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Earnings Overview • Date of Call: August 9, 2024 • Revenue: Rs. 7,439 million (13% increase YoY) • EBITDA: Rs. 1,275 million (stable margins at 17%) • Net Profit After Tax (PAT): Rs. 501 million • Order Book: Rs. 16.9 billion • CAPEX Plans: Rs. 4,500 million for expansion
Market Performance • Growth Areas: • Strong performance in domestic and international markets, especially in the 2-wheeler segment. • 34% YoY growth in emerging sectors (non-auto and tech-agnostic products). • Challenges: Logistics issues and increased employee expenses.
Strategic Focus • Margin Expansion: Targeting 20% margin expansion through: • Product and segment expansion. • Productivity improvements. • Focus on non-automotive sectors (industrial, aerospace, off-road vehicles). • International Business: 63% of order book expected from international markets with higher margins.
Technological Developments • Aluminum Forging: Significant progress in producing aluminum parts despite technological challenges. • MMRFIC Radar Business: Strong growth potential in defense and surveillance applications with expected EBITDA margins above 50%.
Business Insights • EV Market: 30% YoY growth in xEV components despite a decline in EV share of the order book. • Swedish Operations: Challenges due to a 20% decline in business; expectations for double-digit margins by FY '25.
Future Projections • Growth Expectations: • 8-10% overall growth projected above industry growth. • 40-50% CAGR anticipated in non-automotive and xEV businesses over the next 2-3 years. • 30-35% growth expected in aerospace for FY '25.
Closing Remarks • Technical Partnerships: Ongoing exploration in the aerospace sector. • Moderation in Off-Road Segment Growth: Expected growth around 14-15% compared to previous year's high growth rates.
Conclusion • Management remains optimistic about long-term projects and growth potential in various sectors despite current challenges.
Earnings Call Details • Date of Call: May 17, 2024 • Submission Date: May 23, 2024 • Participants: • CEO: Mr. BR Preetham • CFO: Mr. Vikas Goel • COO: Mr. Praveen Chauhan • Moderator: Mr. Raunaq Sabharwal (PhillipCapital) • Availability: Transcript on company website and stock exchanges
Financial Highlights • FY24 Performance: • Record annual revenue: Rs. 28,114 million • EBITDA: Rs. 4,800 million (17.1% margin) • Auto ICE segment growth: 17.7% • Tech-agnostic and xEV products growth: 43.3% • Non-auto segment growth: 25% to Rs. 3,239 million • Q4 Performance: • Revenue: Rs. 7,459 million (21% YoY growth) • EBITDA: Rs. 1,270 million (32% increase) • Net profit: Rs. 1,875 million (26% increase) • Net debt: Rs. 7.4 billion
Strategic Focus • Investments: • Ongoing capacity expansion, especially in aluminum components for EVs • Planned CAPEX of Rs. 400 crores for new capabilities • Growth Targets: • Aerospace revenue target: Rs. 350-400 crores by FY27 • Non-auto segment goal: 40% of revenue
Management Insights • Cost Management: • Addressed concerns about EBITDA sustainability and cost control • Emphasis on efficiency projects and renewable energy investments • Debt Management: • Current net debt: Rs. 6,419 million • Debt-to-equity ratio: 0.54 • Future Outlook: • Anticipated EBITDA margin improvements in Sweden operations • Projected peak revenue of Rs. 900 crores per quarter with 80-85% utilization
Market Opportunities • Order Wins: • Significant orders from Ford and aerospace clients • Expected growth in xEV revenues from 4.5% to 9.5% • Segment Growth: • Forecasted 40% growth in non-auto and tech-agnostic segments • 100% growth in xEV segment
Conclusion • Management Confidence: • Aiming for 60% of business from automotive and 40% from non-automotive sectors • Targeting to exceed industry growth by at least 10% while improving margins.
