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Earnings Call Overview • Date: June 5, 2024 • Submitted transcript to National Stock Exchange of India and BSE Limited on June 7, 2024. • Led by Mr. Karan Shah, Whole-Time Director of Business Development. • Format: Listen-only with Q&A session.
Financial Performance Highlights • Standalone turnover: INR 704.98 crores. • Consolidated turnover: INR 1,062.74 crores. • Consolidated EBITDA margin: 10.14%. • Year-on-year revenue growth: 12%. • Standalone growth: 1.7%. • Consolidated growth: 3.3%.
Operational Insights • 14 plants across three countries. • Serves over 50 global customers. • Employs more than 2,500 people. • Subsidiary performance: • MEMCO: Resilient. • MFT: Adaptable in challenging European market. • EMOSS: Facing economic headwinds but committed to electric mobility.
Electric Vehicle (EV) Initiatives • Actively pursuing opportunities in the EV segment in India. • Over 25 vehicles deployed; plans for commercial agreements with key customers.
Financial Challenges • Standalone total income for Q4: Decreased by 0.2% year-on-year. • Consolidated income: Fell by 8%. • Focus on innovation and sustainability for future prospects.
Q&A Highlights • Government Incentives: Ongoing discussions for financial incentives for LCV electrification; current model is non-subsidized. • Subsidiary Performance: Acknowledgment of challenges; subsidiaries operate independently. • Retrofitting Business: Significant interest from large customers; potential for conversion from large fleets. • Operating Margins: Decline due to shift towards domestic business; need for more retrofitment centers may arise. • Transition to OEM: Expected timeline of 2-3 years; data from retrofitted vehicles will inform developments.
Growth Potential and Strategy • Long-term goal: 20-25% gross margin and 10-15% operating margin. • Cautious scaling approach to avoid overstretching resources. • Diversification in non-automotive components business; aiming for 25% contribution. • New EMOSS powertrain platform: Advanced and standardized for cost optimization.
Market Outlook • Projected domestic market growth: 8-10% annually over the next few years. • Anticipated impact from new contracts within 12-24 months. • Emphasis on operational efficiency and exploring new business opportunities.
Conclusion • Karan Shah expressed optimism for future growth and thanked participants for their engagement.
Precision Camshafts Limited Q3 FY24 Earnings Call Summary
Earnings Overview • Date of Call: March 1, 2024 • Total Income: • Standalone: INR 173 crores • Consolidated: INR 270 crores • Year-on-Year Growth: 1.2% for standalone business
Business Developments • New Customers: Onboarding new clients, particularly from MEMCO in Nashik. • Challenges: Facing economic slowdowns in Europe with MFT and EMOSS. • Electric Vehicle Development: Actively developing electric light commercial vehicles (eLCVs) with commercial sales initiated.
Investor Inquiries • Exceptional Financial Items: • Write-back of INR 70 crores • Inventory write-down of INR 36.5 crores • European Market: No order cancellations, but demand slowdown noted. • Vehicle Conversion Capacity: • Conversion time: 8 to 10 hours per vehicle. • Additional local setups may be needed based on demand.
Electric Vehicle Performance • Customer Feedback: Positive, with performance comparable to competitors (Tata Ace, Dost). • Range: 70 to 100 kilometers based on average laden conditions. • Future Plans: No current plans for entering the two-wheeler EV market.
Capital Expenditures • Investment: Sanctioned INR 50 crore for a new camshaft plant. • Buyback Discussions: Ongoing discussions about potentially consolidating the EV business for future capital raising.
Non-Engine Components • Production: Successful braking system component in production. • Diversification Plans: Exploring opportunities in defense and space industries.
Future Engagement • Earnings Presentations: Acknowledgment of the need for more timely presentations and calls. • Financial Insights: Suggestion to include accounts team members in future calls for detailed financial discussions.
Conclusion • Karan Shah expressed gratitude to participants and anticipation for future engagement.
Precision Camshafts Limited Q2 FY'24 Earnings Call Summary
Company Performance • Total income: INR 177.28 crores (standalone), INR 259.63 crores (consolidated) • 8.23% year-on-year increase in standalone income • 36% rise in EBITDA
New Developments • Successful onboarding of new customers • Launch of electric light commercial vehicles (e-LCVs) in India • New facility opening in Solapur
Electric Vehicle (EV) Strategy • Initial deliveries of Tata Ace electric vehicle; Dost launching in early 2024 • Competitive pricing due to high localization, lower total cost of ownership (TCO) for electrified vehicles • Focus on retrofit solutions for existing vehicles, targeting fleet owners
Market Competition • Main competitors: Tata Motors and Ashok Leyland in LCV segment • Numerous competitors in other vehicle categories
EMOSS Business Outlook • Optimism despite recent revenue declines, attributed to broader economic challenges in Europe • Overall market slowdown affecting all OEMs
Future Plans • Potential to become an OEM in India, expected timeline: 2-3 years • No current plans for raising capital for expansion or EMOSS business
Capital Requirements • EMOSS: Requires working capital, not heavily capital-intensive • OEM track: More capital-intensive due to vehicle development and testing
EV Market Insights • General slowdown in European market affecting EV sales • Low EV penetration in niche applications (e.g., garbage trucks, airport buses)
Customer Feedback and Market Focus • Positive initial customer feedback on new EV offerings in India • Focus on cargo light commercial vehicles and exploring the U.S. market, with primary focus on Europe and India
Camshaft Business Confidence • Growth expected due to long-term contracts and new machining plants • Implementation of cost-saving measures, including a solar power plant to reduce energy costs
Conclusion • Karan Shah expressed gratitude to participants and anticipation for future discussions.
