Investors

Delivering value through our ESG Vision 2030

We are committed to shaping the future responsibly, and our ESG targets demonstrate this commitment. Our ESG commitment is likely to have a significant positive impact on our long-term financial performance, make us more resilient in times of crisis, and help our investors manage their ESG risks better.

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Delivering value through business strategy

We have four clear strategic focus areas which help us position ourselves as a leading player at the forefront of mobility solutions. It is one of the reasons we continue to be the partner of choice for leading OEMs in India, continuing to generate industry-leading growth and profitability, and thus generating shareholder value.

Managing financial capital

We have a robust cash-generating business. Our strong credit rating allows us to raise debts at competitive rates if needed.

Our primary sources of liquidity are cash and cash equivalents and cash generated from our operations. We continue to remain debt-free, and we maintain adequate cash to meet our operational and strategic requirements and unforeseen events while also earning sufficient returns. Additionally, we have a strong balance sheet enabling us to report stable earnings across business cycles.

We have a robust Capex framework in place, which enables the efficient and judicious use of resources. It allows us to constantly invest in our business and act on emerging opportunities.

Creating investor value in CY22

We delivered double-digit growth in revenue and profitability, outperforming our competition. We achieved an operating revenue of ` 68,672 million in CY22. We delivered outstanding revenue growth of 23.5%, an EBITDA margin of 19%, and a Return on Capital Employed of 27.4%.

During the year, our ability to remain agile and respond quickly to changing market conditions enabled us to optimise operational efficiency and maintain a robust financial performance. Our prudent working capital management and strong profitability resulted in a surge in free cash flow to `3,768 million in CY22. Capex, which was at 7.3% of sales, stood at `4,990 million**.

# As on December 31, 2022
** Capex gross

Revenues (` in mn)

PAT margin (%)

Commentary

In CY22, we achieved a 23.5% increase in revenues compared to the previous year, driven by impressive export growth and sustained domestic performance. Our focus on effective cost countermeasures and operational optimisation enabled us to translate our healthy top-line growth into a PAT margin of 12.8% for the year.

Strategy	S1	S2	S3	S4
Impacted

Revenues
PAT margin

Free Cash Flow (FCF)* (` in mn)

Commentary

We continued our endeavours to optimising working capital management, utilisation of plant capacities, and capital expenditure practices, which enabled us to generate a healthy Free Cash Flow of ` 3,768 million during CY22.

Strategy	S1	S2	S3	S4
Impacted

*FCF/EBIT

Dividend per share (` )

Pay-out ratio (%)

Dividend per share restated due to sub division of equity share from `10 to ` 2 per equity share

Commentary

We remained focused on maximising shareholder value during CY22 and achieved a dividend payout of `24 per equity share (with a face value of `2), representing a payout ratio of 43%. This ratio is in line with our target dividend payout range of 30-50% of the annual standalone PAT.

*Annualised

EBIT (` in mn)

PAT (`)

Commentary

In CY22, we achieved an EBIT of ` 11,012 million, representing a significant 38% increase from ` 7,979 million in the previous year. We also improved our PAT, reaching ` 8,792 million for the year, thanks to a favourable revenue mix, efficiency gains, and sustained countermeasures to offset input cost pressures.

Strategy	S1	S2	S3	S4
Impacted

EBIT
PAT

Capex* (` in mn)

Commentary

As part of our commitment to expanding our business, we invested `4,990 million in Capex, up from `1,929 million in the previous year. Our focus going forward is on relocating our export business and increasing capacity for our growing domestic automotive and industrial operations.

Strategy	S1	S2	S3	S4
Impacted

* Capex gross

Net worth (` in mn)

Return on equity (%)

y-o-y growth Five-year CAGR

Commentary

During CY22, our Return on Equity (RoE) stood at 20.5% rising from 17.2% compared to last year. This represents our strong performance during the year despite the complex global macroeconomic and geopolitical environment. Our resilience and agility have proven invaluable and we have positioned ourselves to build a future-ready organisation.

Strategy	S1	S2	S3	S4
Impacted

Net worth
Return on equity