Ranvir’s Portfolio

Sandhar Technologies –
Q2 FY 25 results and concall highlights –

Revenues – 989 vs 888 cr, up 11 pc
EBITDA – 104 vs 84 cr, up 24 pc ( margins @ 10.5 vs 9.4 pc )
PAT – 42 vs 28 cr, up 55 pc

Category wise revenue breakup –

2Ws – 62 pc
PVs – 17 pc
OHVs ( off highway vehicles ) – 14 pc
CVs – 2 pc
Others – 5 pc

Products wise revenue breakup –

Cabins and Fabrication – 14 pc
Sheet metal parts – 18 pc
Aluminium Dye Castings – 26 pc
Locking systems – 18 pc
Vision systems – 5 pc
Others – 8 pc
Assemblies – 10 pc

EV parts under development with tentative timelines for commencement of production –

Motor controllers for 2Ws and 3Ws – Apr 25
Battery chargers – Feb 25
AC-DC converters – Apr 25

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

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

Company has 07 operational JVs. 06 of them are PAT positive. Combined together, the 07 JVs make an EBITDA of 10 pc

Company is guiding for a topline of 4000-4100 cr for FY 25 and 4500-4600 cr for FY 26. EBITDA margins for full FY 25 and 26 should be around 10.5 and 11 pc respectively

Capex spends lined up for their FY25 @ 250 cr. Next year onwards, company is guiding for an annual capex equivalent to annual depreciation ( or thereabouts )

Company expects H2 to be better than H1 – both for 2W and construction equipment segments. As such, company generally does 40-45 of its business in H1 and 55-60 pc of the business in H2

The order from Suzuki 2Ws for smart locks has been delayed from Nov 24 to Jan 25. These r high value products ( vs the traditional mechanicals locks )

Gross Debt @ 620 cr
Net Debt @ 580 cr

Do not intend to breach Gross Debt figure of 700 cr. As such, the capex intensity should taper off wef next FY

According to FADA, rural demand has picked up in Q3 ( against general expectations ). Also ( as of Nov ), the 2Ws inventory has dropped to < 30 days at the dealer levels. This has happened after several Qtrs and is a very healthy sign for the Industry

Company has started supplying Castings, Mechanical locks to Honda 2Ws. Already doing business worth > 100 cr / yr with them. They r also slated to supply smart locks to Honda 2Ws as well ( after Suzuki 2Ws ). They expect Honda to also become one of their major clients going fwd

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