Q1 2025 PPAP Automotive Ltd Earnings Call Transcript
Key Points
- PPAP Automotive Ltd (BOM:532934) reported a significant improvement in EBITDA, rising from INR7.4 crores to INR12 crores, a growth of 62.2% year-on-year.
- The company has started production for new models such as the Maruti Swift and Tata Curvv, with the latter featuring 27 parts produced by PPAP, including 16 new technology parts.
- The industrial parts division saw substantial growth, achieving last year's full-year sales within the first quarter of this year.
- The tooling business, rebranded as Meraki Precision Molds, is gaining traction with orders from both automotive and electrical segments, expected to contribute 4% to 5% to total sales.
- The aftermarket business under the brand ELPIS is expanding rapidly, with significant traction on e-commerce platforms like Amazon and Flipkart, expected to contribute 4% to 5% to total sales.
- Despite improvements, the top line remains challenging due to market conditions.
- The lithium-ion battery business has been a major contributor to consolidated losses, although efforts are being made to turn it around.
- The company's debt has increased significantly from INR50 crores in FY21 to about INR160 crores in FY24.
- EBITDA margins have fallen from 17%-20% during FY16-FY19 to below 10% in recent times, primarily due to rising raw material prices post-COVID.
- Export revenue is currently under 1%, indicating a need for further development in international markets.
Ladies and gentlemen, good day, and welcome to Q1-FY25 earnings conference call of PPAP Automotive Limited. This conference call may contain forward-looking statements about the company, which are based on the belief, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Abhishek Jain, Managing Director and CEO. Thank you, and over to you, sir.
Yes, thank you very much for organizing this conference call today. Good morning, everyone. I extend a very warm welcome to all the participants joining us on this call for discussing the company's quarter-one performance for the financial year '25.
I am accompanied by Mr. Sachin Jain, the CFO of the company, along with the team of SGA, which is our
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