Financial Results and Business Strategy Discussion - Endurance Technologies

Mega project incentive in quarter 4 of rupees 23.3 million for fi 24 the full Financial year 524 a Consolidated total in total net income grew by 16.7% and was rupees 103,2 16486 million as compared to rupees 888494 73 million in f23 this was the first time that endurance technology is cross the 10 cross 100,000 million Mark consolid IA grew by 30.7% and was rupes 14,113 5.99 million as compared to 10,869 million in fi23 Consolidated IA margin was at 13.7% the net profit grew by 41.9% and was 6,8 4.88 million at 6.6% this included the Mah State mea project incentive of R 79235 million in fi 24 a standalone total income grew by 16.6% and was rupes 79247 Million as compared to rupees 67,900 7 million in fi23 Stand Alone IA grew by 30.8% and 10,557 183 million as compared to rupes 87434 million in financial year 23 we had a IA margin at 13.3% stard net profit grew by 43.7% and was rupees 58779 3 million at 7 .4% this includes the Marat State Mega project incentive of rupes 79235 million there was no net debt and there was a Consolidated positive cash available which has crossed the rupes 5 billion mark and it was at rupees 5.44 billion the detailed financials are available with the stock exchanges and on the endurance website I would now like to share certain key points for the financial year 524 77% of a Consolidated total income including other income came from Indian operations and 23% came from a European operations in India in fi 24 rupes 11,980 million of new business was won from oems other than baj Auto which included Royal Enfield CPS hero motoc cop tataa Motors hmsi Jaguar Landover Hyundai Mahindra Tata punch power train and Suzuki this business win of rupees 11,980 million constitutes 8,248 million of new business and rupes 3,732 million of of of replacement business this rupees 11,980 million of business will reach Peak sales in fi 27 the total fourwheeler business win in fi 24 is rupees 2,810 million which is 23% of our total auto wins in F 24 these orders are mainly from Tata punch power train tataa motors Mahindra Jaguar Land Rover and Hyundai I would also like to mention that we are in discussion for rupees 18,44 Million worth of request for codes from since fi20 in India rupees 4,857 million of business has been won out of which rupes 29,36 million is new business and rupees 11,000 551 million is replacement business out of rupes 29,36 million new business rupes 26,900 million is expected to reach Peak sales in Epi 27 and is mainly for suspension castings and braks EVS business win has been rupees 5,32 5,320 million till date and it's growing the business win is laring for brakes aluminium alloy wheals and and suspension the rupees 5,320 million sales will reach peak in fi 26 the total business win for electric vehicle to date is rupes 7,145 million these orders are mainly from hmsi which is Honda scooters and motorcycles ether energy baj Auto hero electric re electric which is Amper T motor bounce and aptive this is apart from the rupees 3,785 million business win by a subsidiary company Maxwell the significant new business wins in this year are I mean the wills in f24 are we have won rupees 719 billion of new business from tbs in fi 24 which included rupees 39 million of inverted front forx and rear motor shocks suspension business and also rupees 404 million of the PBS Rider and hlx bikes front for and rear Sher business which sop is planned in August 2024 we have also won rupe 1750 million of new business from Euro Moto in f524 which includes inverted front for H business win of rupees 240 million and Sops planned in June 2024 the break assembly new business of rupes 263 million and this sop has already started in April of 2024 and the front and rear shock absorber business of rupes 1247 million and this business has also started we have run Suzuki's new scooter front business of rupes 253 million this is an addition to the rupees 14400 million front for business already won the previous year and the SOP of both will be in quarter three of this financial year we also won the the Honda scooters and motorcycle break assembly new business or 294 million and the SOP is planned in quarter three of fi25 we have won Royal np's alloy new business of rupes 961 million and sop has also started we won tataa motors's punch power train Four wheer aluminium casting new business for rupees 1,26 million rupees 582 million sop is already started for its first project and rupees 444 million second proposed project sop is expected in quarter three of this financial year the new 35 di air suspension inverted front forks for Supply to K and Austria will start by quarter three of this financial year with the help of KM technology from aalu aabad plant the value of the business will be rupees 400 million perom and will be exported to KPM austrialia we've also won rupe 876 million perum business from for aluminium castings which Sops is is in quarter three of f27 hmsr has awarded as two new businesses in quarter four of f524 which are 100 cc motorcycle fund for re shop absorber business or rupes 343 million perom which sop is in February 2025 we also W the first EV scooter front for re shopable business which sop is also in quarter four of this fincial year for eved scooters we are ramping up our sales to 240,000 sets perom of aluminum castings which are required for electric vehicle battery packs and motor housings the total value will be rupees th000 million perom which has already started and will reach Peak sales value in this financial year for ed3 dealers we have run new business for case transmission and Factory housing casings of 200 million perom which will peak in fi 26 our customers recognize us as a trusted and capable partner in the value chain in terms of both Technical and financial strengths the electronic Vehicles Market offers significant opportunity for growth in future to the auto component sector as you know endurance has executed a shared subscription and purchase agreement for acquiring 100% of equity share capital capital of of of maximal energy in a phase manner we have last year increased our Equity state to 56% in Maxwell as per our agreement Maxwell is in the business of advanced electronics particularly in the battery management system for two wheer EVs and for automotive and two wheer battery [Music] packs at Maxwell vm1 BMS business battery management system business of 793 million in f24 and have a p line of rfqs of more than rupees 1 billion till dat since fi 22 rupees 3,785 million business has been won by Maxwell despite the latest strengths in the EB Market we believe that these orders will help us achieve sales in excess of rupes 2500 million in fi 27 with the current order book order Pipeline and Technical strengths of both endurance and maxal we are confident of achieving our goals in this Advanced electronic space as the dis break assembly business is growing with addition of customers like baj TVs Royal NP Yamaha hero motop AA as well as hmsi a second plant at Balu arabad has been set up for this increase in volumes and has started sop last year we have already started the Disc break assembly supplies to hero Moto cop from April 2024 and the supplies to Honda scooters and motorcycles will start from quarter three of this financial year with this new plant we have already reached a run rate of Disc break assembly volumes which have increased to now 6.2 Million numbers perum and break disc at to 2 8.1 Million numbers pan as you are aware the supply of two wheer ABS assemblies to baj Auto and Royal Enfield have started we have reached a run rate of 400,000 ABS assembly spanel as you are aware the competition is mainly from Bosch and Continental which controls a major market share in the Indian ABS two wheer Market of approximately 3.5 million number motorcycles which needed per anom we are know in the process of supplying a dual Channel Abs from July 24 2024 today we are going only single Channel and we have scaled up additional assembly Lines by increasing the capacity by another 240,000 ABS assembly spanm which has