Earnings Call Overview • Date: February 13, 2024 • Transcript submitted on February 19, 2024 • Key Executives: • CEO: Mr. B. Preetham • CFO: Mr. Vikas Goel • COO: Mr. Praveen Chauhan • Focus: Unaudited financial results for the quarter and nine months ending December 31, 2023 • Format: Recorded call with Q&A session
Financial Performance Highlights • Record sales and EBITDA across all quarters in FY2024 • Q3 FY2024 revenues: Rs. 7126 million (27% YoY increase) • EBITDA margins: Steady at 16.9% • Significant contributions from: • Auto ICE segment • Growth in passenger vehicles and two-wheelers • Robust order book: Rs. 20.4 billion • Profit after tax: 55% YoY increase • Reduced reliance on top customers
Segment Growth and Prospects • Order book composition: • Automotive ICE: 47% • Non-automotive: 23% • xEV: 18% • Tech-agnostic components: 12% • Non-automotive segment growth projected at 45-50% • Challenges in Europe affecting margins
Future Outlook • Revenue targets: Expectation to grow at double the industry rate in the two-wheeler segment • New 4000-ton press at Bidadi plant for larger engine components • Current utilization rates: 67-70% with potential for improvement • Anticipated revenues in aerospace: 170-175 Crores for FY2025
Revenue Visibility and Strategic Plans • Revenue visibility from existing order book includes: • Fully mature business • Partially mature business • Newly ramping-up segment • Expected peak revenue potential: 900 Crores per quarter at optimal utilization • Focus on new technologies and capacity expansions
Conclusion • Emphasis on improving margins and expanding geographically • Acknowledgment of challenges in achieving targeted EBITDA margins • Call concluded with an invitation for further inquiries from participants.
Earnings Call Overview • Date: November 9, 2023 • Transcript available on the company's website • Key executives present: B. R. Preetham (CEO), Vikas Goel (CFO), Praveen Chauhan (COO) • Focus on Q2 financial results and future outlook
Financial Performance • Q2 Results: • Revenues: Rs. 6,929 million (9% YoY growth) • EBITDA Margin: Steady at 17% • Net Profit: Rs. 475 million (6.9% margin) • H1 Results: • Revenue: Rs. 13,529 million (16% growth) • EBITDA: Rs. 2,321 million (17.2% margin) • Cash Flow from Operations: Rs. 2,391 million • Net Debt: Reduced to Rs. 6,232 million
Business Segments • Automotive Sector: • Growth: 6.6% YoY • Auto-ICE segment: 4% growth • Two-wheeler segment: Benefiting from premiumization trends • Non-Auto Business: • Surge: 44% growth, driven by off-road and aerospace sectors • International Sales: • Positive contributions, particularly from the US market
Strategic Focus • Order Book: • Increased to Rs. 19.3 billion • Diversification into Auto-Tech Agnostic and xEV segments • Capacity Utilization: • Optimizing and ramping up machining capabilities
Management Insights • Growth Projections: • Targeting 40% revenue from non-auto and tech-agnostic products by FY2026 • Impact of UAW Strike: • Confirmed losses of approximately 5 Crores in September and 9 Crores in October • Aerospace Revenue: • Annualized at 130 Crores, with expected growth of around 40%
Future Outlook • xEV Segment: • Optimism despite global EV adoption slowdown • Inorganic Growth: • Selective approach with potential expansions in aerospace and defense • CapEx Plans: • Projected at Rs. 2,800 million, focusing on non-auto and non-ICE categories
Conclusion • Management expressed cautious optimism about future growth and market opportunities, with a focus on maintaining a diversified portfolio to mitigate risks.
Key Highlights • Date of Call: August 2, 2023 • Submission: Transcript submitted to the National Stock Exchange of India on August 8, 2023. • Executives Present: Group CEO B. R. Preetham and CFO Vikas Goel.
Financial Performance • Record Revenue: ₹6,601 million, 24% year-on-year growth. • EBITDA Margin: Stable at 17.3%, gross margin improved to 39.9%. • Profit After Tax: Grew by 30% year-on-year to ₹452 million. • Order Book: Increased to ₹16.9 billion, strong demand in Auto-ICE segment.
Market Trends • Indian Auto Industry: Positive trends with passenger vehicle sales up 9% and two-wheeler sales up 11%. • Product Growth: • Auto-Tech Agnostic and xEV products: 70% year-on-year increase. • Auto-ICE segment: 19.6% growth. • Non-auto segment: 27% growth.
Strategic Focus • Expansion Plans: New plants to enhance capabilities, targeting 20% long-term sales from xEV and Tech Agnostic products. • CAPEX: Anticipated around ₹300 crores, focusing on non-auto and Auto-ICE categories.
Growth Expectations • Export Growth: Management confident in achieving over 50% growth in exports. • Sales Contribution Target: 40% from xEV, Tech Agnostic, and non-auto segments within three years.
Customer and Market Insights • Top Customers: Contribution from top five customers decreased from 52.7% to 47.7%. • New Orders: Significant orders from General Motors, Stellantis, and EV customers.
