Incorporated in 1973, Dynamatic Technologies Limited (Dynamatic Technologies or the Company) is a manufacturer of highly engineered, mission critical products for the Aerospace, Metallurgy 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 45 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 Tier-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 located 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 Metallurgy.
Dynamatic Hydraulics is one of the largest manufacturer of Hydraulic Gear Products in the world, with three state-of-art manufacturing facilities located in India and a facility each in the UK and Milwaukee, USA. This business unit designs and manufactures hydraulic gear pumps in both aluminium and cast-iron in multiple frame sizes. Range of products include high efficiency gear pumps, low noise pumps, high pressure 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 OEMs . The business unit also manufactures bespoke, very high flow scavenging pumps, lube 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 centres in Bengaluru (India) and Swindon (UK) and holds several patents to its credit. With rich experience in application engineering and rapid prototyping capabilities, Dynamatic Hydraulics can develop bespoke solutions for OEMs in quick time.
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 best in class infrastructure for catering to the needs of global OEMs such as Airbus, Boeing, Bell Helicopters, Dassault Aviation. Domestically, the Company is working with the defence sector PSUs such as HAL and BEL. The major products of the Aerospace & Defence segment are control surfaces such as wing, ailerons and wing flaps, fuselages and other key flight critical airframe structures such as flap track beams. Over the period, the Aerospace division has developed excellent capabilities in automated robotic machining, five axis components in aluminium, steel and titanium. The Company has also expertise in tooling capabilities.
The 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-art manufacturing facility in Germany. Dynamatic Technologies can vertically integrate the competence and locational advantages of its facilities to deliver greater value to its customers.
RESEARCH & DEVELOPMENT
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.
The Company owns 21 patents in various countries including India, the USA, the 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 the UK. DTL employs over 80 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- 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.
GLOBAL MACROECONOMIC SCENARIO
2021 was a year of recovery and resilience with a changing macroeconomic dynamics across the world. The recovery was supported by robust consumer spending and uptake in investments, which had come to a halt in 2020 amidst lockdown measures worldwide. The global economy grew by 5.5% in 2021, the highest growth rate since 1976. However, the growth has been weakened considerably since the end of 2021. This weakening is on account of higher inflation due to disruptions in supply chain along with increasing demand and higher commodity prices. The recent shift in monetary policy by the central banks around the world to control the inflationary pressures has further weakened the momentum and increased uncertainty of economic recovery. According to IMF, the global economy is expected to grow at 3.6% in 2022. The geopolitical conflicts, increasing food and fuel pricing pressure and worsening supply-demand imbalance have increased overall risks to economic prospects and policy trade-offs have become more challenging. Going forward, the central bank policy rates are expected to rise further as policy makers tightened existing monetary measure which in result is exerting pressure on emerging market and developing economies. According to the IMF, the advanced economies are projected to grow at 3.3% in 2022 and 2.4% in 2023 whereas, the emerging economies are expected to post a growth rate of 3.8% in 2022 and 4.4% in 2023, respectively. [Source: IMF World Economic Outlook April 2022]
FY2022 for Indian economy started with signs of strong recovery amid rapid vaccination progress, less stringent social restrictions and supportive fiscal and monetary stances. During April-December 2021, the economy grew at 10.9% as compared to a contraction of 9.9% in same period last year. The growth was mainly driven by fixed investment, private consumption and robust exports growth. However, according to National Statistical Office (NSO), the growth has been declined in Q4 FY2022, impacted by weak rural demand, global geopolitical tension, its effects on supply chains, sharp rise in the inflation and shortage of coal, power and semiconductor. Owing to drastically altered economic environment, the Indian economy is expected to grow at 8.9% in FY2022 as compared to contraction of 6.6% in FY2021, above its prepandemic (2019-20) level by just 1.8%. While Indias direct trade and financial exposures are modest, indirect impact from the slowing global economy, the sharp increase in commodity prices and uncertainty on account of geopolitical developments weigh heavily on the outlook. Considering the growth and inflation outcomes are at high risk, the central bank has started tapering liquidity by tightening policy rates for the first time in nearly four years. According to IMF Indian economy is expected to grow at 8.2% in 2022, while growth rate is expected to decline at 6.9% in 2023. [Source: RBI, NSO and IMF]
INDUSTRY OVERVIEW AND SEGMENT DISCUSSION: HYDRAULICS:
Dynamatic Hydraulics is one of the worlds largest manufacturers of hydraulic geared products with state-of-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 in multipale 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:
After a buoyant 2021, the tractors volume in India marginally declined in 2022. In addition to a higher base of FY21, the second wave of Covid-19 was more pronounced in the major states of India (Uttar Pradesh, Madhya Pradesh, Rajasthan, Maharashtra and Gujarat) which collectively account for 56% of the tractors sold in India. This impacted the demand for tractor in Q1 FY2022. Unlike traditional peak period in the month of May and June, the industry could not recover from this setback. The pandemic situation along with extreme weather conditions for the domestic agriculture sector has further impacted sector demand. In addition, the segment was also impacted by manpower shortages, skilled-workforce migration, inflation, raw material availability and logistics issues.