taken now the total capacity to 640,000 ABS assembly spanner we are further planning to increase this capacity to 1.2 million single and dual Channel ABS assembly spum for the second half of fi 26 we've also as mentioned earlier in March 23 started manufacturing the ABS vales which is not only a technology component but has helped us to substantially lower our costs due to increased orders in alloy deals from baj Auto Yama India TBS and now Royal Enfield we have added a new plant as you know in July 22 at Chakan to help increase our supplies to 4.5 million Wheels per which we've already reached now with the New Order wheels from Royal Enfield and PVS we are now expanding to supply and and 5.5 million wheels perum and the SOP has already started for April 24 for Royal and PVS will start from from this from from this from the end of this first quarter of fi25 as far as Europe is concerned till dat in fi 24 we have won 30.8 million euro of business mainly from the Volkswagen group including pchain Audi and Mercedes-Benz in the last 24 months out of 115 million euro order 61 million euro orders are for the growing battery EV business and 35 million euro are for hybrids in 2023 the E battery EV penetration in Europe has been at 15% and hybrid at 33% we are therefore well placed in terms of securing orders for this growing segment I would also like to point out that endurance both in India and Europe is actively pursuing its focus on gaining access to new technologies and focusing on new products organic and inorganic growth at endurance our future Focus will be on the following projects for a better product mix and better profit margins increase our four-wheeler share of Consolidated business from 25% now to 45% by fi30 this increase is going to come from aluminium castings and aluminium forgings as they are going to be increasingly used for lightweighting as we can see now and also from proprietary products through Acquisitions joint ventures and Technology agreements we will be focusing on increasing our share of business for the premium 150 cc and above for our brake assemblies and abs suspension as well as clutch assemblies with upgraded product Technologies and process we will focus on increasing our business for electric vehicles with existing and new products we will also increase our embedded electronic business by becoming a significant player in the future for battery Management systems and electronic products required for EBS and other applications we will focus on non Automotive business which is large opportunities es especially in in in aluminium castings we are now in the process of setting up a new plant in the 11 acre land at oric aabad 17 kilometers from the aabad airport where the SOP will start in quarter one of fi 26 which is the next financial year where our Focus will be on four wheelers including four four four fourwheeler e parts and non Automotive aluminium casting business the total KS is expected to be rupees 4,9 million this should be spent in stages from now to March 2028 with a sales expectation of rupees more than 5,000 million perom a focus also is to reach 10% of India sales in our aftermarket business in India by fi 28 in fi 24 aftermarket sales grew by 6.92% from rupes 43109 million in the previous year to rupees 4,6 9.36 million in f24 with three more countries added to our Network we are now exporting our aftermarket parts largely held by the increase in our volumes and the Improvement in in the product mix uh at the same time there has been approximate 200 million impact uh I mean a gain impact due both on the client as well as on the vendor side because we have got a one-time gain of rupes 200 million but uh largely it has been because of the good volumes we have seen and the product mix has been improving you know every quarter so so so that's the reason for it okay so noops there t I just saw that this 200 million of incentives uh 13 and half% margins are still I mean driven operationally and no one there well well I I'll only tell you that we'll continue to do our best I understand you don't like for margin but just there Just sh jump so is directionally mix is improving and there's recovery in the as well so that should also Aid margin recovery process I understand that secondly if I look at the European business so there has been uh the new auto has slowed down considerably in last nine months is this largely reflection of slowing easy sales in EU or there's something else which we seeing here GES can you repeat your question because the audio is somewh unclear yeah very unclear from your side I could understand it but mimo could not understand it sorry is it better now question on Europe so question is on Europe about the new AOG have slowed down considerably in last nine months uh so what are the reasons for thats have slowed down slowed down yeah so in the previous Financial year we acquired only 41 million of Euro business I agree with you that is L to the previous year but considering the situation into the market from my point of view is a is a very important result also because we acire business for the Strategic project of Mercedes and volksvagen so the total acquisition reached 250 million of in the last five years and so more or less the total T of endurance overseas and so I'm really Optimist for for the future and you will see an important increase of volume in the next financial year due to the business acquired in the previous three four five years okay okay and M on the European business margins are also flat on year on-ear basis despite sharp decline in energy cost so uh what led to offset of this benefit of lower energy cost on margin side yes so AR not FL and now I explain to you why if you analyze the last quarter of previous Financial year we Clos with 17.8% of a b that that is true is the same of the previous Financial year but please consider that in the previous Financial year January March 2023 we receive we had from the government 45% of grant for the energy cost and also in the previous Financial year we receive uh money from the customer for the impact of energy cost of the total previous Financial year and so if you compare the profitability of the previous quarter compar to the prev fin Year from my point of view we are gr we are growing more or less 2% of a bet compared to the previous year from the industrial point of view we are doing better compared to the previous year in fact if you analyze our profit and loss you will see a reduction in the material cost of 12% compared to the previous year more or less with the same turnover and increase of other expenses of 26% the material cost is due to the fact that we are producing a lot of part only Machining and as you know in this case the profitability is higher compared to the rart okay and the in the other expenses the increase of of the previous Financial year is link to the increase of energy cost due to the fact that in the previous Financial year we had this Grant from the the government and the customer so the profitability in this s was very good compared to the previous Financial year speaking about the total Financial year we with 16.1% of aidda compared 14.5% of the previous final year and please consider that even if the energy go down in important way we are continues to pay more or less the double three times compared the preco situation and this affected our bid of more or less 1.8% and so if I if I do a restatement of the bid in this moment Europe we have more or less 17.9% 18% of a b got it got it this is quite helpful thanks I'll follow back in few few for more questions thanks thank you the next question is from the line of Muk Mana from Anand rati please go ahead yeah thank you so much sir for opportunity and congratulations on the strong results uh just uh just on the incentive part will there be any incentive for25 sir like last qu we saw can you repeat the question the audio is not no he's saying will that inceptive be also in fi25 the mega yeah this I'll explain um see we are looking at the incentive scheme of fy13 to fy19 so in the last year we have booked close to 79 crores as incentive