, which was otherwise faced with global macroeconomic challenges.


Dynamatic Technologies always plans and executes actions to ensure the protection of the environment, conservation of energy resources and at the same time has focus on the health and safety of all its employees. The Dynamatic campus at Peenya has a well-managed green park. Dynamatic Technologies takes steps to ensure sustainable use of resources, maintaining ecological balance, and takes protective steps to minimise waste generation. Compassionate attitude towards environment is an integral part of operations and the Companys vision of sustainable and responsible growth.

Dynamatic Technologies Limited is a ISO: 14001 certified company. The company is ensuring its environment footprint which is of utmost importance especially given the growing awareness and stringency concerning environmental laws globally and the need for industries to responsibly account for their impact on the environment. Accordingly, the Companys policies are aimed towards optimizing usage of natural resources and implementing green technologies for production wherever possible. Techniques such as rainwater harvesting and waste water treatment have been adopted at all plants to minimize water consumption and wastage, considering shortage of water has become a growing concern in our country.

The new factory at Devanahalli is constructed with thermal roofing and thermal walls to conserve energy required to cool the interiors. The design also ensures 100% harvesting of rainwater. This enables adoption of systematic and quantifiable approaches and techniques to minimize impact on the environment.


Dynamatic Technologies is focused on creating and ensuring a healthy workplace, free from occupational hazards, to realize its aim of zero incidents. To achieve this vision, emphasis has been on making and implementing rules, training employees on preventive measures, and setting up fool-proofing measures on site. This is further complimented by the implementation of best-in-class engineering standards for design and project execution. This has enabled the company to keep workplace hazards to a minimum. The Company also provides various health benefits such as regular health check-ups and health related awareness programmes for the employees. These initiatives are conducted across all Company facilities and are in line with the Companys objective of maintaining a healthy and motivated workforce.

The Company also undertakes activities which are focused on health and safety of its employees on the shop floor. Awareness campaigns have been undertaken to enforce the use of personnel protective equipment (PPE) at work. At the same time, the Company has been successful in merging the EMS and OHSAS requirements into a common management system called IMS. This has avoided unnecessary duplication of work in monitoring and maintenance of records. The facilities are also certified for ISO 45001 on Occupational Health and Safety Management System by DQS.

We have conducted Covid tests for around 10,000 samples from last year till date as a preventive measure. Covid positive employees are advised to isolate / quarantine themselves for a minimum of 14 days with no wage-cuts.

All Government protocols and guidelines are adhered to in the Company, to mitigate the spread of the virus. The required devices in this regard such as masks, face shield, hand gloves, hand sanitizers are being provided to all employees. To maintain safety at the workplace, sensor-based water dispensers are provided, and air fresheners are kept across all departments.

To protect our employees and their families from the pandemic, we have organised vaccination drives. Also, being a social responsible Company, we have extended the vaccination drive to our customers, vendors and suppliers.

National Safety Week was celebrated in the plant and few events were conducted to bring awareness of safety while at work and while away from work. Special sessions were conducted to bring the awareness about Covid pandemic preventive measures by the way of wearing PPEs, Covid tests and vaccinations.


Dynamatic Technologies is always focused on creating a harmonious and inclusive work environment where employees feel motivated to contribute towards the collective goal. This outlook involves providing our employees the requisite perks and benefits, but also equal opportunities for growth and skill development.

The Company is committed to improving day to day work life for the employees through safe work practices, use of personal protective equipment on the shop floor and by continuously educating the workforce through training programmes and demonstrations. The management team also works towards implementing the industry best practices for safety and productivity across locations. On site health care facilities, health and accident insurance coverage, medical feedback from experts and support in maintaining Special health requirements form part of the initiatives undertaken by the Company.

From the beginning of the pandemic (COVID-19), Dynamatic Technologies has undertaken initiatives such as conducting frequent swab tests by setting up trained medical team, enforced COVID-19 appropriate behaviours as per the Government SOPs. Additionally, Dynamatic Technologies has brought out its own COVID-19 SOPs in line with the guidelines issued by MHA to contain the spread of virus. Dynamatic Technologies has set up a sophisticated Bio-security lab approved by NABL and managed by highly qualified and skilled personnel, which helps in identifying positive cases on the same day and further containment measures to be taken.

Dynamatic Technologies has proactively initiated multiple vaccination drives to safeguard its employees and their families. Further Dynamatic Technologies has gone the extra mile to vaccinate customers, vendors, suppliers and employees of neighbouring industries and the other stake holders. The vaccination has covered 100% workforce (First Dose).

