FY2023 AGM Notes
- Financials:
Revenue 650cr
Ebitda 39cr
Pat 11cr
- Non-Auto Business Development:
Development orders received from the railway business. and will get converted into bulk orders.
Non-auto business to contribute 10% of total revenue in FY25.
- Technological Advancements:
Addition of 2 cutting-edge cutting machines (2D and 5-axis laser) to cater to customer proto requirements.
Pune facility upgraded with ultra-modern CNC and a dedicated press for tool tryouts.
- Operating Efficiency Improvements:
Operating efficiency enhanced through the use of a decoling machine, resulting in a cost saving of Rs 2 per kg for sheet cutting.
- Business Opportunities:
Indian Railways: Opportunities in coaching manufacturing for side walls, end walls, roof, under frame, air ducts, and vents.
Child Parts: Involvement in coach interiors, small assemblies, and aluminum extrusions.
EV Industry: Focus on battery components, including casing, brackets, enclosures, and housing.
White Goods: Opportunities in appliance cabinets, door and lid components, control panels, and AC panels.
- Financial Projections:
Company aims for 10-12% topline growth and an EBITDA of 8-9%.
- Challenges and Strategies:
FY23 challenges include RDE regulation changes and volatility in raw material prices leading to demand fluctuations.
Operating profit down by 1% due to higher raw material purchases each quarter.
Plans to convert existing conventional lines to robotic for significant cost savings.
Planning to establish a 7.5 MW solar park by the end of FY24 to reduce power costs.
- Expansion and Business Opp:
Setting up a manufacturing unit in Sanand, Gujarat, for electric, IC, and CNC engine passenger vehicles. Operational befor end of FY 2024.
TML Tata Motor Limited expected to bring 10 more EV, ICE, CNG variants, with awarded business of 250 cr in Sanand and more expected.
Mahindra planning 15 different EV and PV variants, with an estimated business of at least 300 cr for the next 5 years.
Ashok Leyland gearing up for five new EV launches in the next 3 years, expecting 100 cr revenue in the next 2 years.
Hyundai, after acquiring GM plant, preparing for 5 EV variants with expected business of 75 cr for the next 3 years.
- Customer Mix:
FY23 Customer Mix: Tata Motors and non-Tata Motors. 71 / 29
Expected FY24 Customer Mix: Tata Motors and non-Tata Motors. 68 / 32
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