so in the current year that means fi 2425 under Mega project incentive scheme of 20 2013 to 19 we expect to book something around 30 crores plus minus in that region so I hope that answers your question got it and it would be like uh spread out equally sir across quarters no normally the way we see as you know this incentive is paid by government based on our sgst paid sales in the state of Maharashtra so therefore uh this appetite is normally consumed over one or two quarters so it I don't expect it to go go beyond uh go beyond uh second quarter but uh also there would be incentive for 2019 to 24 scheme as and when we apply as and when we get approval but that is not within the perview of this discussion right now got it sir uh just on the yeah next next question is on the new capacity which announced for the four-wheeler and Nona went of of 2 million of potential any order where what kind of order WIS we have already won for the plant sir see this is an activity we started actually at the beginning of this calendar year in January 2024 I cannot disclose that much to you in order WIS it won't be correct at this stage but let me just give you just a brief idea what we are doing these are basically for four pillar Parts with EV focus and a technology Focus this also has non-auto Parts could be for segments of 5G 6G ATVs utvs 5G Telecom like I said and uh and other industrial areas the these these will have special I would say uh special pro pro processes it will have a it'll have automation very good surface stre ments and and there will be self-sufficient sales with minimal handling because largely this project will be for exports so I'll just leave it at this but definitely to answer your question already we have auto wins for this and that's the reason we have committed to this project which will start in quarter one of fi 26 uh and uh already the building the construction has started so as you know our strength is in aluminium diecasting and machining so we are very well equipped with our own engineering skills and tool room and over 35 years of experience in this line to explore these new opportunities we I've already told you about the four-wheeler focus and the non-automotive focus so this is in line with that kind of a focus and strategy which we have for the future so this helpful sir uh so on the kic side uh what kind guidance is there for the by 25 and 26 see see the kex will be see we see we we have done a kex of about 3,833 million in fi 24 which was 81% for growth which included building plant machinery and dice rest was of course in quality process efficiencies there was also routine PEX and and then there was R&D next year the figure should be similar to about say 4,000 million rupees uh we don't at this stage unless there are new opportunities this is a very Dynamic situation so practically we see we we we will say that we spend a similar kind of money because we have this new plant also coming up at oric plus we have very very key investments in our growing business of brakes alloy wheels as well as suspension so uh so that's the kind of figure we I talking about got it sir and just lastly sir uh any growth outlook for the Disc break and alloy for fi25 sir good outlook sir for two key segments the capacity in alloy bees of 5 and a half million I have mentioned and I can only leave it at this there are huge uh huge not only potential but uh uh large requests for increasing the alloy BS sales so so we're looking at it in a very serious manner as far as alloy BS is concerned and your second question was on brakes brakes is the fastest growing segment we have you know and the requirement is just uh I mean it in fact in in fact our our head for break was telling me in April itself we have crossed I mean uh I mean the volumes based on a plan which we had for our budget so because because we have a huge requirement to fulfill we have taken large number of orders so so so so breakes is really growing I would say very very well got it sir thanful sir thank you so much thank you the next question is from the line of raot from P equities please go ahead yeah hi uh thanks for the opportunity so first question is if I look at your slide eight where you talk about uh EV order wins for India they seems to have slowed down drastically in fi 24 I can understand it is a function of the industrial activity also so what are your customers looking at and uh how are you planning to address this if the uh for the medium term see the way we look at is we follow the I mean I mean our customers and their requirements we ensure that we are connected with all the uh OEM speci es in the two and three-wheeler space and of course also in the four-wheeler in terms in terms of aluminium castings and looking at their plan whatever is their business plan or uh uh you know so we basically do our best to take orders based on that definitely the fame to subsidy in India uh where a large part of the subsidy went out was taken away I think in July 2023 has definitely affected a lot of two wheer EV oems who were lead lead who who were like in the top bracket in the end now we'll see how it plays out in the future I can only tell you that say we talk about say you know Honda you know say okay say we talk about any two wheer OEM which is going into you know it's it's you know Ed platforms we are if we are not in the first we are at least there in the future platforms and with some we are right from the first platform you know so I would say that if you see that the orders have lowered it's it's a function of how the industry is doing but nowhere are we going to lose any opportunity on the EV front because that's a very large growth area for us and uh also our Maxwell business is a lot to do with e your is your question on India or Europe uh I had on India I wanted to follow up on the Europe also I think so I can only tell you that we are highly focused we are connected to all the oems and uh and and and we are really doing our best we have taken uh good amount of orders and um of course sometimes the LOI show lower volumes and the volumes increase the value will increase so we'll see how it goes but we are not leaving any stone unturned to take orders so this is to answer your question this is a function of ke industry and and how it's functioning you know sure and the second related to India business or stand alone uh if I to adjust for incentives uh still the gross margin expansion is uh pretty comfortable and seems to be the raw material has come down for the first time from that 66% to 63% uh do you feel structurally you are back in that uh zone or it's a oneoff and hence you still have to work on it to get the gross margins back to the older days see see the see the whole question which which which happen is that why I don't like to come you know talk about the percentage of gross margins or aita margins is because it all depends like I mentioned earlier we are focusing on product technology and ensuring that the product mix is increasing in all the areas and we are looking at new areas which has helped a lot what work we did year year and a half ago has paid off in quarter 4 at the same time also I mentioned about the volumes you know as you know we are 80% in India on with with you know two two wheelers which I would say in the last two quarters has done very well and what I'm and what I'm seeing in April doing very well so the question is the product mix and volumes will definitely help in our IA margins but I also mentioned there was a rupees 200 million onetime gain which has come both on the vendor side and the client side so that that may or may not come in future you know so I can only say that we will do our best uh to see that we do our best on the margins you know we'll continue to do our best sure and uh coming to the uh European side on the EV front uh I think there has been a lot of recent noises about slowdown in the EV penetration so considering that how are you looking at your order book wins to be consumed this year one second do you see any opportunity for any uh m&a in this space in the medium term to add considering this confusion