Precision Camshafts Limited Earnings Call Summary
Earnings Performance • Date of Call: September 1, 2023 • Total Income: • Standalone: INR 178 crores • Consolidated: INR 270 crores • Growth Factors: Improved asset utilization and new projects; diversified customer base.
E-Mobility Subsidiary (EMOSS) • Revenue Dip: Due to challenging market conditions in Europe. • Order Book: Remains promising despite recent challenges. • Electric Driveline Development: For light commercial vehicles (LCVs) in India, pilot deliveries expected by Q3 FY24.
Market Concerns and Future Projections • Camshaft Business: Concerns raised about growth potential amid EV transition. • Karan Shah's Response: • Complete transition to EVs unlikely. • Strong order visibility for 5-7 years. • Ongoing investments in camshaft capacity and EV development.
Electric Light Commercial Vehicles (LCVs) • Market Status: Nascent, focusing on retrofitting existing vehicles for cost savings. • Scalability: Manufacturing setup is not a constraint; quick scaling possible.
EMOSS Business Challenges • Seasonal Shutdowns: Impacting revenues and EBITDA; stabilization expected. • Order Status: No cancellations, but some delays anticipated.
Competitive Landscape • Retrofitting Focus: Targets existing fleet owners, not direct competition with new EV manufacturers. • Technological Barriers: Complex retrofitting process limits competition.
Automotive Market Insights • Global Slowdown: Affecting all sectors, worsened over recent quarters. • Capital Expenditure: Minimal investment required for EV retrofitting, focusing on personnel and supply chain.
OEM Transition and Expansion • OEM Strategy: Long-term process (2-3 years) to gather data from retrofitted vehicles. • Market Expansion: Focus on Europe, but open to opportunities elsewhere (e.g., New Zealand).
Non-Engine Business Development • Growth: MEMCO's non-engine business increased from 5% to 25% over four years. • Future Contribution: Expected to reach 20%-25% of total revenue in 3-4 years.
Conclusion • Market Share Goals: Aim to increase from current 9%-10% despite EV rise. • Engagement: Karan Shah expressed gratitude for participant engagement during the call.
Earnings Call Overview • Date: June 20, 2023 • Participants: Karan Shah (Whole Time Director), Ravindra Joshi (Group CFO) • Key Focus: Operational and financial performance for FY23
Financial Performance • Consolidated turnover: INR 1,103 crores (22% YoY growth) • Standalone revenue growth: 12.3% • Consolidated revenue growth (Q4 YoY): 21.6% • Camshaft business growth: 14% YoY (from INR 530 crores in FY22 to INR 660 crores in FY23)
Key Achievements • Increased camshaft production • Expanded product portfolio, including components for electric vehicles (EVs) • Established first EV retrofitment plant in Solapur
Challenges and Future Outlook • Challenges in European operations • Confidence in growth, especially in the e-mobility sector in India • New non-automotive business opportunities identified
Capital Expenditure and Plant Details • EV retrofitment plant capex: INR 5 to 7 crores • Initial focus on retrofitting with a capacity designed for 1-2 years • Total capex for FY: Approximately INR 50 crores for standalone operations
Margin and Profitability Insights • Current EBITDA margins for camshaft business: 13%-15%, expected to rise to 20%-22% • Material price fluctuations managed effectively
Investor Feedback and Communication • Suggestions for improved timing of investor communications acknowledged • Karan Shah expressed gratitude for participation and future engagements
Growth Outlook • Positive trend in inquiries and business awards for camshafts • Strong OEM partnerships in the EV market • Anticipated sustained demand for 5-7 years • New captive power plant expected to save INR 12-18 crores annually
Conclusion • The call concluded with an invitation for further questions and engagement from investors.
Precision Camshafts Limited Q3 FY23 Earnings Call Summary
Date and Submission • Date of Call: March 3, 2023 • Submission: Transcript submitted to National Stock Exchange and BSE on March 6, 2023
Company Performance • Standalone Income: Increased by 4.4% to INR 171 crores • Consolidated Income: Increased by 3.9% to INR 298 crores • Key Growth Areas: • Camshaft business growth • New project awards • Significant growth in subsidiary EMOSS
Management Insights • Focus Areas: • Expanding partnerships • Adapting to market conditions • Positive outlook for future growth • EBITDA Margin: Consistent at 22% to 24% • New Developments: • Non-camshaft components for commercial vehicle braking systems • Production ramp-up for a large European customer
Future Plans and Challenges • Retrofitting Vehicle Kits: Focus on top-selling vehicles in India; order book building with certifications expected in 3-4 months • MEMCO Subsidiary Losses: Attributed to one-off employee-related expenditures • Capacity Utilization: Around 80% in camshaft business; future capital expenditures linked to new OEM programs
Market Position • Commitment to Camshaft Business: Despite the rise of electric vehicles, significant market share and growth potential in internal combustion engine segment
Closing Remarks • Gratitude: Karan Shah thanked participants and encouraged continued engagement for future discussions • Call Conclusion: Officially ended by the moderator on behalf of Precision Camshafts Limited