Despite this unfavourable scenario, the industry continued to report strong demand for power steering tractors and increasing use of tractors in non-farming sector. The growth in the demand for power-steering tractors is predominantly on the back of increasing use of tractors as multi-utility vehicles, particularly in the construction activities.
For the FY2023, the industry is expected to grow at high single digit growth. The macroeconomic tailwinds mostly remain intact for the rural economy, including the normal monsoon forecast, the expectation of a strong Kharif harvest and improved rural income.
Going forward, with large room for the farm mechanisation in India, increasing use of tractors in non- agriculture activities, improving demand for Indian medium HP tractors from other countries and higher investments in infrastructure development across the world are expected to fuel the tractor industry growth in the near term.
Construction and Material Handling:
Construction equipment sales declined by ~12% in FY2022 compared to last year due to rising steel prices impacting demand. The earthmoving equipment segment which accounts for nearly three-fourths of the total construction equipment sales in India declined 14%, while road construction equipment sales were lower by 10% during FY2022. However, material handling, material processing and concrete equipment registered positive growth during the year. Exports of construction equipment also increased significantly by 60% in FY2022.
Going forward, a strong recovery is anticipated during FY2023 on the back of low base effect as well as an enhanced export potential and the governments continued thrust on infrastructure development through National Infrastructure Pipeline, Gati Shakti Masterplan, National Monetisation Plan, constitution of National Bank for Financing Infrastructure and Development (NaBFID). However, with increasing raw material prices such as steel, bitumen and cement, the industry may experience some margin pressure.
Dynamatic designs and builds pumps and motors for construction equipment sector. At present market share of the Company is very limited in this segment. Going forward, we look forward to this sector as a good opportunity to explore new products, new application and new markets
Dynamatic Hydraulic manufactures high precision hydraulic aggregates for tractors, construction equipment, material handling and machine tool industries. The Company has three state-of-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 a very advanced design, R&D Center and a rapid prototyping laboratory.
The Company continues to enjoy a major market share of ~75% in the organized Indian tractor industry and is the partner of choice for almost all the tractor OEMs globally. It also designs and builds complete hydraulic solutions incuding hydraulic hitch control valve with draft control and complete rockshaft assembly for the agricultural tractors.
The demand for power steering tractors is expected to continue to grow faster than the volume growth in the industry in the domestic market. Additionaly, there is an increasing global demand for mid size tractors produced in India. Industry will thus witness a steady growth in exports.
Dynamatic has strategically entered into this business and enhanced its capacity further to produce pumps for the steering requirement. With a healthy share of business and increase in global foot print on geared products, the Company is now focussed on wallet share per equipment offering complete hydraulic package to its OEMs. This will continue to be our key focus in next few years.
Furthermore, with given growth potential in the construction equipment sector, Dynamatic 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. Some of these products are currently undergoing trials with various global OEMs.
During the FY2022, the Hydraulics segment recorded a robust top line growth of more than 42% compared to last year coupled with significant improvement in the profitability for the period. The margin enhancement was driven by strong demand across our product portfolio resulting in better product mix. In addition, various cost optimization measures which were undertaken during the previous year have resulted in improved efficiencies.
