Disclosure Submission
• Date: August 14, 2024
• Submitted to: BSE and NSE
• Context: Transcription of earnings conference call on August 8, 2024
• Signed by: Aarti Sahni, Company Secretary and Compliance Officer
Q1FY25 Earnings Overview
• Total Income: Declined by 5.18% to ₹107.22 crore
• Volume Sales: Increased by 8.58%
• Profit Before Tax (PBT): Fell by 18.75% to ₹21.75 crore
• Reasons: Change in product mix, rising Costs of Goods Sold (COGS)
• Regional Performance:
• Europe: Sales increased by 134.40%
• Asia (excluding India): Sales increased by 67.02%
• USA: Sales decreased by 44.76%
• Focus Areas: Cost management, R&D, automation for operational efficiency
• Management Outlook: Optimistic about growth in India and Europe; challenges in North America
Key Discussion Points
• Domestic Smart Meter Growth: Strong growth anticipated, driven by government initiatives; forecasts made on a ten-year basis.
• Global Demand for Bimetal Products: Positive outlook due to power electrification needs, especially in data centers.
• Hybrid Vehicle Market: Potential for significant growth, even if EV market slows.
• Customer Concentration: Top ten customers account for about 40% of business.
• R&D Investment: Focus on human resources and machinery; recent heavy investments in machinery.
• EBITDA Margins: Decline attributed to product mix and market shifts; potential recovery expected.
Market Insights
• U.S. Shunt Resistor Market: Decline due to automotive sector slowdown; competitive edge maintained in specialized applications.
• Capacity Utilization:
• Shunt: 40-45%
• Bimetal: 30-33%
• Contacts: ~90%
• Revenue Guidance: Projected growth of 8-12% and EBITDA margins of 22-24% for FY25.
Challenges and Opportunities
• Bimetal Segment Decline: Linked to metal pricing and election-related slowdowns; optimism for recovery with infrastructure projects.
• Domestic vs. Export Margins: Slightly lower margins in domestic market; potential impact on profitability.
• Performance Linked Incentive (PLI): Expected claim of around ₹3 crore based on production obligations.
Conclusion
• Commodity Prices and Margins: Stable gross margins despite variable commodity prices; higher value from shunt resistors in EVs compared to ICE vehicles.
• Future Outlook: New opportunities in automotive applications; management encourages further inquiries.

Disclosure Details
• Date of disclosure: June 6, 2024
• Earnings conference call held on: May 31, 2024
• Participants: Managing Director Mr. Sumer Ghumman, CFO Mr. Rajeev Ranjan
Financial Performance Highlights
• Q4 FY 2024 Profit After Tax: Increased by 34.07% to INR 25.33 crores
• Total Income Growth: 7% for the fiscal year, totaling INR 449.40 crores
• Debt Status: Zero-debt, indicating strong financial management
Strategic Initiatives
• New property acquisition
• Plans for a wholly-owned subsidiary in Italy to enhance European market presence
• Focus on sustainability and community engagement
Market Performance Insights
• Growth Areas: Significant growth in thermostatic bimetal and shunt resistor segments in India and Europe
• Decline: Noted in the American market due to sluggish automotive demand and low EV interest
• Cautious Optimism: Management believes the North American market may have bottomed out
Margin and Product Insights
• Gross Margins: Bimetal products (40%-42%) vs. shunt resistors (45%-48%)
• Smart Meter Market: Anticipated substantial growth in the upcoming financial year
• Joint Venture with Metalor: Expected to improve margins through better control over raw materials
Automotive Market Dynamics
• Sales Split: 70% from internal combustion engine (ICE) vehicles, 30% from electric vehicles (EVs)
• Hybrid Market: Growing faster than EVs, with some components applicable to both
Challenges and Future Outlook
• Flat Demand: Overall flat numbers due to mixed growth trends; growth in India and Asia offsets declines in North America
• Commodity Prices: Significant drop impacting revenue growth despite volume increases
• PLI Scheme: Booking of INR 12 crores for the quarter, with future bookings pending government confirmation
Conclusion
• Management remains optimistic about growth opportunities across various segments despite challenges in the U.S. market. The call concluded with an invitation for further inquiries.

