Pricol limited – OEM automotive

Pricol Q3FY24

New models launched by Hero MotoCorp uses pricol’s e Driver Information Systems, also used in Tata Motors EV Punch and also for ICE engines

Business: end-to-end solution for the customers starting from the design, development, manufacturing engineering

Financial highlights
revenue grown by 21.61% on a Q3-to-Q3
EBITDA margin stood at 12.51%

1. Working on E-Cockpit solutions with an undisclosed major OEM and launch likely by FY26

2. TFT clusters, market moving from LCD to TFT, refer ACMA India website for industry data

3. 2W is their bigger market segment in India (refer auto industry sales data as is Proxy to auto play), 66% rev from 2W, Commercial vehicle contributes to about 15% of topline, 7-8% from personal passenger vehicles & 10% revenue from Exports.

4. cluster business contributes to about 70% of the total revenue and the 30% comes from the non-instrument business.

5. Risks as imports raw materials, Red sea issue impacting logistics.

6. with increasing electronic cluster compared to instrumental cluster expects margins to improve, into the high margin leg of value chain.

7. Strategy: moving from product to more of solutions/ services business as soultions-based business has better margins compared to product based.

8. Revenue guidance for FY26 —> not sure about 3.4 to 3.6K guidance fulfilling dependent on these 2 product launch and EBITDA margin of 14%
   Disc brake and battery Mgmt system under development, in 1-1.5yr launching these 2, their rev will start from Q4 of FY25.

9. SIBROS partnership under testing, an Telematics which is the part of the connected vehicle solution but currently in POC stage.

10. The product manufactured by them a critical component in EV, Telematics track many vehicle parameters

11. Top customers TVS, Hero Motocorp, Bajaj, Royal Enfield, Honda, Suzuki, TAMO, Ashok Leyland, Volvo, Eicher

12. 4.5% rev spend on R&D for the last 5-7 yrs