Dynamatic Hydraulics, Swindon, UK, recorded 25% top line growth with revenue of GBP 12.1 Million. This was driven by post pandemic recovery of the region allowing the Company to operate at optimal levels, start of new projects with full scale production, improved market and demand in the US.
Looking forward, the year 2023 is expected to report a favourable growth in India and the UK supported by increasing use of technology and automation across the industries. However, disrupted global supply chain, higher commodity prices, labour shortages are anticipated to impact margins.
In FY2022 Dynamatic Hydraulics received the following awards:
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
Oct 2021:"Karnataka Best Employer Brand Awards 2021" for Promoting Health in workplace organised by World HRD congress.
Operational and Financial Performance
(Rs. in Lakhs)
The Hydraulics segment reported a robust performance during the year driven by increasing demand from agriculture and non-agriculture sector demand for tractors. EBITDA margins for the segment improved by over 683 basis points compared to last financial year. The margin enhancement was driven by strong demand across our product portfolio coupled with better product mix. In addition, various strategic initiatives undertaken during last few years such as shifting from outsourcing to in-house production for reducing dependency on third party vendors, increasing utilisation levels, minimising wastages, and enhancing cost controls, also contributed to the improvement.
AEROSPACE & DEFENCE:
Industry Overview and Outlook:
Indias defence manufacturing sector has been growing at a CAGR of 3.9% between 2016 and 2020. The Indian government has set the defence production target at US$ 25.00 billion by 2025 (including uS$ 5 billion from exports by 2025). Defence exports in India were estimated to be at US$ 1.29 billion in 2019-20. Indias defence import value stood at US$ 463 million for FY2020 and is expected to be at US$ 469.5 million in FY2021. Defence exports in the country witnessed strong growth in the last two years. India targets to export military hardware worth US$ 5 billion (Rs. 35,000 crore) in the next 5 years. As of 2019, India ranked 19th in the list of top defence exporters in the world by exporting defence products to 42 countries.
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.
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. Indias passenger traffic stood at 131.62 million in first nine months of FY2022. Domestic and international passenger traffic declined at a FY2016 - 21 CAGR of 9.0% and 28.6%, respectively, owing to COVID-19-related restrictions. In FY2021, airports in India recorded the domestic passenger traffic at ~105.2 million, a 61.7% YoY decline, while international passenger traffic declined by 84.8% YoY to ~10.1 million. In October 2021, the average daily domestic passenger flight departures stood at over 5,857, with average daily domestic traffic being ~7,00,000 air passengers.
Overall, the aircraft movement declined at a CAGR of 7.8% from 1.60 million in FY2016 to 1.20 million in FY2021. During the same period, domestic aircraft movement decreased at a
CAGR of 6.4% and international aircraft movement declined at a CAGR of 18.5%. Indias domestic and international aircraft movements reached 1,062 thousand and 135 thousand, respectively in FY2021.
Globally, demand for the new aircraft is expected to pick-up gradually as the major economies are expected to 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.
According to the International Air Transport Association (IATA), India is expected to overtake China and the United States as the worlds third-largest air passenger market by 2030. The rising demand in the sector has resulted in higher number of airplanes operating in the sector. The number of airplanes is expected to reach 1,100 planes in India by 2027. In addition, the capital expenditure by Indian 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 the medium to long term.
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 (BEL) & Hindustan Aeronautics (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 the 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 7,000 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 of flap track beam in the world. Going forward, the Company is focused on developing capabilities in large aero-structural assemblies, composites and high precision aero-structure designing and manufacturing.
In FY2022, the company was recognized for its capabilities from Boeing and was tasked to execute a new project requirement for Boeing F15 EX Former Assemblies. The company was able to meet the first article production requirements in a record time despite the pandemic which was recognised by the leadership at Boeing.
