JTEKT India Limited Analysts’ Call Summary (June 19, 2024)
Financial Highlights
• GDP Growth: India's GDP grew by 8.2% for FY 2023-24.
• Sales Performance:
• Q4 FY 2024: Record sales of ₹6,321 million (19% YoY increase).
• Full Year: Sales of ₹22,455 million (10% YoY increase).
• EBITDA Margins: Improved to 11% in Q4 FY 2024.
Merger Announcement
• Merger Approval: JTEKT India approved a merger with JTEKT Fuji Kiko Automotive India to enhance competitiveness.
Financial Clarifications
• Receivables Write-off:
• Total of ₹77 million identified in long-standing receivable entries.
• Entries dated back over five years, reconciled after forensic audit.
• Charged to current year's profit and loss, deemed immaterial.
EBITDA Margin Insights
• Current Margin: Increased to 12% from 9.4% YoY.
• Factors for Increase: Cost control measures and benefits from the recent merger.
Capital Expenditure
• Spending: ₹1,700 million focused on capacity expansion and new product development.
• Future Plans: Significant investments planned to increase production capacity.
Export and Product Development
• Export Growth: Expected increase from 4% to 6% by 2025-26 due to orders from JTEKT Brazil.
• Stable Growth: Notable increases in exports to U.S. customers (E-Z-GO and Club Car).
• New Opportunities: Ongoing exploration for new export opportunities and product introductions.
Outlook
• Positive Automotive Sector Outlook: Commitment to meeting industry demands and sustaining growth.

JTEKT India Limited Q2 FY24 Earnings Conference Call Summary
Key Highlights
• Date of Call: November 7, 2023
• Submission to BSE and NSE: Transcript submitted on November 10, 2023
• Management Present: Chairman Hitoshi Mogi, CFO Rajiv Chanana
Financial Performance
• Record Revenues: INR 5,900 million for Q2 FY24, a 2% increase from the previous year
• Profit Stability: Stable profit after tax reported
• Investment Plans: Over INR 1 billion annually in capacity expansions
Market Insights
• Automotive Industry Growth: Projected to rank third globally by 2030 due to rising income and favorable policies
• OEM Partnerships:
• Maruti Suzuki: 8% sales growth, 2% production increase
• Mixed results with other OEMs: Hyundai performing well, Renault-Nissan declining
Export Growth
• Stable Growth: Particularly with U.S. customers Ezgo and Club Car (15% and 23% growth projected)
• New Opportunities: Discussions to supply a Brazilian group entity, potentially adding INR 50 crores in FY '25-26
Product Development
• CVJ Product Line:
• Projected sales of INR 120 crores for FY '24
• Current capacity utilization at 64%
• Expected sales increase with upcoming electric SUV launch
• Axle Sales Decline: Shift in focus to CVJ and driveline products due to technology changes
Margins and Financial Outlook
• Current EBITDA Margin: 10.3%, with potential for improvement post-merger
• Customer Sales Breakdown: Maruti Suzuki contributes 55% of sales
Electric Vehicle Market Readiness
• Discussions with OEMs: Engaging with Maruti Suzuki and Tata Motors for steering components in electric models
• Market Share Goals: Aim for 15% market share in the CVJ segment
Future Growth Strategy
• Expansion Plans:
• Significant capacity expansion in the CEPS segment
• Capital expenditure of around INR 1 billion for production capabilities and new product development
• Investment in Equipment: INR 100 crores annually for gears and CVJ maintenance, with an additional INR 80 crores for a second CVJ production line
Competitive Positioning
• Market Confidence: Despite competition from GKN and NTN, confidence in product quality and market expansion
• Local Capabilities: Emphasis on local technical capabilities and quick customer response as differentiators
Conclusion
• Optimistic Outlook: Management remains positive about future growth and market positioning in the evolving automotive landscape.

JTEKT India Limited Q4 FY '23 Earnings Conference Call Summary
Company Performance
• Record Sales Growth: Achieved 25,000 units, highest in over a decade.
• Financial Highlights:
• Q4 Revenues: 5.4 billion (13% YoY increase).
• Q4 Profit After Tax: 237 million (90% YoY increase).
• Full Fiscal Year Revenues: 220 billion (28% increase).
• Full Fiscal Year Profit After Tax: 792 million (140% improvement).
Investments and Expansion
• Manufacturing Investment: Over 850 million invested; plans for over 1 billion in annual capital expenditures.
• Production Capacity: Ongoing expansion with a focus on Constant Velocity Joint (CVJ) business.
Mergers and Cost Management
• Merger Progress: Advancing merger with JTEKT Fuji Kiko Automotive; approvals obtained.
• Cost Control: EBITDA margin improved to 8.5% standalone and 9.1% consolidated; efforts to reduce employee costs.
Future Product Launches
• OEM Partnerships: Discussions with Maruti Suzuki and Toyota for new models, including electric vehicles.
• CVJ Business Growth: Targeting INR 120 crores in revenue with current utilization exceeding 50%.
Export Sales and Aftermarket Opportunities
• Export Sales Decline: Dropped from 6-8% pre-COVID to 3.5%; ongoing discussions to stabilize supply chain.
• Aftermarket Focus: Initial focus on OEM relationships before exploring aftermarket opportunities.
Gross Margins and Customer Mix
• Gross Margin Concerns: Decreased from 34% to 29%; mechanisms in place to manage material cost fluctuations.
• Customer Mix: Maruti Suzuki is the largest customer at 56%.
Capital Expenditure and Market Expansion
• Future Capital Plans: Over INR 100 crores planned for FY24 and FY25; expansions in various product lines.
• New Product Wins: Recent wins in the LCV segment with Tata and Mahindra.
Revenue Share and Capacity Utilization
• Revenue Share with Tata: Increased from 2% to 4% due to successful collaborations.
• Current Capacity Utilization: Stands at 75%, with plans for further expansion.
Conclusion
• Commitment to Growth: Emphasis on investments for future growth and profitability in a booming automotive sector.