Q3 FY24 Highlights

• On the revenue from operations, we have grown by 21.61% on a Q3-to-Q3 comparison and our EBITDA has grown by 34.49% during the same period.

• Our EBITDA margin stood at 12.51% from revenue from operations at 5,571.91 million. For the nine months of FY’24, our EBITDA margin was at 12.55% and the total revenue was at 16,419.57 million

• We are working on E-Cockpit with one of our major customers. The SOP is likely to start by FY’26.

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

• Segment-wise breakup- Two-thirds of our revenue coming from two-wheelers and 15% coming from the commercial vehicles and 5% to 7% comes from the personal passenger vehicles and the remaining coming from tractor and off-highway segment

• Exports- We stand at 10% of the total revenue coming from export, primarily because there has been some slowdown both at the US and Europe markets and we hope recovery to happen from next year onwards

• Red Sea crisis impact- Because of the Red Sea issue, the logistics time has gone up by a couple of weeks because it has to be rerouted. So, what we’re doing is, we have started that rerouting and now it has come into normalcy. So, we are not taking any issues currently because of the Red Sea.

• The margins will not be impacted due to the increasing use of electronics in our instrument cluster, rather the margins will go up. If you see that more and more electronic clusters that we have been having since 2020, our margins have been going up. This is due to our comprehensive end-to-end solution, which includes design, development, manufacturing engineering, and tool production. This comprehensive approach not only improves our margins but also ensures that our products meet the customer’s expectations, thereby enhancing our overall business performance.

• We are moving from a product-based company to a solution-based company. This is what we have explained in the few earnings call also. If you are only doing a product with electronics, then your margins will not be very high. But if you are moving into like a technology product giving solutions to the customers, your margins are not under threat.

• Disc brake and battery management system are something which is under development. In the next 12 to 18 months, we would be launching those products for a number of EV customers across the various two-wheelers, which will not only include new age EV which is going to be the primary focus and also to our traditional OEM. Revenues should start from FY 26 onwards.

• Exclusivity on SIBROS? – It is a complete bucket of solutions that we offer to the customer as an end-to-end connected vehicle solution and SIBROS would be a part of it. So, we have the Driver Information Systems connected with the Telematics solution and have SIBROS for the cloud. So, it will be a combination of everything. So, if you ask me exclusivity, it is not there, but if you see this kind of connected vehicle solution whatever we’re offering to the market, I think we’ll be rather very exclusive in whatever solution we’re giving to the customers

• FY26 guidance depends on customer launches, order book is quite strong , just that end user industry needs to be tracked

The chip designer’s CPU share grew a half point to 31.1 percent in 2023 while Intel’s decreased as much to 68.9 percent when counting total CPU shipments between both companies last year, according to CPU-tracking firm Mercury Research.

Accumulation going on ! Once it starts moving within no time it will touch it’s All time High !

Finding Multi-Bagger Stocks: What, How and When | The Wealth Formula

MUST WATCH. I FIND LOT OF COMMONALITIES WITH MY INVESTING STYLE TOO. LOT OF ESSENTIAL TICK BOXES FOR A GOOD CHECKLIST IN ABOVE INTERVIEW

You make a valid point @Kaustav_Gupta

Perhaps I did not put my point across properly. The price differential between the landed cost of captive iron ore & its market price amounts to the extraordinary profits that mining Co.’s like Godawari are assured of. Over the last several years starting 2018, which include the Covid years, the average operating profits of Godawari has been around 24%. Unless there is a drastic/ unprecedented fall, by & large mining Co.’s have enough margins to absorb the shock. Further, if there is indeed such a fall, then iron & steel prices too are likely to fall drastically, thereby wiping out profits for the steel companies. My limited point is that captive mining Co.’s in India with long mining leases still to go are better equipped to handle volatility.