Conference Call Details
• Date: February 9, 2024
• Participants: CFO Rajeev Ranjan, MD Sumer Ghumman, Head of Sales Kanav Anand
Financial Performance
• Q3 FY24 Total Income: Rs. 112.17 crore (4.31% increase)
• Nine-Month Total Income: Rs. 337.64 crore (8.8% increase)
• EBITDA (Nine Months): Rs. 81.03 crore (4.74% increase)
• Profit After Tax: Rs. 55.64 crore (3.56% increase)
• Segment Growth: Significant growth in Thermostatic, Bimetal, and Trimetal segments, especially in Asia (22% year-on-year increase)
Market Outlook
• Challenges: American market facing difficulties
• Opportunities: Optimism in India's energy sector transformation
• Interim Dividend: 35% (Rs. 0.70 per share)
Q&A Highlights
• Raw Material Prices: Declining realizations in Shunt and Bimetal segments attributed to raw material price fluctuations.
• Capacity Utilization: Contacts business operating at over 100% capacity; new plant expected by mid-2024.
• North American Market: Muted growth; potential for smart meters linked to government initiatives.
• Metalor MOU: Related to silver contact business; due diligence and planning ongoing.
• Smart Meter Contribution: Expected to reach around 20% of revenue.
• Growth Forecast: Current growth forecast of 10-12%, with optimism for improvement in the second half of the year.
Additional Insights
• Energy Storage Market: Significant investment potential; clarity expected in 2-3 years.
• Shipping Logistics: Manageable costs due to global disruptions.
• EBITDA Margins: Currently around 11-12%, with potential for improvement due to new plant efficiencies.
• Revenue Breakdown: 65-70% from automotive, with contributions from energy meters and storage.
Conclusion
• Management expressed gratitude to participants and confidence in navigating market dynamics while maintaining a solid cash position.

Financial Performance
• Revenue: INR 225.47 crores for H1 FY '24, 11.31% YoY growth.
• EBITDA: Reached INR 56.81 crores.
• Future Growth: Anticipated growth of 10% to 40% post Q4 FY '24.
Market Insights
• Customer Engagement: Increased engagement and positive outlook from clients.
• Smart Metering Sector: Expected production of 20 million units in 2024; focus on local manufacturing.
• Revenue Split: 40% automotive, 40% smart meters, 20% energy storage and motors.
Operational Updates
• Joint Ventures: Partnership with ArcelorMittal focused on industrial clad business; collaboration with Metalor in feasibility study stage.
• Cost Management: Decline in other expenses due to corrected supply chain costs; significant drop in profit share from joint ventures.
Market Challenges
• Domestic Market Contribution: 40% of total business, driven by bimetal sector growth.
• U.S. Market Slowdown: Attributed to broader demand issues; recovery expected soon.
Strategic Initiatives
• Process Improvements: Focus on automation, in-process inspection, and AI-driven data analysis to enhance production quality.
• Capacity Utilization: Shunt capacity utilization at 40%, scalable for future demand increases.
Future Outlook
• Growth Projections: Optimism about domestic and export markets; smart meter business expected to grow.
• 5G Opportunities: Involvement in supplying components for energy storage applications related to 5G infrastructure.
Conclusion
• Management Confidence: Despite challenges, management remains confident in achieving long-term revenue targets and improving operational processes.

Disclosure Details
• Date of disclosure: May 25, 2023
• Conference call held on: May 19, 2023
• Participants: Key management members including Chairman S.S. Sandhu and CFO Rajeev Ranjan
Financial Performance Highlights
• Q4 FY23 Total Income: INR 110.13 crores (23.30% increase)
• FY23 Total Income: INR 420.23 crores (29.70% increase)
• EBITDA Growth:
• Q4: 39.44%
• FY23: 41.94%
• Profit After Tax (PAT):
• Q4: 40.97% increase
• FY23: 39.60% increase
Strategic Focus
• Commitment to product innovation and customer satisfaction
• Plans for market expansion through R&D and strategic partnerships
Key Inquiries and Responses
• Cost-effective Production: High cross-block terms due to in-house expertise (Rajeev Ranjan)
• Revenue Guidance: Peak revenue expected in six to seven years (Rajeev Ranjan)
• Bimetal Segment Growth: Driven by demand for cleaner technologies (Kanav Anand)
• Product-wise EBITDA Margins:
• Thermostatic Bimetal and shunt registers: 20-25%
• Electrical contacts: 9-11%
• Capacity Utilization: Currently at 35% due to expansions
• R&D Expenditure: 1.39% of revenue
Market Insights
• Export Opportunities: Broader customer base for shunts, especially in EVs (Devesh Shrimali)
• EV Growth Trajectory: Sustainable development expected in three to four years (Rajeev Ranjan)
• Margin Sustainability: Volume-based business likely to maintain or improve margins (Rajeev Ranjan)
Competitive Landscape
• Domestic Competition: Minimal
• International Competition: Few key players
• Customer Concentration:
• Top five clients contribute <30% to thermostatic bimetal revenues
• <40% to shunt revenues
Product Development and Future Outlook
• Emerging Demand: Growth in electronic beam welded materials for renewable energy and smart metering
• Historical Margin Fluctuations: Attributed to product mix changes (Rajeev Ranjan)
• Working Capital Management: Improved domestic supply and inventory management (Rajeev Ranjan)
• Product Diversity: Helps maintain growth amid auto industry downturn (Kanav Anand)
Raw Material and Pricing Strategy
• Key Raw Materials: Nickel manganese alloys and copper sourced globally
• Long-term Customer Contracts: Include provisions for price fluctuations
• Profit Margin Stability: Raw material price changes passed on to customers
Conclusion
• Management emphasized commitment to sustainable growth and quality standards, with a consistent historical growth rate of 10-15% CAGR and recent growth exceeding 25%.