Ensuring resilience through robust risk management
Over the years, we have strategically diversified operations both geographically and across industries to minimize dependence on any single location or industry. Our presence in North America and Europe through subsidiaries has strengthened our global footprint. Despite macroeconomic uncertainties and geopolitical tensions, we continue to progress with aluminum forgings operations to align with the auto industry's focus on lightweight components. Our extensive presence across sectors such as Automotive, Defence, Oil & Gas, Mining and Construction, Power (including Renewable Energy), Aerospace, and E-mobility further mitigates economic risks. The Defence segment is steadily advancing due to the government's focus on indigenization, and our E-mobility vertical is poised for commercialization following strategic investments and a go-to-market strategy.
We source steel, our primary raw material, majorly through group companies, ensuring steady availability at competitive prices. Additionally, we have expanded into aluminum forgings and castings, and developed competencies in titanium, diversifying our raw material requirements. Our patented in-house manufacturing processes ensure efficient material use with minimum wastage. We also include price pass-through clauses in our orders to mitigate high input costs. Amid the ongoing supply chain disruptions and price volatility due to geopolitical tensions, we ensure sustained production by closely monitoring the evolving situation.
We employ adequate hedging and simple forward contracts on a rolling basis to mitigate exchange rate risks. Additionally, we maintain a natural hedge by ensuring that foreign currency borrowings are less than our export revenues.
We have been at the forefront of technological advancements through early investments in E-mobility and lightweight technologies. In Defence, we boast in-house developed competencies, and in Aerospace, we have established a global reputation for manufacturing critical components. We have also invested in state-of-the-art technologies like Industrial Internet of Things (IIoT) and Industry 4.0, driving greater productivity and reliability. The rapid adoption of SAP ERP, robotic process automation, digital thread, and data analytics has further bolstered our competitiveness.
We maintain a strong balance sheet and a robust cash position, with cash and cash equivalents at ₹ 25,250 million as of March 31, 2024. Prudent working capital management and capex allocation have reduced our debt. With a healthy net debt/ equity ratio and net debt/EBITDA ratio, we are well-positioned to procure external funds if needed.
We promote a conducive work culture with meritocracy at all levels. Regular programs are conducted to ensure employee health, safety, engagement, and skill development. We offer training on future-ready skills, including Industry 4.0, sensors, robotics, and manufacturing engineering. Additionally, we emphasize new talent acquisition and reward exceptional performance.
We have strengthened cybersecurity measures, adhering to ISO 27001:2013 standards. Our layered security approach, supported by next-generation tools, ensures real-time threat prevention. Regular Voluntary Product Accessibility Template (VPAT) assessments and independent third-party validations help strengthen our IT infrastructure. We also conduct awareness sessions and training for employees to bolster security measures.
