RACL Q1, FY 24 concall highlights -
Company Infra -
02 manufacturing locations
03 warehouses in Europe
01 corporate office at Noida
Products -
Transmission gears and shafts, sub assemblies, precision machined parts, Chassis parts, Industrial gears
Product Application areas -
2,3 & 4 wheelers, CVs, Agri equipment, Off road vehicles, Industrial gears
Q1 outcomes -
Sales - 89 vs 80 cr
EBITDA - 22 vs 18 cr
PAT - 11 vs 8 cr
70:30 pc sales breakup - Exports:Domestic sales
Q1 is generally the weakest Qtr-due holidays in Europe
Company’s GMs are industry leading as the complexity of products and value addition by RACL are high
Company is already supplying to most premium bikes in India. Company is the sole supplier to TVS X- electric scooter
Also going to be the sole supplier to a new super bike to be launched in India by next month
In medium term, company to maintain EBITDA margins between 22-26 pc band
Even the Yokes and Suspension parts produced by the company are very high on complexity and value add
At present none of the Yokes are used in Motorcycles in India. These are very high end Yokes being used in European 2 wheelers
3 yrs back, company’s share of revenues from 4 wheelers was zero. This yr, company hopes to do 10 pc revenues from 4 wheelers
Company is only supplying to high end OEMs like BMW, Porsche, Mercedes, Aston Martin etc
Value of company’s transmission parts / TVS X electric vehicle is aprox Rs 10000
Post Covid, Company’s order wins have increased in Europe due China + 1 strategy being followed by OEMs
Intend to keep growing the company at > 20 pc CAGR for the foreseeable future
Aim to hit topline of 470-500 cr in FY 24
Company likely to win one big project in a new segment. Details to be known by next Qtr
Capex projection for FY-24 to 27 at 250 cr
Min asset turn expected on this capex is 1.3-1.4 with an ultimate goal of hitting asset turn of 2
Disc: holding
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