Ranvir’s Portfolio

Sandhar technologies –

Q1 FY 25 concall and results highlights –

Revenues – 913 vs 829 cr, up 10 pc
EBITDA – 90 vs 75 cr, up 19 pc ( margins @ 9.85 vs 9.10 pc )
PAT – 29 vs 22 cr, up 35 pc

Geographical breakup of revenues –

Standalone – 74 pc
Indian Subsidiaries – 13 pc
International Subsidiaries – 13 pc

Product wise breakup of revenues –

Locking and Vision systems – 24 pc
Cabins and Fabrications – 14 pc
Sheet metal components – 18 pc
Aluminium Dye castings – 26 pc
Assemblies – 10 pc
Others – 8 pc

Segment wise breakup of sales –

2W – 60 pc
PV – 18 pc
OHV – 15 pc
CV – 2 pc
Others – 5 pc

Schedule for beginning of mass production of EV components –

Motor controllers –
250 W – Aug 24
2000 W – Sep 24
6000 W – Dec 24

Battery chargers –

550 W – Sep 24
750 W – Started in Jul 24

AC-DC converters –

180 W – Dec 24

Company is localising a lot of the parts that go into these EV components. In medium term, company expects margins in these EV products to be as good or better than company level margins

Q1 is typically the slowest Qtr for the company

All of company’s JVs have turned EBITDA positive wef Q1 FY 25 ( including their plants in Barcelona, Mexico, Romania )

Company’s new plant at Pune for making Cabin and Dye Castings to start commercial production by Sep 24. This segment of company’s business is growing rapidly. Hence this capex was urgently required to keep meeting the customer demands

The EV products that the company intends to commercialise this yr should give them 5-10 cr revenues this year. Ramp up in revenues is only expected wef FY 26

The high inventory levels in the system that exist in PVs these days is not the case with 2-Wheelers. The offtake and volume growth in 2 Wheelers has been much better

Company expects revenues from smart locks ( new product line ) to start flowing in from Oct, Nov 24. Company will start supplying Suzuki and Honda. Content per vehicle in case of smart locks is much higher ( each unit should cost @ around Rs 4-5k )

Net debt on books @ 550 cr vs 592 cr on 31 Mar 24. Aim to reduce debt to below 500 cr levels by end of FY 25

In Q1, there was a slowdown in construction equipment segment. From Q2 onwards ( as this segment picks up ) there should be better topline growth for the company

Capex lined up for FY 25 is aprox 250 cr. Capex intensity is likely to reduce wef FY 26

Aim to increase EBITDA margins to around 10.5 pc in FY 25 and 11 pc by end of FY 26

Company expects the number of 2 Wheelers with smart locks can be in double digits in terms of Mkt share over a 2 yr period

Sandhar’s Mkt share in 2 Wheeler locking system stands at 70 pc in the domestic mkt

32 pc of company’s revenues come from TVS, 19 pc from Heromotocorp, 8 pc from JCB. These are company’s top 3 customers. Other important customers contributing 4-5 pc of sales each include Honda, Bosch

Expect the smart locks EBITDA margins to be in line with the mechanical locks business ie @ 13-15 pc EBITDA levels. But the value of business per lock is expected to be 6X to 10X

Opinion : business momentum looks strong. Should result in good to great topline and bottomline growth

Disc: holding, not a buy/sell recommendation, biased, not SEBI registered