- Export Outlook is very optimistic for FY24/25. Expected to achieve 600 cr & 1000 cr revenue from export in FY24 & FY25. They are saying that exports have bottomed out in Q3FY23 and now will see an uptick. US has started to show demand and they are talks for exporting alloy wheels in Europe and two big OEMs. Inventory has run down and energy prices are cooling down.
- They are increasing alloy wheel production capacity as demand has started to pick up by 1.5 million units p.a. This will operationalize in June CY23.
- EBITDA margins are expected to increase due to change in product mix. Increased share of revenues from Alloy wheels and Exports will help improve margins.
- Top line expected to 4100 cr in FY23 (out of which 3035 cr has been done until 9M so seems achievable). FY24E top line is 5000 cr.
- The tax benefit due to the utilization of MAT credit is expected to materialise in Q1FY24, thereby lowering the effective tax rate to 25.2% from the existing 35% in Q3FY23.
- SSWL is entering a new business of a proprietary technology held by Israel’s Reddler Technologies. This will help them enter the motors and controllers business. Will also help improve margins. They will also be able to supply assembled powertrains to OEMs.
- Capex: FY23 Capex for full year is 150 cr. FY24 is 150 cr out of which 100 cr is on alloy wheels, 20 cr on EV controllers and 30 cr on maintenance. In FY25, they will incur capex of 100 cr in Aluminium Castings Business.
- Adjusted EBITDA removing inventory gains/losses is 21% in 9M YOY.
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