Certainly! Would be happy to join such meetings.

Maruti Suzuki –

Q4 concall and results highlights –

Revenues – 38471 vs 32214 cr
EBITDA – 5221 vs 3894 cr ( margins @ 14 vs 12 pc )
Other income – 1261 vs 850 cr
PAT – 3952 vs 2688 cr

Sales volumes – 5.84 lakh vs 5.14 lakh cars ( up 13.5 pc ). Export sales @ 78k vs 64k cars

EBITDA margins expansion led by – increased capacity utilisation, lower sales promotion expenses

Full yr sales volumes @ 21.35 vs 19.66 lakh cars ( up 9 pc )

Utility vehicles sales volumes grew by a whopping 75 pc @ 6.42 lakh cars in FY 24

Segments that de-grew include – Mini ( down 39 pc ) and compact ( down 4 pc )

Indian car mkt grew 8 pc YoY to cross 40 lakh car sales. India is now the third largest car market in the world

The shift in consumer preference towards SUVs continued in FY 24

The share of Hatchback segment is down to 27 pc, down from a high of 49 pc in FY 19

Share of CNG vehicles continues to rise. Now at 15 pc of total PV market !!!

EV and Hybrid cars currently at 2 pc mkt share each

Maruti Suzuki’s exports for FY 24 stood at 2.8 lakh cars. Company is also the largest car exporter from India. Exports grew by 10 pc YoY

Grand Vitaraa became the fastest car to clock 1 lakh car sales in the Industry

Company increased its solar power generation capacity from 26 MW to 43 MW in FY 24. Aim to take it to 48 MW in FY 25

Aim to cross 40 lakh cars / yr production target by 2030 ( almost double of current capacity )

CNG car sales for the company were around 4.5 lakh cars in FY24. Next yr, they are targeting a sales of 6 lakh CNG cars. Bulk of CNG sales come from Ertiga

First time buyers in FY 24 @ 43 pc of sales. Rest were replacement and additional car buyers

Committed to the Hybrid technology. Initially focussed on bigger cars like – Grand Vitara, Invicto. If volumes in these categories sustain, will invest in R&D to roll out Hybrid technologies in compact cars as well

Company did face supply challenges in the CNG segment in Q4 ( due some component shortage ) because of which some sales have been deferred. Current bookings / backlog of CNG deliveries stand at over 1 lakh vehicles – mostly Ertiga. Total – company level bookings currently stand at 2 lakh vehicles

Royalty payments to SUZUKI stand @ 3.5 pc of sales

Design – Launch timelines for new vehicles remain at 4 yrs

Disc: hold a small tracking position, biased, not SEBI registered

Have been studying BEW lately. Would love to discuss more on it.

This is not just happening in Banking sector but across many sectors. Managements for some reason are ignoring warnings by RBI, Regulators, Food and Medicine Regulators, Educational regulators assuming that, nothing will happen even if they keep ignoring such warnings.

In medical sectors, some companies have published ads in last 3-4 years and irrespective of concerns raised, kept on publishing mis-leading ads.

I think Corporate Governance and Ethics should be taken seriously by all sectors so that the old mistakes are not repeated in future.

Learning This Week: Drones

Many years back I started to write a weekly compilation of articles I found interesting. The main idea was to ensure I was disciplined enough to read enough across various domains to be able to compile the article every week. Over time I realised that I had benefitted immensely from it as it subconsciously helped me connect the dots in many areas.

After some thought last evening, I have decided to do something similar again. From now on, I intend to publish briefly my learnings on that topic every week. The idea is to keep exploring and learning new things. Topics will include business, industries, specific products or services, trends, macroeconomics, psychology, economic or financial history, etc.

I hope you enjoy this new series as much as I do.

What are drones?

Drones, also known as unmanned aerial vehicles (UAVs), are s mall or medium-sized objects that can be flown remotely and do not need a human pilot to be in it during flight. They are equipped with GPS, radar control, infrared, and high-resolution cameras, and can be powered by an electric, jet, or combustion motor.

What are the different types of drones?

India primarily manufactures the following types of drones:

Multi-rotors : These are the most common type, with 3, 4, 6, or 8 rotors providing lift and manoeuvrability. They are used for various applications like aerial photography, surveying, mapping, agriculture, and deliveries.

Fixed-wing : These drones have a more conventional aeroplane design with wings and a propeller. They are ideal for long-range missions and surveillance due to their fuel efficiency.

Hybrid : Combining elements of multi-rotors and fixed-wing designs, these offer advantages like vertical takeoff and landing with extended flight times.

Where are drones being used?

Drones are increasingly being used in many fields:

• Infrastructure: Surveying, monitoring construction sites, and inspecting bridges and pipelines. For example, Madhya Pradesh Power Transmission Company Limited (MPPTCL) has deployed drones to monitor 10,000 high-voltage towers.
• Retail: Inventory management, warehouse monitoring, and last-mile delivery. Some companies like Amazon have been experimenting with drone-based deliveries in the US. In India, some startups like Bengaluru-based Redwing Labs have launched an experimental trial using drones to deliver superior healthcare services to rural and tribal communities in Arunachal Pradesh.
• Agriculture: Crop monitoring, precision agriculture, and pest control.
• Security: Surveillance, disaster management and border patrol.
• Film and Television: Aerial cinematography and capturing breathtaking shots.
• Recreational: Drones for photography and exploration by hobbyists.

What is the market size and potential?

The market size of drones in India was Rs 29 billion in 2020 and is projected to expand further by 2030.

According to the EY-FICCI report, the drone industry has the potential to boost India’s manufacturing capabilities to approximately US$ 23 billion by 2030.

The government announced a PLI scheme for drones in 2021 for about 120crs.

By the end of March 2024, there were nearly 21,000 drones registered in India. During the same period, DGCA has about 10,000 certified drone pilots in the country.

The biggest demand for drones will come from the defence establishment. India is expected to spend $16.8 billion between 2023-33 for military UAVs as per GlobalData and the Indian Armed Forces are expected to spend another $17.7 billion in EW (Electronic Warfare) systems.

Who are some of the main players?

There are 57 registered drone manufacturers in India. The prominent companies, not all listed, in this ecosystem are:

• Garuda Aerospace
• Thanos Technologies
• Paras Aerospace
• Info-edge (Skylark Drones)
• Axiscades
• Astra Microwave
• Rattanindia
• Dynamatic

Summary

Drones, UAVs or RPAs (Remote Piloted Aircraft) are increasingly finding many applications. We have seen it used heavily in warfare and surveillance and in taking breathtaking camera shots. The use is going to increase manifold with more complex drones becoming available over time.