2019 and 2018, our EBITDA Margin was 28.81%, 27.24%, 25.12% and 20.19%, respectively. Our overall
EBITDA margin increased at a CAGR of 16.15% on a restated consolidated basis, from 20.19% in Fiscal 2018 to
27.24% in Fiscal 2020.

Employee benefits expense comprises a large part of our expense after raw material costs. For the nine months
ended December 31, 2020 and in Fiscals 2020, 2019 and 2018, our employee benefits expense aggregated to =
1,105.91 million, = 1,709.86 million, = 2,168.31 million and 2 1,986.29 million, respectively, and, as a percentage
of our revenue from operations, were 10.81%, 11.46%, 11.93% and 13.14%, respectively in those periods. Our
employee benefit expenses are affected by statutorily prescribed minimum wage as well as wage payments
following retrenchment, besides the increase in headcount due to increase in volumes. As a material portion of
our overall manpower is located in India, rising wages in India will have a material impact on our net income. In
recent times, labour related costs have been rising in India. While our employee benefit expenses may increase in
absolute terms, we have been able to improve our operational efficiencies, which has resulted in a reduction in
our employee benefits expense as a percentage of our revenue from operations.

We also incur certain costs in order to ensure that the products that we supply to our customers are of high quality
and free of defects. Such costs relate to matters such as capital expenditure, manpower, systems deployment and
rejection and re-working of products. Quality control is critical to our operations and a failure to prevent the
passing down of defects to our customers may lead to significant costs.

Key Customers

We are significantly dependent on certain key customers for a major portion of our revenue. Within our
Automotive — Powertrain and Others segment, our key customers include TVS Motors, Daimler India, Tata
Motors, Tata Cummins, Mahindra & Mahindra, Simpson & Co. Limited, TAFE Motors and Tractors, Escorts,
Ashok Leyland, Perkins, Nelcast, Mitsubishi Heavy Industries, John Deere and JCB India. Within our Automotive
— Aluminium Products segment, our key customers include Daimler India, Royal Enfield and Mahindra &
Mahindra. Key customers within our industrial and engineering segment include Siemens and Mitsubishi Heavy
Industries. We have a diversified client base with our top 10 customers accounting for 59.15%, 53.41%, 56.25%
and 52.59% of our revenue from operations, in the nine months ended December 31, 2020 and Fiscals 2020, 2019
and 2018, respectively. Demand for our products from these customers has a significant impact on our results of
operations and financial condition, and our revenue are particularly affected by the inventory and production levels
of our key customers. We consciously follow a policy of diversifying our customer base. The loss of key customers
may harm our financial condition and results of operations. Moreover, we face competition from competitors both
domestically and internationally, who we compete with in relation to specific sectors, segments, sub-segments or
geographies. Our key competitive strengths include quality, cost, delivery, technical capability, level of vertical/
horizontal integration, and quality of management. Typically, large suppliers work only with a limited number of
OEMs. Consequently, we do not have a single competitor across all our product ranges.

OEMs and suppliers are continuing to implement various cost-cutting strategies, which include the restructuring
of operations, relocation of production to low-cost regions, vendor rationalisation and sourcing on a global basis.
We believe that the criticality of the products we manufacture, our strong relationships with many of our
customers, lack of alternate vendors, our ability to quickly scale up our production, quality and delivery
commitment and ability to produce diverse range of products across a number of geographies will allow us meet
these business challenges.

The demand from our customers determines our revenue levels and results of operations, and our revenue are
directly affected by production and inventory levels of our customers. New investments or increased revenue by
our customers tends to increase our revenue and results of operations, while a slow-down in demand for our
customers’ products tends to have an adverse impact on our revenues and results of operations. Accordingly, our
operations have generally grown with our customers’ businesses over time. Our customers, in turn, are dependent
on general trends in the automotive industry (see “- Macro-Economic Conditions and Factors Affecting the
Sectors in which we Operate” on page 290). Foreign exchange fluctuations may also subdue exports for some of
our customers, in turn affecting the size of their order book. Similarly, new model launches by our OEM customers
can have a positive impact on demand for our components.

Our sales to our customers also depend largely on the number and type of products that we supply to them and
our ability to increase our overall share of our customers’ purchases.

While our constant interaction with our customers enable us to understand their business plans and their business
strategy, it is difficult for us to predict with certainty when our customers will decide to increase or decrease

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