Steel strip wheels –
Q3 FY 24 concall highlights –
Sales – 1110 vs 938 cr ( export sales @ 174 cr, up 180 pc from 60 cr )
EBITDA – 117 vs 108 cr ( margins @ 11 vs 12 pc, down 100 bps YoY )
PAT – 60 vs 44 cr ( due lower tax outgo )
Current manufacturing capacity –
Steel wheels – 20 million to go upto 27 million wef Jan- Feb 24
Alloy wheels – 3 million to go upto 4.8 million in a phased manner – capex is in progress
No of plants @ 5
Tata steel holds 6.9 pc stake in the company
Nippon Steel and Sumitomo Metals together hold 5.4 pc stake in the company
Mkt share in domestic mkts –
PV – 42 pc
MHCV – 61 pc
Tractor / OTR – 42 / 70 pc
2-3 wheelers – 30 pc
Export sales for first 9 months @ 505 cr, up 130 pc from 220 cr LY
Export destinations –
US – 70 pc
EU – 26 pc
RoW – 4 pc
Steel wheels demand expected to grow at 8 pc CAGR for next 5 yrs vs 12 pc for alloy wheels
Alloy wheel contribution –
By volume – 15 pc
By value – 28 pc
Some popular models getting their alloys exclusively from the company – Carnival, Salvia, Creta, Verna, Aura, XUV 700, Magnite, Punch, Tigor, Kiger. Company enjoys 50 pc share wrt Sonnet, Venue, Nexon
Company enjoys > 50 pc mkt share wrt EV models of Mahindra and Tata Motors
Company expects alloy wheels, steel wheels sales to grow at 20 pc, 4 pc CAGR for next 2 yrs
At present, the company is doing an EBITDA of Rs 256/wheel. As the contribution from alloy wheels increases, this EBITDA/wheel should only go up from here on
Expecting to clock 4800-5000 cr of topline in FY 25. This yr, company should do 4400-4500 cr on the topline
Company completed infusion of Rs 138 cr into AMW auto components ltd via NCLT process. AMW is also involved in the manufacturing of steel/alloy wheels
Low tax rate for Q3 due company shifting to newer tax regime. Henceforth – yearly tax rates to be at 25 pc/yr
Seeing some slowdown in exports due to the Red Sea issue. At present, company is at max doing Rs 50cr /month of exports ( ie wef Jan 24 )
Company to undertake debt reduction wef FY 25 as a lot of capex is behind them
Expect alloy wheel production at 3.5-3.6 million wheels for next FY
Disc: hold a tracking position, biased, not SEBI registered
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