Sector Opportunities • Aerospace Sector: Robust growth prospects due to increased orders from Indian carriers. • Two-Wheeler Market: Expected rebound, particularly in premium models.
Debt and Financial Management • Debt Levels: Rising due to CAPEX and working capital impacts; expected to normalize to ₹680-700 crores by year-end. • International Business: Longer collection periods affecting working capital cycle.
Future Outlook • Revenue Growth: Targeting 20% growth in revenue, EBITDA, and ROCE for FY '24. • Inorganic Growth: Evaluating opportunities, including investments in radar technology.
Conclusion • Optimism: B. R. Preetham expressed confidence in the company's growth trajectory for upcoming quarters.
Earnings Call Overview • Date: May 30, 2023 • Participants: Group CEO B.R. Preetham, CFO Vikas Goel, COO Praveen Chauhan • Host: ICICI Securities • Focus: Financial results for the quarter and year ending March 31, 2023
Key Highlights • Record Performance: • Significant revenue and profitability growth due to market recovery. • Certification as a great workplace and strategic investment in MMRFIC.
• Product Performance: • 78% increase in auto-tech agnostic and xEV products. • 50% growth in non-automotive segment, contributing 14% to total sales.
• Financial Results: • Q4 FY '23 total income: INR 6,230 million (7% YoY growth). • Full year total income: INR 23,560 million, net profit: INR 1,483 million. • Recommended dividend: 125%.
Future Outlook • Growth Projections: • Anticipated continued growth in FY 2024, especially in non-auto sectors like aerospace. • Expected increase in export contributions from 28.4% in FY23 to 32.5% in FY24.
• Capital Expenditure: • FY24 capex estimated at INR 250 crores, focusing on new orders in non-auto and auto non-ICE categories.
• Strategic Initiatives: • Plans for a leased facility in North America by Q3 FY24. • Emphasis on achieving a 20% EBITDA margin by FY '25 through the "20-20-20" initiative.
Challenges and Responses • Market Challenges: • Decline in export contributions due to geopolitical issues. • Impact of one-time costs on margins.
• Management Insights: • Recovery in export sales projected, with a focus on new orders and sectors. • Addressed concerns about rising debt levels, emphasizing necessary investments for growth.
Conclusion • Positive Outlook: • Confidence in achieving better growth in FY24, particularly in aerospace and tech-agnostic components. • Resilience in domestic market performance, with expectations for stronger overall results in the coming year.
Earnings Call Overview • Date: February 7, 2023 • Transcript submitted on: February 14, 2023 • Key Executives: • CEO: B.R. Preetham • CFO: Vikas Goel • COO: Praveen Chauhan
Financial Highlights • Revenue Growth: • 16% year-on-year increase to Rs. 5,640 million. • Domestic markets drove growth; international business remained flat. • Segment Performance: • Auto segment: 10% sales increase, significant from electric vehicles. • Non-automotive segment: 50% growth, with Aerospace sales up 92%. • Order Book: • Robust with potential peak revenue of Rs. 15 billion. • Breakdown: • Auto ICE: Rs. 7.34 billion (49%) • Auto tech agnostic: Rs. 4.52 billion (30%) • Non-auto: Rs. 3.16 billion (21%)
Future Outlook • Growth Projections: • Anticipated growth of 15% to 17% for FY '23. • Focus on new businesses in xEV and Aerospace/Defense. • Export Recovery: • Aiming for a 35-36% export mix by Q1 of the next financial year. • Acquisition Strategy: • Cautious approach to acquisitions, particularly in Aerospace and Defense. • Capital outlay of around 100 crore for potential acquisitions.
Operational Insights • Q3 FY '23 Performance: • Total income grew by 16% year-on-year. • Gross margins improved; EBITDA margins rose to 16.6%. • Net profit increased to Rs. 1,129 million. • Geographic Sales Mix: • India: 69.2% • Europe: 19% • USA: 7.6%
Challenges and Considerations • Domestic Two-Wheeler Market: • Under stress due to regulatory changes; revenue decline noted. • Cost Management: • Fixed costs managed amid revenue drops, especially related to the new aerospace plant.
Strategic Developments • New Aerospace Facility: • Expected to begin commercial production by April 2024. • Collaborations: • Ongoing partnerships with North American OEMs for lightweight components.
Conclusion • Positive Outlook for FY '24: • Anticipated growth rate of at least 10% above industry average. • Confidence in achieving long-term revenue targets from non-auto segments.