Q4 2024 Nelcast Ltd Earnings Call Transcript
Key Points
- Nelcast Ltd (BOM:532864) achieved substantial export growth, with a 35% year-on-year increase, reaching INR445 crores in FY24.
- The company launched a one-megawatt solar power plant at its Pedapariya facility, contributing to sustainability and cost savings.
- Despite a forecasted downturn in the US commercial vehicle market, Nelcast Ltd (BOM:532864) remains committed to maintaining strong export business growth.
- The company expects a strong rebound in the domestic commercial vehicle industry in H2 FY25, driven by public investment in infrastructure.
- Several new product launches are planned for the North American and European markets, indicating potential for future growth.
- Total revenue for Q4 FY24 was down 5% year-on-year and 7.3% quarter-on-quarter, impacted by a significant drop in demand due to ongoing general elections.
- The medium and heavy commercial vehicle segment's subdued performance negatively affected overall revenue growth.
- The tractor market experienced a downturn in Q4 FY24, although some recovery is expected in Q1 FY25.
- Current capacity utilization at the Pedapariya plant is approximately 25%, below the targeted 30%, impacting overall efficiency.
- The company faces challenges in ramping up production at the Pedapariya plant, which has been a drag on profitability.
Ladies and gentlemen, good day, and welcome to Nelcast Limited Q4 and FY24 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Abhishek Bhatt from EY Investor Relations. Thank you, and over to you, Mr. Abhishek.
On behalf of Nelcast Limited, I would welcome you all to the company's Q4 and FY24 earnings conference call. You would have already received the results and investor presentation, which is also available in our filings with the exchange. To discuss the company's business performance during the quarter and outlook, we have with us today Mr. P. Deepak, Managing Director and Chief Executive Officer; and Mr. S. K. Sivakumar, Chief Financial Officer of Nelcast.
Before we proceed to the call, a disclaimer, please do note that anything said on this call during the course of interaction and in our collaterals, which reflect the outlook towards the future or which should be construed as a certain forward-looking statement, must be
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