in the marketplace okay so uh in Europe as you from September 2023 there was an important reduction of registration of electrical vehicle due to the fact that a lot of countries sto the incentive In This Moment unfortunately without incentive is very difficult to sell a car with a leverage of price very high compared to the General market and this is the reason why uh they are waiting everybody are waiting the new election in Europe to understand which will which will be the situation in the future as you know a lot of OEM in the last period of time officialized that they will continue to invest also in the internal condusive engine speaking about endurance from my point of view we are in a strong position due to the fact that we have already installed production capacity for the electric project so starting from April of this financial year we are ready to reach more or less 50% the total Peak capacity of the business already acquired for the electrical vehicle and please consider that in the previous Financial year we did 62 million of yearo of investment in order to install this poal capacity maintaining the the the the cash free with so we it means that we invested we spend this money with our cash profit speaking about the future 12 months in this moment we have seen an important increase of internal conduc engine this is true in the first quarter of this financial year there was an increase of 2% also in the diesel technology and 5% in the I technology of gine but as you know we are thinking about rise of product where we have production capacity and so let me say in this moment we are seeing which will be the situation of the market and please consider that in lot of our business we have a take or pay contract with our customer so it means that we are protect from potential slow down of volume in the electric compared to internal comu my personal opinion is that is only a period of time uh in in the future when the government will in in investing important way infrastructure the electric vehicle will contines to grow in in in the General market speaking about the opportunity and In This Moment unfortunately there are a lot of company in bankruptcy due to the fact that the strategy of the the last period of time in the last five year was to focus in few supplier for the electric development and so there are a lot of opportunity and Frankly Speaking we are considering possib possible acquisition in order to continues to grow also because we can't contines to grow from Green Field we need to reforce also our team our knowledge our people otherwise we can't uh become we can't grow in important way in the future years and so we are ready for potential acquisition sure thanks and all the best thank thank you the next question is from the line of agal from feom family office please go ahead yeah hi sir thanks for the opportunity and congratulations on the great set of numbers so uh I just wanted to know about the trend in the aluminum prices and the Outlook uh going ahead in the aluminum dting see uh what is happening in India uh unfortunately or fortunately uh the aluminium alloy prices are not dictated uh you know by lme the the you know the London Metal Exchange it is dictated by the availability of the scrap which is required the aluminium scrap which is required which largely is also imported now I believe that because of what I hear is because of the sea frates uh you know going up uh because of this crisis of Israel and Hamas the rates keep going up and down you know so the way so for me to say that EX L how the trend will be I mean my answer would be that it should go down Alum no it is on the aluminium alloy pricing right is what you're saying no no I was saying on the aluminium diecasting part okay so sorry so so what was the question again uh the price is of aluminium right now and the outlook for the entire aluminium diecasting segment for our company yeah so in fact aluminium die casting is I would say one of our you know strongest segments and U that's the segment we started with in 1985 we are very strong in terms of engineering our tool room our plants that's where this opportunity we are taking in oric in arabad to go into uh you know fourwh AE uh and non-automotive businesses so I would say that as far as two wheelers three wheelers or four wheelers you know the customers which are concerned whom we deal with generally we are among the first or the second choice for getting new orders and that's what's been happening so so the opportunity is huge our focus is to do more and more Machining take orders with Machining because your value ad is much better then that's our Focus we are also getting into you know U you know uh structural castings like swing arms and subframes and structural pairings which are complex uh which which need technology where even pricing is better yeah we are getting into you know large motorbike uh key castings for you know like you know crime cases for for you know example so the Outlook is very good and we are growing the question is that diecasting requires a higher capex so we keep a balance we are very mindful of the financials so we don't like to lose any good opportunity but sometimes we have to say no to some of the opportunities where we feel that that the other opportunities are better when we have a certain budget for Apex we are we are willing to spend more than the budget if required if there's a great opportunity organic or or inorganic but sometimes we do also say no so I think to answer your question opportunities are huge because we are one of the leaders in know in this industry so to answer is we are getting a lot of opportunities the growth potential is excellent and fortunately what's happening even in the EB space like I mentioned earlier because of lightweighting aluminium castings is a material where number of parts are increasing uh you know and uh so instead of like I said in the past you have crry cases you have covers your cylinder head cylinder blocks in an IC vehicle here you have case Transmissions your battery housings your motor housings different types of plates modules so the number of parts are tremendous so the opportunity is huge the question is how much we would like to take in future got it got it and my second question is on the uh us market so are we seeing some traction from the US customers and if yes are we seeing uh ATT traction from the US customers how's the demand and Supply situation there in terms of aluminum casting segment only see from India we are not exporting anything to the US yet but I will ask Mr benu to answer regarding this question as far as Europe is concerned sporting with mercel for sure and also BW but let me say the US market for pressure the casting of living comp is an interesting Market in this moment but we have seen an important reduction in the last three four months and so uh we are very careful about potential uh Improvement and potential grow in the in the United States in this moment we are following the grow of the European market in the reification process and so this is the focus of the company okay thanks thanks a lot that was helpful and all the best thank you the next question is from the line of Jesh Gandhi from Amit Capital please go ahead hello hello hello clarification on this uh uh 200 onetime gain which you're talking of this is over and above uh uh the incentives of 200 million or is it one in the same sorry over incentive of 200 so this 200 made milon of sales and yes it is separate from the incentive separate from the incentive got from customer and the vendor side again right right right got it and second question pertains for kex for European business uh we were investing quite material for the orders on hand uh given of these orders were for EVs and we are seeing some slowdown in the EV site uh is there any change in our Kix plans for the European business how much do we plan to invest uh over and about 51 million which we invested in f24 oh 234 we invested 62 million of Euro as I told you before of which 8 million for Volkswagen 334 million for tantis and 10 million for Mercedes tantis 