In FY2022, Dynamatic Oldland-Aerospace? received industry wide recognition and won a few major awards:
JUN 2021: Won 2 Par Excellence and 2 Excellence Award in 7th National Conclave on 5S 2021 organized by QCFI
AUG 2021: Won Gold award in Poka-Yoke Competition organized by CII & TPM Club of India (Virtual)
SEP 2021: Won 12 Gold awards and 2 Silver Awards in 30th Chapter Convention on Quality Concepts (CCQC)-2021 organized by QCFI- Bangalore
NOV 2021: Won 3 Par Excellence award in International Level (ICQCC) - Competition at Hyderabad organized by QCFI
DEC 2021: Won 3 Par-Excellence awards and 3 Excellent Awards in 35th National Convention on Quality Concepts (NCQC)-2021 organized by QCFI
JAN 2022: Won Gold & Special Award in National Awards for Manufacturing Competitiveness (NAMC) - 2021 organized by International Research Institute for Manufacturing (IRIM)
During FY2022, the performance of the segment was impacted primarily due to pandemic led travel related restrictions. Various travel bans between countries and decline in passenger traffic due to the Covid-19 continued to impact the performance of the civil aviation sector. In the Defence Aerospace, the Company has won orders from the Indian Defence Public Sector Undertakings (PSUs) which has helped to mitigate the slowdown in the civil aviation sector.
(Rs. in Lakhs)
The performance of the segment was impacted by global supply chain related challenges and manpower shortage in ancillary industries. However, the outlook for the sector remains promising. We have recently been awarded an order from Boeing for manufacturing assemblies for their tactical fighter, the F-15EX Eagle II. We expect the commercial delivery for this from second half of FY2023.
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).
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:
The automotive industry is the largest manufacturing sector in Germany in terms of turnover. As Europes leading market and producer, the automotive industry is also a global export powerhouse and driver of mobility innovation. The 60 companies in the passenger car and passenger car engine manufacturing generated a 16.1 % of the total industrial turnover to 295.6 billion euros in 2021. According to preliminary data from the Federal Statistical Office (Destatis), in 2021 German car exports increased by 9.9% YoY, however, as compared to 2019, there was a decline of 8.2%. The German automotive industry was impacted by the semiconductor shortage and challenges in the supply chain. The Country has exported passenger cars worth 16.7 billion euros (+14.0% YoY higher) to the China, 15.9 billion euros (+18.1% YoY) to the United States and 9.4 billion euros (-17.0% YoY) to the United Kingdom. Germanys imports of passenger cars declined by 2.4% YoY in 2021. Spain was Germanys most important trading partner in the automotive market. Germany has imported passenger cars worth 6.5 billion euros (-14.6% YoY) from Spain, 6.3 billion euros (+3.8% YoY) from the United States and 5.2 billion euros from Slovakia.
Going forward, with world-class R&D infrastructure, complete industry value chain integration, and highly qualified workforce, Germanys auto sector is expected to recover from the Covid-19 pandemic.
Eisenwerk Erla GmbH, Germany, a subsidiary of Dynamatic Technologies, is a preferred supplier of precision, complex metallurgical products for automotive engines and turbochargers to leading global automotive OEMs. The major clients of the Company in this segment are Audi, BMW, Borg Warner Turbo Emission Systems, Daimler, Volkswagen, Rotax and off-highway vehicle majors.
Eisenwerk Erla is growing in casting parts for Agriculture and Road construction vehicles which are part of the 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. It will allow Eisenwerk Erla to increase its competitiveness in manufacturing high-value precision parts of BMW
Operational and Financial Performance:
(Rs. in Lakhs)
Performance excludes DML, prior period adjusted to ensure comparability
During the FY2022, the Metallurgy segment saw an increase in production after the peak of the Covid-19 pandemic. However, with the Companys continued focus on margin expansion, low-margin product rationalisation continued during the year. The automotive 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 the Companys product base and in turn drive business growth. Overall, Dynamatic Technologies continues to focus on a high-margin product mix, a ramp-up of existing products, performance-critical components, customer diversification and capacity utilization for this segment.
