Some commentary on RACL’s major European customers, KTM and BMW. As you can see, most of RACL’s European revenues come from Austria and Germany which are home countries for the 2 brands respectively. Revenues from other European majors like Dana and Schneider are comparatively quite small.
KTM:
Did you guys know that Bajaj Auto owns around 50% of KTM’s holding company PTAG? Until last year Bajaj Auto used to own 48.5% of KTM outright, but last year it swapped its KTM shares with the holding company shares and now also partially owns a couple of other motorcycle brands called Husqvarna and GasGas. Bajaj is naturally also PTAG’s sales partner for India.
This is good news for RACL in India, because it means forging a relationship with Baja Auto for India businesses will not be difficult. Whether RACL can lower its prices or offerings to match what Bajaj needs for the domestic market is another matter though.
KTM is listed under the parent company as PTAG on the Vienna stock exchange.
KTM H1 FY22 results – shorturl.at/iruH0
KTM ticker on the stock exchange – shorturl.at/fhEIX
Revenues have increased YOY but volumes and EBIT has decreased as expected. They have hiked their revenue guidance for FY22 full year and expect to maintain EBIT margins between 8-10% (but lower than last year). They have lost market share in Europe and India due to lack of electronic components, but expect to claw back market share in the remaining 2Qs. Maybe bullish for RACL volumes.
BMW
BMW’s partnerships with TVS is well know. So RACL has another hook into the domestic market via the BMW relationship. BMW is listed on Nasdaq. Attaching their report for Apr-Jun Qtr and H1 CY22. As expected margins have nosedived and volumes are also under pressure this year. Fortunately, motorbikes have held up much better than 4Ws (Why we haven’t seen de-growth/stagnancy in RACL revenues) and company expects a slight growth in delivery volumes YoY for motorcycles. Motorcycles are a tiny segment for BMW contributing only 2.5% of their topline.
BMW_Group_Half-Year_Report_to_30_June_2022.PDF (701.4 KB)
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