100% of the investment I segment speaking about the the end of life 2023 2033 Volkswagen and Mercedes 100% from the electric project because as you know they stopped the investment in the internal combustion engine till today in the last three years and so we're invested for them only only for the electric project speaking about 2024 2025 the budget is to implement the total production capacity with an effort of more or less 40 million of as gross amount okay so sorry I might not have got the number right you're saying for f25 Budget of capex is40 million EUR 4 4 Z got it got it and uh secondly on Europe business can you share the revenue bet and P in Euro terms for f24 for or fourth quarter whatever is hand okay total year we close with 263 3 million of T no compared to 45.6 million with an increase of 7.2% compared to the previous Financial year a big the 42.3 million compared 35.6 million and increase of 18.9% compared to the previous Financial year the percentage of a bid of the year was 16.1% net result 14 million of Euro 5.3% compar 12.1 million of Eur the previous Financial year that was 4.9% the increase onet Prof was 15.4% got it uh and last question to Mr James so on the ABS side we are expanding a capacity in a meaningful way given the opportunity size uh but uh we haven't talked about any new order vs on the ABS side so what are you seeing there on on the ABS side also if you can talk about the revenues which we're doing today and any new order beyond the initial orders see right now we had a run rate of 400,000 which is a single Channel we have added a capacity of 240,000 per Anum further for the Dual Channel which is starting in July 24 it is starting from the two existing owners we are supplying to but uh let me tell you that we are engaged with the other two-wheeler oems also to get new orders and that's why our plan in the second half of f26 is to reach 1.2 million of you know abs but definitely we are going step by step because uh uh uh you know looking at how the market is also growing and uh so we're going step by step you know but the opportunity is I mean is is very good there and I'm also hoping that abs are used in 125cc and lower bikes also in future uh but the but the but but the braks business is seeing a huge huge struction true true so this is uh the expansion based on the RSQ and not any a that's the right understanding yes yes absolutely absolutely correct got it got it great sir thanks and all the best thank you thank you the next question is from the line of Nish Jalan from access capit please go ahead yeah I have I have two questions firstly on the domestic four wheeler side I just wanted to understand uh how much would that be contributing to our revenues and you have Targets on revenue from here so so which all customers have you been able to I would assume that and what kind of component are Supply to your is breaking so actually the voice is breaking I could not get the whole question sorry B from my side can you hear me now 6.5% so 6 .5% was the share of our India business in fi 24 that is in the ply presentation also we which we have put on our website it's 6.5 but this is a figure which we are focusing on on really increasing by 530 you know and the and the total uh value was no no that is a value one so if it say 6.5% of our India sales what we did in fi 24 was a four beer business mainly for aluminium diecast components to to Hyundai Kia Mahindra and Tata Motors you know and U but there's a and of course some exports to Europe but uh but now we are going to like I said with our Focus capitalize opportunities in the aluminium casting space even in the aluminium forging that we have W order of about you know 250 million rupees from Jaguar land Roga which will be starting you know in this financial year and we'll be looking at getting more oems on the aluminum forgings and of course we are looking at proprietary products like I said by way of Acquisitions or it could be by way of ta agreements you know technology agreement so this PO is a very large area we are still it's a very tiny part of our India sales so we have a long way to go but our focus is very high on this got it Mr what kind of capacity do you already have for alum casting aluminum fing is a new business area for us in India right and uh so any other domestic OEM also we have started getting orders on the aluminium forging side yes so we have got order see aluminium forging like I mentioned earlier was a backo integration for the KTM as well as other OEM actually mainly for the KTM and Bajaj inverted front forks but uh but we found other opportunities with now customers approaching us like jaguar Landover we have won the order we have we have also got order from you know Harley Davidson and we're talking to you know other oems also rather than a backward integration and now we find we learn from jagar Landover that forgings will be a very uh you know I mean important part aluminum forgings uh you know in the four-wheelers so we're looking at new opportunities now also in you know aluminum forgings you know we have a technical collaboration with FGM in Italy uh you know for both process as well as on the product technology areas so we are very very optimistic on both and and and we have the technology process and product you know so that's no issue with this collaboration and we really have a good plant in uh balabad and we are planning to expand that actually in the future we have plans immediate plans to expand it yeah great to hear that lastly on Europe I just wanted to understand when we are winning ERS for hybrid vehicles what are the kind of components we will be supplying to those those Vehicles will it be too different from the components that you supply in ice or it is largely similar the components for hybrid vehicles are they different from Ice are they common or they similar no no similar thing about the process in high pressure D machine for sure in the machine from the Machining side we need important automation important uh Machining investment compared to the previous technology due to the fact that we have to respect quality request very tough compared to the previous part of in of power Trin engine and and transmission the the quality request of the customer in this component due to the potential problem as you know of electrical component link to the to the battery are very very tough and for this reason the investment in terms of automation is higher compared to the past but the the process the component are in terms of process are absolutely the same okay and just just one followup uh we are doing aluminum castings in Europe any plans to go into aluminum forgings in Europe as well or you will just focus on Alum foring in India in this moment we are producing only I pressure the casting component in Europe we sell some gravity component but we buy from the market the strategy is to focus in this moment in the pressure okay thank you so much thank you the next question is from the line of D Agarwal from feom family office please go ahead uh hi sir so just wanted to know about the capacity after the new plant in the Orab so what will be our final capacity in the aluminum di segment I think it's 900 so it's 900 metric p a month is what we are putting up 900 metric tons a month into 12 okay so this is for the new project right I was talking about the existing plus the new project so what would be the final but I know that we had more than 100,000 metric tons uh from what I remember I mean LOM is more than 100,000 metric tons excluding alloy B okay okay got it got it sir thanks thanks a lot thank you as there was the last question for the day I know handy conference over to the management for closing comments over to you sir yeah no I have no further remarks I already mentioned them in the beginning and just I'd like to mention again that we'll keep doing our best and thank you for the support which we are getting from everyone thank you thank you on behalf of exess capital limited that concludes its conference thank you for joining us you may now disconnect your lines thank you thank you thank you thank you

