Permanent Magnets – Business under transformation?

AGM22

• Energy meter faced headwinds due to semiconductor shortages

• Moving from component supplier to module manufacturer, this will increase ASP multifold

• Exploring projects in shunt and soft magnet category

• Automotive – 25% of revenue

  • Have pipeline of 200 projects – some are in r&d stage and some are in prototyping stage. 200 projects are across all segments, not specific to automotive.

  • Some of the projects can turn out big – depends on customer winning and end OEM approving

  • 25% sales from auto in FY22

  • Can do 100cr topline in 3-4 years from auto segment

  • Current sensing – customer does not like to keep multiple suppliers due to sensitivity

  • 50-60% revenue – from products where we are sole suppliers

  • In touch with tier 1 suppliers and end design companies in auto companies

  • 80% sales will be EV, 20% revenue from speedometer/ICE

  • Supplying to Mahindra. Currently buying whole kit through imports.

• Smart Meters – 38% of revenue

  • Domestic demand of meters is slow due to semiconductor shortages

  • Export market has lesser semiconductor shortage compared to domestic market

  • Low margin to supply to domestic smart meter manufacturers

• Module Manufacturing

  • Two projects in commercialization

  • Large commercial supply from modules has not started

  • Module manufacturing is primarily towards automotive segment

• Gas meters

  • No new orders for gas segment from Itron

  • Working on developing gas meter product with another customer

• Top 10 customers – 51% of sales

• Capex

  • Land acquisition to finish in 3-6 months. Capex to finish in 2 years from now.

  • No capacity constraints

• Paying 25L per month rent

• Borivali property – stuck up – discussion with builder ongoing. 1.25L sqft. 15% share.

• Margins low in Q1 due to product mix

• 20-25% growth guidance in FY23. Can get to 200cr revenue in next 2 years.

• Added 5-6 new customers

• CT business is growing

• Medical customer – expect revenue from FY24/FY25

• Hi-perm – 50%, shunts – 30%, assemblies – 20%

• Pricing is on Design – RM + value addition

• Back to back – RM booking.

• 80% business is from sensing, 20% from alloys/castings

• MagLab

  • They own design, PML manufactures

• Supplies to china and france – EV supplies

• Generally customers give forcast for the whole year

• EV charging – working on one enquiry