TECHNOLOGY & QUALITY:
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 aerostructure portfolio had ever achieved. With this score, DOA remains at the top, amongst the list of aero-structure suppliers in Asia. In 2019, Boeing conducted extensive evaluation of DOA and awarded SILVER AWARD for Performance Excellence. In 2020, Boeing awarded General Performance Assessment GOLD AWARD which is the highest any supplier in aerostructure can achieve.
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 and Occupational Health and Safety Management System (OHSAS) certification under ISO 45001.
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.
ANALYSIS OF KEY RATIOS:
An analysis of key ratios for the period under review is as follows:
(Rs. in Lakhs)
|Profitability Ratios||FY22||FY21||Change %||Comments|
|EBITDA (Consolidated)||16,923||14,901||13.57%||Better product mix, inventory management, price increases for certain products contributed to margin enhancement and effective debt dollarisation|
|Net Profit (Consolidated - from continuing operations)||3,206||198||nm||Supported by strong performance in hydraulic segment|
|Net Profit Margins||2.56%||0.18%||238bps|
|Liquidity Ratios||FY22||FY21||Change %||Comments|
|Debt Equity||1.80||1.57||14.98%||Debt to equity ratio increased due to increase in working capital utilisation|
|Interest Coverage Ratio||1.59||1.02||55.95%||Increase in EBIT has led to increase in the interest coverage ratio|
|Return Ratios||FY22||FY21||Change %||Comments|
|Return on Net Worth||8.5%||0.5%||nm||Profitability ratios are improved significantly as result of better margin levels|
|Return on Assets||2.3%||0.1%||nm|
|Return on Capital Employed||9.8%||8.0%||nm|
|Turnover Ratios||FY22||FY21||Change %|
nm - Not Material
(Rs. in Lakhs)
|Year Ended 31st March||FY22||FY21||Change (%)|
|Reserves & Surplus||37,507||36,242||3.49%|
As at 31st March 2022, the Company had an authorized share capital of Rs. 2,500 lakhs, divided into 2,00,00,000 equity shares of Rs.10/- each and Rs. 500 lakhs divided into 5,00,000 redeemable cumulative preference shares of Rs.100/- each. During the year under review, there is no change in the Companys issued, subscribed and paid-up equity share capital.
The Reserves and Surplus were Rs. 37,507 lakhs, as on 31st March 2022, increased amounting to Rs. 1,265 lakhs compared to 31st March 2021
The change is attributable to:
(Rs. in Lakhs)
|Profit generated during the year||1,547|
|Debit balance arising on consolidation||(81)|
|Other Comprehensive loss during the year||(201)|
|Net Comprehensive Income for the year||1,265|
(Rs. in Lakhs)
|Year Ended 31st March||FY2022||FY2021||Change (%)|
|Long term borrowings||37,806||42,687||(11.43)%|
|Short term Borrowings||16,541||15,054||9.88%|
(Rs. in Lakhs)
|Year Ended 31st March||FY2022||FY2021||Change (%)|
|Property Plant and Equipment||44,399||44,534||(0.30%)|
|Capital work in Progress||1,454||325||347.38%|
During the year under review, the Company incurred capital expenditure of Rs. 3,751 lakhs for physical infrastructure and Rs. 384 lakhs for procurement of intangible assets. 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 Company mainly comprise of raw materials of Rs. 9,822 lakhs, work in progress of Rs. 11,974 lakhs, finished goods of Rs. 2,746 lakhs and stores and spares of Rs. 996 lakhs.
Defense Sector Growth: The Indian Government is committed to make the country self-reliant and position it as one of the leading exporters for defense goods. Defence exports in the country has recorded strong growth in the last two years. India targets to export military hardware worth US$ 5.00 billion (Rs. 35,000 crore) in the next 5 years. This target can be achieved only with strong private participation. Allowing of private participation in the defense sector is anticipated to provide impetus to the indigenous manufacturing in the sector. [Source: Ministry of Defence, Government of India]
Focus on Civil Aviation: The Indian civil aviation segment has experienced significant recovery towards its pre-covid levels in both passenger and cargo segment. In addition, with further relaxation across countries it is anticipated that international travel will also get boost. Recently, India also launched seaplane services in Gujarat from Statue of Unity in Narmada District to Sabarmati Riverfront in Ahmedabad. There are also plans to develop new water aerodromes across the country. Such new initiative in collaboration with existing initiatives like regional connectivity scheme is favourable for the global OEM and related manufacturers.
