Q2 2025 Automotive Axles Ltd Earnings Call Transcript
Key Points
- Automotive Axles Ltd (BOM:505010) successfully optimized operational costs despite a soft market, maintaining strong performance.
- The company introduced the new Axle MS185 to Ashok Leyland, ramping up production effectively.
- Investment in upgrading plants with new machines and automation continues, enhancing operational efficiency.
- The company holds a significant market share of 63% to 65% with Ashok Leyland, with plans to increase it further with new product launches.
- Automotive Axles Ltd (BOM:505010) has shown consistent EBITDA performance, with improvements in operating margins due to better middle-class performance.
- The company's revenue for the quarter was down by 15% compared to the same quarter last year.
- There is uncertainty and lack of detailed information regarding the acquisition of American Axle's CV business by Bharat Forge, which could impact competitive dynamics.
- The market for medium and heavy commercial vehicles (MHCV) remains flat, affecting growth prospects.
- The company faces challenges in expanding its presence in the LCV segment, with limited progress in scaling up this business.
- Automotive Axles Ltd (BOM:505010) has not significantly increased its customer base in the export market, relying heavily on intra-company exports.
Ladies and gentlemen, good day and welcome to Automotive Axles Limited Q2 FY25 post results earnings conference call hosted by Batlivala and Karani Securities India Private Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Sailesh Raja from Batlivala and Karani Securities India Private Limited. Thank you and over to you, sir.
Yeah, thanks Neha. Good afternoon and thanks to everyone who have logged in to Automotive Axles Q2, FY25 earnings conference call. So let me introduce you the management participating with us in today's earnings call. We have with us Mr. Nagaraja, President and All-Time Director, Automotive Axles. Mr. S. Ranganathan here, CFO of Automotive Axles and (technical difficulty) Mr. Kishan Kumar, GM, India. I would now like to turn the call to Mr. Nagaraja for the opening remarks followed by Q&A. Sir, you may begin now.
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