Pricol limited – OEM automotive

Few more con call highlights (in addition to above from @Chandragupta)

• Suffered supply chain issues. Lost revenue/profit and resorted to using expensive alternatives. The situation is now sorted.

• No long-term debt (last year it was 100 cr)

• Aiming to double revenue by Fy26 ( 25 CAGR). This will be achieved by launching different technology products.

• Q4 is generally better than Q3 as many OEM perform maintenance shutdown in Q3

• 65% of revenue comes from two-wheelers. Remaining from four-passenger cars/commercial vehicles as well as from tractors

• 65% of revenue is from telematics and 35% from actuation and control systems.

• Business from Caterpillar (water pumps) has started in the last six months and is stabilising. These are large water pumps (80kg), and first-time Pricol has done that. Hopeful for more business from Caterpillar.
  Aiming to increase the number of parts per vehicle
  -Hoping for margin improvement

• New products are EV focus. This is also aided by a partnership with Sibros as well as the Battery Management system.

• EV segment started this year. The current contribution maybe 5%, but hoping that they will be key drivers going forward

• Around 15-20% of revenue is contributed by new product launches (I am assuming management meant that products launched within the last 12 months)

• R&D investment is 4.5% of revenue, and it is the highest in the industry

• Sibros- Did some POC and joined displayed products in various exhibitions. This is still in the POC phase before it goes into primary production. This partnership is offering an integrated solution which captures vehicle information and displays it on dashboards. Expecting production to start for different products in Fy24

• Capital lights as Pricol has already been manufacturing telematics for the last ten years.

• BMS – Work in progress.

PDF Con Call Transcript