Support to Agriculture Sector: The Indian Government over last years has been focused on enhancing quality of people associated with the agriculture and allied sectors. Many initiatives have been undertaken to enhance productivity, reduce wastages and increase farmers income. These initiatives coupled with focus on farm mechanisation such as establishment of custom hiring centres, farm machinery bank and high-tech hubs in different states has also been undertaken. India is among the largest global manufacturer of farm equipment like tractor, harvesters and tillers. The Government focus on the sector and farmers quality of life is expected to further drive growth of the farm equipment sector.
Preferred Sourcing Destination: Various efforts by Indian Government to enhance Indias global competitiveness and improvement in ease of doing business parameters have resulted in India emerging as a preferred sourcing destination. Furthermore, China plus One strategy adopted by leading global investors have also supported the trend. Various global tier-1 suppliers have also announced plans to increase their procurement from India.
Investment in R&D: With India emerging as preferred manufacturing destination, there is strong demand for setting-up R&D centres as well closer to the production site. Currently, there is trend for investments 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.
Strong Technology and Manufacturing Platform:
Dynamatic Technologies is always committed to enhance its existing capabilities and with that focus, 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. In addition, the expected strong momentum for hydraulics segment is also anticipated to contribute significantly in the Companys performance.
Diverse Product Portfolio and End Market Segments:
Dynamatic Technologies product portfolio is diversified across three key business segments, namely Hydraulics, Aerospace and Metallurgy. This spread ensures that the Company performance is relatively stable and is not dependent on any single industry segment. The Company has an optimum mix of high growth and stable end markets.
Regulatory changes: As OEMs seek to develop alternative powertrain technologies, suppliers will be required to provide more value-added content per car. 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 infrastructure and agriculture sector will also help Dynamatic Technologies to capitalize on the prevailing opportunities.
RISKS & CONCERNS:
Global Economic Uncertainty: Prevailing geopolitical situation has added uncertainty to the overall global economic growth. The last few years were impacted by pandemic which restricted free movement of critical resources across countries. The ongoing tension between Russia and Ukraine and related sanctions have created demand-supply mismatch of critical resources resulted into significant inflation globally. The increase in raw material prices and high interest rate scenario has made capital expensive. Dynamatic Technologies has global operations and operates in capital intensive sectors. If the prevailing situation continues for a longer period, it may have impact on the performance of the Company.
Competition: The business environment in which the Company operates is highly competitive in nature. 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.
Technological Changes: The Companys products are technology driven and in todays era, the technology is continuously evolving resulting in smaller lifecycle of the related products. 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 of the Company which is 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 financial transactions. 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.
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 through risk management committee 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, Risk Management Committee 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 and 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
QUALITY MANAGEMENT SYSTEM (QMS)
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-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.
During FY2022, your Company has successfully achieved the Occupational Health and Safety Management System (OHSAS) certification to ISO 45001.
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 processes.
For the first time, Boeing conducted 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.
Metallurgy: During the FY2022, Dynamatic Technologies has completed preparations for the AS9100 standards at Eisenwerk Erla GmbH facility. The Company completed the certification process by November 2021 and received certificate in February 2022.
The Dynamatic Quality Management System (DQMS) addresses the quality requirements set out by the global automotive OEM. 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-by-Doing 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.
INFORMATION SECURITY MANAGEMENT SYSTEM (ISMS):
Dynamatic - Oldland Aerospace has a well-established Information Security Management System (ISMS), ISO/IEC 27001 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.
In line with the strategy of continuous digital transformation and evolution, Dynamatic Technologies has successfully implemented new ERP system SAP S/4HANA for the Indian operations. The new system, once implemented globally, will help us to have better operational and cost efficiencies at group level.
SUPPLY CHAIN MANAGEMENT (SCM) AND PRODUCTIVITY:
Dynamatic Technologies supply chain have a vision to provide flexible, sustainable and an efficient services and products line delivered at right quality, right quantity, right place and on time to the Customers. Supply Chain evolves in each of the processes through continuous improvement and innovations thereby providing competitive advantage in the entire cycle of Operations.