In order to bring cohesiveness among employees and having good Industrial Relations climate in the organisation, an initiative was taken to start Gurukul and was inaugurated in the month of Jan-2021. This is a place for meditation, yoga, wellness and other training sessions.

An activity center was inaugurated in the month of Jan-2021, which is a center of refreshment for employees during their leisure time. This activity center is used for playing indoor games like table tennis, carrom, badminton and chess.

Dynamatic Technologies strength lies in its extremely competent and committed workforce, who feel cared for.


Dynamatic Technologies is always proud of its workforce, which is matured, involved and identifies itself with the companys mission. The Company is constantly focused on creating a conducive work environment through constant bilateral communication with an aim to achieve mutual growth. The Company has put in place an HR development framework to ensure employees career progression and greater connect with the vision and mission of the Company. This framework rides on multiple programs and opportunities for individual training and development, skill up-gradation schemes, congenial atmosphere for labour-management relationship and equal opportunities. HR policies, practices and the work environment are constantly reviewed to make them current, inclusive and enjoyable. The Company also strives towards acquiring, developing, management and retention of best talent in the market as we focus on optimizing workforce productivity and achieving growth for all.

The focus of the HR team is to promote the recognition of merit and hard work across the work force. They also work towards improving transparency and trust across the organisation. HR teams work towards inculcating Dynamatic vision and values through training, sharing, inspiring, and celebrating, to promote a sense of belonging amongst all the employees of the Company.

Highlights for the Year:

All women employees of the company were given training on "women safety", wherein topics such as self-defence techniques, stress drills, basic strikes and defence were addressed. A workshop on Prevention, Prohibition and Redressal of Sexual Harassment of Women at the Workplace was conducted.

An exclusive session on workplace etiquettes for women employees was organised. Further, we have now started several sessions with a well-known Psychologist to address our employees through dedicated sessions on topics like Wellness, Conflict resolutions etc.

Womens Day was celebrated in the month of March-21 by engaging all women employees in the campaign of Choose to Challenge. This seeks to keep all global citizens aware of the challenges that women still face and the importance of celebrating the social, political, economic and cultural achievements of women.

Birthday celebrations across all units were conducted to give special attention to the employees to make them feel valued and recognized. This also helps in the employee boosting employee morale and retention.

Kannada Rajyotsava was celebrated by the employees across all units on 1st November as a significance of the state formation day.

Ayudha Pooja was celebrated in the month of October to honour and express gratitude for all the instruments that add meaning to our life.

Lakshmi Pooja was celebrated in the month of November during Deepavali and Sankranti was celebrated in the month of January.

Competency Assessment and Training Identification (CATI) software being used by the HR department captures training provided to each employee. The number of hours training imparted is duly captured and also the effectiveness of such training is evaluated.

Dynamatic-Oldland Aerospace being declared an essential manufacturing Plant, it was imminent to keep the same up and running during the lockdown. Accordingly, all safety measures were taken to open the factory during the lockdown and ensure all employees are given a safe environment to work by conducting timely RTPCR testing, quarantining primary contacts and ensuring that covid affected employees are given adequate medical care and support. Families were re-assured and supported in case of being affected. Medical insurance was extended specifically for covid. Work from home extended wherever possible. Paid leave for positive cases and extended paid leave for critical and hospitalised cases were also provided.

As part of being socially conscious, during lockdown DOA distributed masks, sanitizers & other essentials to police staff working at different locations in Bangalore City for their tireless dedication even in the time of lockdown and also distribution of fruits to the needy in and around factory premises.

In spite of the disruption of business caused by Covid-19 in the first and second waves, Dynamatic-Oldland Aerospace took initiatives to raise awareness amongst employees and the safety measures to be followed were explained. The MD and CEO addressed the employees in a town hall meeting, briefing them on the proactive steps taken by the Company. Although the entire country was under lockdown, our Company was operational, obtaining necessary approvals from authorities.


Statements in this Management Discussion and Analysis contains "forward looking statements" including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Dynamatic Technologies future business developments and economic performance. While these forward looking statements indicate the Companys assessment and future expectations concerning the development of business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from expectations. These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with the Company, legislative developments, and other key factors that could affect the business and financial performance. Dynamatic Technologies undertakes no obligation to publicly revise any forward looking statements to reflect future/ likely events or circumstances, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with the Company, legislative developments, and other key factors that could affect the business and financial performance. Dynamatic Technologies undertakes no obligation to publicly revise any forward looking statements to reflect future/likely events or circumstances