Mega project incentive in quarter 4 of rupees 23.3 million for fi 24 the full Financial year 524 a Consolidated total in total net income grew by 16.7% and was rupees 103,2 16486 million as compared to rupees 888494 73 million in f23 this was the first time that endurance technology is cross the 10 cross 100,000 million Mark consolid IA grew by 30.7% and was rupes 14,113 5.99 million as compared to 10,869 million in fi23 Consolidated IA margin was at 13.7% the net profit grew by 41.9% and was 6,8 4.88 million at 6.6% this included the Mah State mea project incentive of R 79235 million in fi 24 a standalone total income grew by 16.6% and was rupes 79247 Million as compared to rupees 67,900 7 million in fi23 Stand Alone IA grew by 30.8% and 10,557 183 million as compared to rupes 87434 million in financial year 23 we had a IA margin at 13.3% stard net profit grew by 43.7% and was rupees 58779 3 million at 7 .4% this includes the Marat State Mega project incentive of rupes 79235 million there was no net debt and there was a Consolidated positive cash available which has crossed the rupes 5 billion mark and it was at rupees 5.44 billion the detailed financials are available with the stock exchanges and on the endurance website I would now like to share certain key points for the financial year 524 77% of a Consolidated total income including other income came from Indian operations and 23% came from a European operations in India in fi 24 rupes 11,980 million of new business was won from oems other than baj Auto which included Royal Enfield CPS hero motoc cop tataa Motors hmsi Jaguar Landover Hyundai Mahindra Tata punch power train and Suzuki this business win of rupees 11,980 million constitutes 8,248 million of new business and rupes 3,732 million of of of replacement business this rupees 11,980 million of business will reach Peak sales in fi 27 the total fourwheeler business win in fi 24 is rupees 2,810 million which is 23% of our total auto wins in F 24 these orders are mainly from Tata punch power train tataa motors Mahindra Jaguar Land Rover and Hyundai I would also like to mention that we are in discussion for rupees 18,44 Million worth of request for codes from since fi20 in India rupees 4,857 million of business has been won out of which rupes 29,36 million is new business and rupees 11,000 551 million is replacement business out of rupes 29,36 million new business rupes 26,900 million is expected to reach Peak sales in Epi 27 and is mainly for suspension castings and braks EVS business win has been rupees 5,32 5,320 million till date and it&#39;s growing the business win is laring for brakes aluminium alloy wheals and and suspension the rupees 5,320 million sales will reach peak in fi 26 the total business win for electric vehicle to date is rupes 7,145 million these orders are mainly from hmsi which is Honda scooters and motorcycles ether energy baj Auto hero electric re electric which is Amper T motor bounce and aptive this is apart from the rupees 3,785 million business win by a subsidiary company Maxwell the significant new business wins in this year are I mean the wills in f24 are we have won rupees 719 billion of new business from tbs in fi 24 which included rupees 39 million of inverted front forx and rear motor shocks suspension business and also rupees 404 million of the PBS Rider and hlx bikes front for and rear Sher business which sop is planned in August 2024 we have also won rupe 1750 million of new business from Euro Moto in f524 which includes inverted front for H business win of rupees 240 million and Sops planned in June 2024 the break assembly new business of rupes 263 million and this sop has already started in April of 2024 and the front and rear shock absorber business of rupes 1247 million and this business has also started we have run Suzuki&#39;s new scooter front business of rupes 253 million this is an addition to the rupees 14400 million front for business already won the previous year and the SOP of both will be in quarter three of this financial year we also won the the Honda scooters and motorcycle break assembly new business or 294 million and the SOP is planned in quarter three of fi25 we have won Royal np&#39;s alloy new business of rupes 961 million and sop has also started we won tataa motors&#39;s punch power train Four wheer aluminium casting new business for rupees 1,26 million rupees 582 million sop is already started for its first project and rupees 444 million second proposed project sop is expected in quarter three of this financial year the new 35 di air suspension inverted front forks for Supply to K and Austria will start by quarter three of this financial year with the help of KM technology from aalu aabad plant the value of the business will be rupees 400 million perom and will be exported to KPM austrialia we&#39;ve also won rupe 876 million perum business from for aluminium castings which Sops is is in quarter three of f27 hmsr has awarded as two new businesses in quarter four of f524 which are 100 cc motorcycle fund for re shop absorber business or rupes 343 million perom which sop is in February 2025 we also W the first EV scooter front for re shopable business which sop is also in quarter four of this fincial year for eved scooters we are ramping up our sales to 240,000 sets perom of aluminum castings which are required for electric vehicle battery packs and motor housings the total value will be rupees th000 million perom which has already started and will reach Peak sales value in this financial year for ed3 dealers we have run new business for case transmission and Factory housing casings of 200 million perom which will peak in fi 26 our customers recognize us as a trusted and capable partner in the value chain in terms of both Technical and financial strengths the electronic Vehicles Market offers significant opportunity for growth in future to the auto component sector as you know endurance has executed a shared subscription and purchase agreement for acquiring 100% of equity share capital capital of of of maximal energy in a phase manner we have last year increased our Equity state to 56% in Maxwell as per our agreement Maxwell is in the business of advanced electronics particularly in the battery management system for two wheer EVs and for automotive and two wheer battery [Music] packs at Maxwell vm1 BMS business battery management system business of 793 million in f24 and have a p line of rfqs of more than rupees 1 billion till dat since fi 22 rupees 3,785 million business has been won by Maxwell despite the latest strengths in the EB Market we believe that these orders will help us achieve sales in excess of rupes 2500 million in fi 27 with the current order book order Pipeline and Technical strengths of both endurance and maxal we are confident of achieving our goals in this Advanced electronic space as the dis break assembly business is growing with addition of customers like baj TVs Royal NP Yamaha hero motop AA as well as hmsi a second plant at Balu arabad has been set up for this increase in volumes and has started sop last year we have already started the Disc break assembly supplies to hero Moto cop from April 2024 and the supplies to Honda scooters and motorcycles will start from quarter three of this financial year with this new plant we have already reached a run rate of Disc break assembly volumes which have increased to now 6.2 Million numbers perum and break disc at to 2 8.1 Million numbers pan as you are aware the supply of two wheer ABS assemblies to baj Auto and Royal Enfield have started we have reached a run rate of 400,000 ABS assembly spanel as you are aware the competition is mainly from Bosch and Continental which controls a major market share in the Indian ABS two wheer Market of approximately 3.5 million number motorcycles which needed per anom we are know in the process of supplying a dual Channel Abs from July 24 2024 today we are going only single Channel and we have scaled up additional assembly Lines by increasing the capacity by another 240,000 ABS assembly spanm which has taken now the total capacity to 640,000 ABS assembly spanner