Pritika Auto Industries Limited Q4 FY23 Earnings Conference Call Summary
Financial Performance
• Q4 Revenue: Increased by 54.7% year-on-year to INR 88.2 crores.
• Full-Year Revenue: Reached INR 362 crores, up from INR 271.23 crores in FY22.
• EBITDA: Improved to INR 41.53 crores despite raw material price volatility.
Strategic Focus
• Product Portfolio Expansion: Aiming to increase share in the commercial vehicle segment.
• Mitigating Seasonal Fluctuations: Targeting diversification to reduce reliance on tractor sales.
• Investment in R&D: To maintain competitive edge in tractor and commercial vehicle markets.
• Utilization of Funds: Plans to use funds from preferential warrants for capacity expansion and product diversification.
Operational Insights
• Capacity Utilization: Currently at 80%, with plans to increase to 80-85% within the year.
• Amalgamation Impact: Anticipated modest revenue increase of 5-7%, enhancing EBITDA and PAT margins by 2-3 basis points.
• Long-term Liabilities: Increased due to ongoing capacity expansion.
Capacity Expansion Plans
• New Capacities: Adding 12,000 metric tons per annum (greenfield) and 8,400 tons (brownfield).
• Total Capex: Approximately INR 40 crores with expected asset turnover of 4.5x to 5x.
• Casting Supply: 900-1,000 kg per tractor and 1,200-1,400 kg per commercial vehicle.
Export Strategy
• Target Markets: Focusing on exports, particularly to the USA.
• Growth Goals: Aiming for 15% year-on-year growth in exports and 10% of total tonnage in the coming years.
Technology Adoption
• Lost Foam Technology: Highlighted for its potential to improve profit margins by 300-400 basis points.
• Investment Comparison: Smaller, scalable investments (INR 25 crores) compared to traditional methods (INR 125-140 crores).
Conclusion
• Optimistic Outlook: Management expressed confidence in growth trajectory and operational enhancements.
• Encouragement for Inquiries: Participants were invited to reach out to the investor relations team for further questions.