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General Information

  • Date of Earnings Call: January 29, 2025

  • Participants:

    • Mr. Jasbir Singh Gujral – Managing Director

    • Mr. Jayesh Doshi – Director

    • Mr. Satendra Singh – Chief Executive Officer

    • Mr. Bijay Agrawal – Chief Financial Officer

    • Mr. Nikhil Gupta – Head Investor Relations

    • Moderator: Mr. Aniruddha Joshi – ICICI Securities

Earnings Call Overview

  • Purpose: Discuss the unaudited financial results (consolidated and standalone) for the quarter and nine months ended December 31, 2024.

  • Revenue Highlights:

    • Q3 Revenue: 892 crore (up 24% YoY).

    • 9 Months Revenue: 2,900 crore (up 40% YoY).

Financial Performance

EBITDA and Margins

  • EBITDA Margin:

    • Nine Months FY25: 7.2% (higher than guidance of 7%).

    • Q3 FY25: 9.1%

  • PBT Growth:

    • PBT up 37% YoY for 9 months.

    • PBT up 144% YoY for Q3.

Exports and Geographical Performance

  • Exports:

    • Export stood at about 20%, primarily from the U.S. and Europe (specifically Germany).

    • Current challenges in European markets affecting growth.

Sector Performance

  • MedTech Sector:

    • Slow growth due to delays in product development but expected rebound in Q1 FY26.

  • Automotive and Industrial Clients:

    • New clients onboarded, expected significant business growth in FY26.

Key Financial Metrics

Revenue Composition

  • Consolidated Revenue:

    • 9 months: 2,862 crore (up 41% YoY).

    • Quarter: 869 crore (up 23% YoY).

  • Open Order Book:

    • 5,300 crore as of December 2024.

    • Composition: 30% auto, 38-40% consumer, 20-22% industrial.

Working Capital and Debt

  • Net Working Capital Days:

    • Currently at 64 days aiming to bring it below 60 days.

  • Debt Position:

    • Gross debt approx 685 crore; net debt 273 crore, primarily for working capital needs.

Strategic Insights

  • Focus on improving product mix to enhance margins.

  • Continued oversight on maintaining a minimum EBITDA margin of 7%.

  • Future guidance for FY26 projected growth of around 30-35%.

Government Policies and Future Outlook

  • PLI (Production-Linked Incentive):

    • Expected PLI benefit of Rs. 15-17 crore in FY25.

  • Possible impacts from government policies on manufacturing and allocation of resources.

Final Remarks

  • Management committed to long-term sustainable growth with focus on social responsibility and employee well-being.

  • Upcoming focus on efficiency, maintaining margins, and strategic expansions.