we are further planning to increase this capacity to 1.2 million single and dual Channel ABS assembly spum for the second half of fi 26 we&#39;ve also as mentioned earlier in March 23 started manufacturing the ABS vales which is not only a technology component but has helped us to substantially lower our costs due to increased orders in alloy deals from baj Auto Yama India TBS and now Royal Enfield we have added a new plant as you know in July 22 at Chakan to help increase our supplies to 4.5 million Wheels per which we&#39;ve already reached now with the New Order wheels from Royal Enfield and PVS we are now expanding to supply and and 5.5 million wheels perum and the SOP has already started for April 24 for Royal and PVS will start from from this from from this from the end of this first quarter of fi25 as far as Europe is concerned till dat in fi 24 we have won 30.8 million euro of business mainly from the Volkswagen group including pchain Audi and Mercedes-Benz in the last 24 months out of 115 million euro order 61 million euro orders are for the growing battery EV business and 35 million euro are for hybrids in 2023 the E battery EV penetration in Europe has been at 15% and hybrid at 33% we are therefore well placed in terms of securing orders for this growing segment I would also like to point out that endurance both in India and Europe is actively pursuing its focus on gaining access to new technologies and focusing on new products organic and inorganic growth at endurance our future Focus will be on the following projects for a better product mix and better profit margins increase our four-wheeler share of Consolidated business from 25% now to 45% by fi30 this increase is going to come from aluminium castings and aluminium forgings as they are going to be increasingly used for lightweighting as we can see now and also from proprietary products through Acquisitions joint ventures and Technology agreements we will be focusing on increasing our share of business for the premium 150 cc and above for our brake assemblies and abs suspension as well as clutch assemblies with upgraded product Technologies and process we will focus on increasing our business for electric vehicles with existing and new products we will also increase our embedded electronic business by becoming a significant player in the future for battery Management systems and electronic products required for EBS and other applications we will focus on non Automotive business which is large opportunities es especially in in in aluminium castings we are now in the process of setting up a new plant in the 11 acre land at oric aabad 17 kilometers from the aabad airport where the SOP will start in quarter one of fi 26 which is the next financial year where our Focus will be on four wheelers including four four four fourwheeler e parts and non Automotive aluminium casting business the total KS is expected to be rupees 4,9 million this should be spent in stages from now to March 2028 with a sales expectation of rupees more than 5,000 million perom a focus also is to reach 10% of India sales in our aftermarket business in India by fi 28 in fi 24 aftermarket sales grew by 6.92% from rupes 43109 million in the previous year to rupees 4,6 9.36 million in f24 with three more countries added to our Network we are now exporting our aftermarket parts largely held by the increase in our volumes and the Improvement in in the product mix uh at the same time there has been approximate 200 million impact uh I mean a gain impact due both on the client as well as on the vendor side because we have got a one-time gain of rupes 200 million but uh largely it has been because of the good volumes we have seen and the product mix has been improving you know every quarter so so so that&#39;s the reason for it okay so noops there t I just saw that this 200 million of incentives uh 13 and half% margins are still I mean driven operationally and no one there well well I I&#39;ll only tell you that we&#39;ll continue to do our best I understand you don&#39;t like for margin but just there Just sh jump so is directionally mix is improving and there&#39;s recovery in the as well so that should also Aid margin recovery process I understand that secondly if I look at the European business so there has been uh the new auto has slowed down considerably in last nine months is this largely reflection of slowing easy sales in EU or there&#39;s something else which we seeing here GES can you repeat your question because the audio is somewh unclear yeah very unclear from your side I could understand it but mimo could not understand it sorry is it better now question on Europe so question is on Europe about the new AOG have slowed down considerably in last nine months uh so what are the reasons for thats have slowed down slowed down yeah so in the previous Financial year we acquired only 41 million of Euro business I agree with you that is L to the previous year but considering the situation into the market from my point of view is a is a very important result also because we acire business for the Strategic project of Mercedes and volksvagen so the total acquisition reached 250 million of in the last five years and so more or less the total T of endurance overseas and so I&#39;m really Optimist for for the future and you will see an important increase of volume in the next financial year due to the business acquired in the previous three four five years okay okay and M on the European business margins are also flat on year on-ear basis despite sharp decline in energy cost so uh what led to offset of this benefit of lower energy cost on margin side yes so AR not FL and now I explain to you why if you analyze the last quarter of previous Financial year we Clos with 17.8% of a b that that is true is the same of the previous Financial year but please consider that in the previous Financial year January March 2023 we receive we had from the government 45% of grant for the energy cost and also in the previous Financial year we receive uh money from the customer for the impact of energy cost of the total previous Financial year and so if you compare the profitability of the previous quarter compar to the prev fin Year from my point of view we are gr we are growing more or less 2% of a bet compared to the previous year from the industrial point of view we are doing better compared to the previous year in fact if you analyze our profit and loss you will see a reduction in the material cost of 12% compared to the previous year more or less with the same turnover and increase of other expenses of 26% the material cost is due to the fact that we are producing a lot of part only Machining and as you know in this case the profitability is higher compared to the rart okay and the in the other expenses the increase of of the previous Financial year is link to the increase of energy cost due to the fact that in the previous Financial year we had this Grant from the the government and the customer so the profitability in this s was very good compared to the previous Financial year speaking about the total Financial year we with 16.1% of aidda compared 14.5% of the previous final year and please consider that even if the energy go down in important way we are continues to pay more or less the double three times compared the preco situation and this affected our bid of more or less 1.8% and so if I if I do a restatement of the bid in this moment Europe we have more or less 17.9% 18% of a b got it got it this is quite helpful thanks I&#39;ll follow back in few few for more questions thanks thank you the next question is from the line of Muk Mana from Anand rati please go ahead yeah thank you so much sir for opportunity and congratulations on the strong results uh just uh just on the incentive part will there be any incentive for25 sir like last qu we saw can you repeat the question the audio is not no he&#39;s saying will that inceptive be also in fi25 the mega yeah this I&#39;ll explain um see we are looking at the incentive scheme of fy13 to fy19 so in the last year we have booked close to 79 crores as incentive so in the