Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- NDR Auto Components Ltd (BOM:543214, Financial) reported a total income growth of 10.98% for Q2 FY25, reaching Rs. 175.57 crore.
- EBITDA for Q2 FY25 increased by 17.39%, amounting to Rs. 18.690 crore, with an EBITDA margin of 10.65%.
- The company achieved a PAT of Rs. 11.94 crore for Q2 FY25, marking a 15.58% increase compared to the same quarter last year.
- The order book has expanded significantly, now standing at Rs. 400 to 450 crore, up from Rs. 250 to 300 crore in the previous quarter.
- NDR Auto Components Ltd is focusing on expanding its portfolio and OEM partnerships, with plans to acquire additional land for future growth.
Negative Points
- The auto sector is experiencing a slowdown, which is expected to continue for the next one or two quarters, affecting order flows from OEMs.
- Despite high utilization rates of 80-85% at facilities, the company acknowledges a slight slowdown in the industry.
- The company is facing challenges in disclosing revenue potential from new land acquisitions and partnerships.
- There is a reliance on a few key customers, such as Maruti Suzuki, which the company is working to diversify away from.
- The anticipated revenue from new projects and expansions is subject to market conditions, which could impact future financial performance.
Q & A Highlights
Q: Can you provide details on the recent increase in your order book from 250 crore to 400-450 crore?
A: We have acquired an additional 50 crore in Business for BIW and a new seating program worth 100 crore. These will be executed over the next two years, primarily for Maruti Suzuki.
Q: What is the revenue potential from the newly acquired land in Aurangabad?
A: While we cannot disclose specific revenue projections, we plan to replicate our existing relationships with companies like Toyota and Hayashi Tempur to expand our operations.
Q: How is the current slowdown in the auto sector affecting your operations and capacity utilization?
A: Despite a slight slowdown, our capacity utilization remains strong at 80-85%. We anticipate this slowdown to be temporary and not a long-term issue.
Q: Can you elaborate on your capital work in progress and its expected impact on revenue?
A: Our capital work in progress includes investments in new models and shade businesses, expected to generate an additional 250-300 crore in revenue next year.
Q: What measures are driving the consistent improvement in your margins, and what is your margin outlook?
A: Our margin improvement is driven by operational efficiencies and leveraging our existing footprint. We aim to achieve a 12% EBITDA margin in the next 1.5 to 2 years.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