At Dynamatic Technologies there is a continuous emphasis on digitisation of key processes thereby reducing dependencies and efforts in performing repetitive activities. Flexibility, reliability, compliance and cost efficiency are the key drivers for our Supply Chain Management practices. In the process of achieving a matured Supply Chain the skillsets at each individual levels are being enhanced by providing opportunities to an individual to lead and meet or exceed business objectives. 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 current operations into S/4 HANA ERP Systems developed.
• Supply Chain has supported multiple work transfers from Customer into your Company
• Optimisation of Inventories on hand were performed for all Projects
• Supply Chain along with the partners developed software to manage Supplier relationships effectively
• Supply Chain are designing processes to have a proactive approach for challenges foreseen
• 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
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 being 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.
SAFETY AND HEALTH:
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.
In spite of pandemic ravaging the industries, we were still able to maintain normalcy, with pro-active measures. Testing - Tracking - Isolating - Treating - Vaccinating methodology was used to contain the spread inside the Factory premises.
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-19 pandemic preventive measures such as wearing PPEs, Covid-19 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.
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.
In response to shocks of the recent pandemic, the Company is also allocating resources for the development of current and potential leaders to build new skills to function effectively in new work environment.
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.
The Long-Term Wage Settlement which was due in this year was finalised to the mutual benefits and signed with the Union. The workmen have been extended an adequate increase, comparable with similar industries in Bangalore. This Settlement will remain in force for the next three years.
Human Resources (HR) at Dynamatic Technologies continued to play a pivotal role in managing, guiding and motivating the Companys workforce and as a strategic partner, the function is aligned with the business needs. The Company 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.
Dynamatic has taken on board a qualified psychoanalyst as wellness expert and has initiated one to one sessions to address concerns and apprehensions of our employees, if any. A Wellness camp was organised for all employees, wherein, topics like work-life balance, stress, interpersonal relations were covered and was well received by the employees.
Womens Day was celebrated in the month of March-22 by engaging all women employees in the campaign of Break the Barrier. In line with the campaign slogan, Dynamatic Technologies invited and honoured women Auto/Taxi drivers of Bangalore city who have broken the gender barrier and are successfully making a livelihood. This inspired and added confidence to our women employees, who have already broken the barrier and are working successfully alongside men in all the departments at various ranks.
Two of our Executives from the Operations team were selected by Army War College, Indore for participating in two weeks Higher Command Course (HCC) - Industry Joint Capsule. This course brought the armed forces and the industry representatives to have face-to-face discussions and enhanced the industrys collaboration with Armed forces.
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 boosting employee morale and retention.
Ayudha Pooja was traditionally celebrated in the month of October recognising the importance of maintaining tools and instruments that are used in the operations. Ayudha pooja celebration is akin to spring cleaning and housekeeping.
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 the training provided to each employee. The total number of hours of training imparted is duly captured and the effectiveness of such training is evaluated.
To encourage free lateral communication from our employees, MICROLAB, a small group discussion has been initiated. This is a monthly program, wherein, around 25 randomly chosen employees from different departments are invited for a discussion over a cup of coffee with the Co-COO, DOA and ED. The suggestions made during these discussions are addressed satisfactorily and closed.
Dynamatic-Oldland Aerospace? being declared as an essential manufacturing sector during lockdown was required to keep up the routines and run the operations. Accordingly, all safety measures were taken to run the factory and ensure all employees were 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 reassured and supported where required. Medical insurance was extended specifically for Covid-19 treatment. Work from home was extended wherever possible. Paid leave was given to employees who were tested positive for covid and extended paid leave was given to employees with critical and hospitalised cases.
Being socially conscious, Dynamatic Technologies distributed masks, sanitizers & other essentials to police and frontline staffs working at different locations in Bangalore City during lockdown period thus recognising their tireless service. Also fruits and food packets were distributed to the needy in and around factory premises.
SAFE HARBOUR STATEMENT
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.