Here are some of the updates from Con-Call Q3 FY24
Business Highlights:
- Total Capex Expenditure for 9 months: INR 255 Cr
- Full-year FY24 Capex: INR 470 Cr
- AMW has become a fully-owned subsidiary.
Other Updates:
- Maruti and Hyundai are entering an annual shutdown to clear inventory.
- Alloy wheel export projection for FY24-25: 2.4 to 2.5 lakh wheels, generating 100 Cr in sales.
- Anticipated 70-80% growth in volume for the next year.
- Target for next year’s export sales: INR 180 Cr.
- The deal with the Israeli company is on hold due to the ongoing conflict.
- In the EV segment market share, Tata holds 63-65%, with Hub Motor wheels accounting for almost 60%.
- Regarding EBITDA margins on the export side, there is freight volatility due to the Red Sea conflict, leading customers to request a CIF basis. This has resulted in a 20 Cr increase in topline, necessitating payments to vendors accordingly. Raw steel prices have increased by 2 rupees/kg.
- Margin profile is expected to improve.
- Production for the Knuckle business is set to commence from July '24 to August '24.
- Future EBITDA margin expectations: Current 256 rupees per wheel. Due to a favorable mix, this is expected to continue increasing.
- This export will be 500-600 cr.
- The next year’s target will be 700+ cr.
*Revenue growth from EV - 30K-40K wheels for Two-wheelers/per month. - On Debt - Overall Interest rates moved up which has an impact on the interest part, and the current year’s borrowing increased due to advancing the capex. The repayment will be faster starting from the next year.
- Reason for low Tax rate - shifted to the new regime hence it is low. The tax rate will be 25% going forward.
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