Sterling Tools
- [ ] MCU order book now at 200 crs vs 175 last quarter
- [ ] Total capacity of 300k units per year (one shift working)
- [ ] Client count 11 vs 10 last qtr
- [ ] 30 more client is pipeline, expected to close 3-4 in next few weeks
- [ ] Got one leading LCV maker for MCU business. LCV MCU business is expected to start in 4th qtr of the current year
- [ ] 10crs/month is the needed to breakeven in EV business
- [ ] 38crs revenue for EV business last qtr
- [ ] Current capacity utilisation of 50% in EV business
- [ ] Margins will be lower in MCU business vs Fastener business but, ROCE is expected to be higher in MCU business.
- [ ] EV business is less capex intensive but more open heavy.
- [ ] Sole supplier to every customer it is working with
- [ ] OLA is facing battery supply issue from LG causing slowdown in MCU business as OLA is company’s biggest client as of today
- [ ] Plan to launch 3 more EV products next year
- [ ] Expect 50% growth rate for next two years in EV business. Expected to close this year with sales of 175crs.
- [ ] Electric component availability better than before. Freight cost also coming down
- [ ] Expect fastener business to reach 80% capacity utilisation by end of the current FY. Expect to reach revenue of 700-800crs in faster business in two years time.
- [ ] Maintenance capes of 25-30crs/ year in fastener business
- [ ] G-Take has applied to JV approval. As of now the company only procures material from G-Take and no royalty has to be paid. Incase the JV approval doesn’t come through the company is expected to go a royalty route.
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