Release Date: August 09, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Total income for Q1 FY '25 stood at INR172.1 crores, reflecting a growth of 33.49%.
- EBITDA for the quarter was INR17.49 crores, showing a growth of 36.76%.
- EBITDA margin improved to 10.16%.
- PAT for Q1 FY '25 increased by 39.91% compared to the corresponding quarter last year.
- NDR Auto Components Ltd (BOM:543214, Financial) has commenced expanding capacities to cater to growing demand, including acquiring land near Maruti Suzuki and exploring land acquisition near Kia's manufacturing facility.
Negative Points
- There are inventory issues in the CV segment, which could impact future performance.
- No new business has been acquired from Kia in the last quarter, despite plans for land acquisition in Anantapur.
- The company has not yet received business visibility from Toyota for the sunshade product.
- EBITDA margins, although improved, are still targeted to stick around the 10% mark, indicating limited immediate upside.
- Utilization levels and production volumes are expected to remain the same, suggesting no significant increase in output in the near term.
Q & A Highlights
Highlights of NDR Auto Components Ltd (BOM:543214) Q1 FY '25 Earnings Call
Q: Congratulations on a very strong set of numbers and a good start to the year. Should we factor in any seasonality in your numbers, or can we look at these as the normal set of numbers going ahead?
A: These are normal set of numbers for the quarter. Our numbers have been driven by strong SUV sales. - Pranav Relan, Whole-Time Director
Q: There are inventory issues with the CV segment. How are you looking into the situation? What are your utilization levels and deliverables for the near future?
A: Our utilization levels and production volumes remain the same. There is no downward revision at the moment. - Pranav Relan, Whole-Time Director
Q: What should be the volume growth for the year, and where will the growth come from?
A: The market has played out well for us with a favorable model mix. We start supplying to Kia in January 2025 and sunshades in February 2025. - Pranav Relan, Whole-Time Director
Q: What models are driving the strong numbers, and is there a share gain within the two key OEM customers?
A: It's mostly model mix. The Brezza, Grand Vitara, Fronx, and Jimny have done very well. There has also been a slight increase in market share. - Pranav Relan, Whole-Time Director
Q: Are you looking for land in Anantapur due to new business from Kia?
A: We are looking for land in Anantapur for future business opportunities. As of now, we haven't acquired any new business from Kia. - Pranav Relan, Whole-Time Director
Q: Any business visibility from Toyota for the sunshade product?
A: We are expecting some RFQs this quarter. If something converges, we will inform you. - Pranav Relan, Whole-Time Director
Q: Do you see EBITDA margins improving to double digits going forward?
A: We are working towards achieving a 10% margin. Let's stick to that for now. - Pranav Relan, Whole-Time Director
Q: Should we look at this quarter's revenue as the base run rate for the next two quarters?
A: Yes, that should be a fair number, subject to market conditions. - Pranav Relan, Whole-Time Director
Q: What is your focus in terms of portfolio expansion?
A: We are currently focusing on seats, NVH parts, and sunshades. We are exploring more parts and will update once there are developments. - Pranav Relan, Whole-Time Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