current year that means fi 2425 under Mega project incentive scheme of 20 2013 to 19 we expect to book something around 30 crores plus minus in that region so I hope that answers your question got it and it would be like uh spread out equally sir across quarters no normally the way we see as you know this incentive is paid by government based on our sgst paid sales in the state of Maharashtra so therefore uh this appetite is normally consumed over one or two quarters so it I don&#39;t expect it to go go beyond uh go beyond uh second quarter but uh also there would be incentive for 2019 to 24 scheme as and when we apply as and when we get approval but that is not within the perview of this discussion right now got it sir uh just on the yeah next next question is on the new capacity which announced for the four-wheeler and Nona went of of 2 million of potential any order where what kind of order WIS we have already won for the plant sir see this is an activity we started actually at the beginning of this calendar year in January 2024 I cannot disclose that much to you in order WIS it won&#39;t be correct at this stage but let me just give you just a brief idea what we are doing these are basically for four pillar Parts with EV focus and a technology Focus this also has non-auto Parts could be for segments of 5G 6G ATVs utvs 5G Telecom like I said and uh and other industrial areas the these these will have special I would say uh special pro pro processes it will have a it&#39;ll have automation very good surface stre ments and and there will be self-sufficient sales with minimal handling because largely this project will be for exports so I&#39;ll just leave it at this but definitely to answer your question already we have auto wins for this and that&#39;s the reason we have committed to this project which will start in quarter one of fi 26 uh and uh already the building the construction has started so as you know our strength is in aluminium diecasting and machining so we are very well equipped with our own engineering skills and tool room and over 35 years of experience in this line to explore these new opportunities we I&#39;ve already told you about the four-wheeler focus and the non-automotive focus so this is in line with that kind of a focus and strategy which we have for the future so this helpful sir uh so on the kic side uh what kind guidance is there for the by 25 and 26 see see the kex will be see we see we we have done a kex of about 3,833 million in fi 24 which was 81% for growth which included building plant machinery and dice rest was of course in quality process efficiencies there was also routine PEX and and then there was R&amp;D next year the figure should be similar to about say 4,000 million rupees uh we don&#39;t at this stage unless there are new opportunities this is a very Dynamic situation so practically we see we we we will say that we spend a similar kind of money because we have this new plant also coming up at oric plus we have very very key investments in our growing business of brakes alloy wheels as well as suspension so uh so that&#39;s the kind of figure we I talking about got it sir and just lastly sir uh any growth outlook for the Disc break and alloy for fi25 sir good outlook sir for two key segments the capacity in alloy bees of 5 and a half million I have mentioned and I can only leave it at this there are huge uh huge not only potential but uh uh large requests for increasing the alloy BS sales so so we&#39;re looking at it in a very serious manner as far as alloy BS is concerned and your second question was on brakes brakes is the fastest growing segment we have you know and the requirement is just uh I mean it in fact in in fact our our head for break was telling me in April itself we have crossed I mean uh I mean the volumes based on a plan which we had for our budget so because because we have a huge requirement to fulfill we have taken large number of orders so so so so breakes is really growing I would say very very well got it sir thanful sir thank you so much thank you the next question is from the line of raot from P equities please go ahead yeah hi uh thanks for the opportunity so first question is if I look at your slide eight where you talk about uh EV order wins for India they seems to have slowed down drastically in fi 24 I can understand it is a function of the industrial activity also so what are your customers looking at and uh how are you planning to address this if the uh for the medium term see the way we look at is we follow the I mean I mean our customers and their requirements we ensure that we are connected with all the uh OEM speci es in the two and three-wheeler space and of course also in the four-wheeler in terms in terms of aluminium castings and looking at their plan whatever is their business plan or uh uh you know so we basically do our best to take orders based on that definitely the fame to subsidy in India uh where a large part of the subsidy went out was taken away I think in July 2023 has definitely affected a lot of two wheer EV oems who were lead lead who who were like in the top bracket in the end now we&#39;ll see how it plays out in the future I can only tell you that say we talk about say you know Honda you know say okay say we talk about any two wheer OEM which is going into you know it&#39;s it&#39;s you know Ed platforms we are if we are not in the first we are at least there in the future platforms and with some we are right from the first platform you know so I would say that if you see that the orders have lowered it&#39;s it&#39;s a function of how the industry is doing but nowhere are we going to lose any opportunity on the EV front because that&#39;s a very large growth area for us and uh also our Maxwell business is a lot to do with e your is your question on India or Europe uh I had on India I wanted to follow up on the Europe also I think so I can only tell you that we are highly focused we are connected to all the oems and uh and and and we are really doing our best we have taken uh good amount of orders and um of course sometimes the LOI show lower volumes and the volumes increase the value will increase so we&#39;ll see how it goes but we are not leaving any stone unturned to take orders so this is to answer your question this is a function of ke industry and and how it&#39;s functioning you know sure and the second related to India business or stand alone uh if I to adjust for incentives uh still the gross margin expansion is uh pretty comfortable and seems to be the raw material has come down for the first time from that 66% to 63% uh do you feel structurally you are back in that uh zone or it&#39;s a oneoff and hence you still have to work on it to get the gross margins back to the older days see see the see the whole question which which which happen is that why I don&#39;t like to come you know talk about the percentage of gross margins or aita margins is because it all depends like I mentioned earlier we are focusing on product technology and ensuring that the product mix is increasing in all the areas and we are looking at new areas which has helped a lot what work we did year year and a half ago has paid off in quarter 4 at the same time also I mentioned about the volumes you know as you know we are 80% in India on with with you know two two wheelers which I would say in the last two quarters has done very well and what I&#39;m and what I&#39;m seeing in April doing very well so the question is the product mix and volumes will definitely help in our IA margins but I also mentioned there was a rupees 200 million onetime gain which has come both on the vendor side and the client side so that that may or may not come in future you know so I can only say that we will do our best uh to see that we do our best on the margins you know we&#39;ll continue to do our best sure and uh coming to the uh European side on the EV front uh I think there has been a lot of recent noises about slowdown in the EV penetration so considering that how are you looking at your order book wins to be consumed this year one second do you see any opportunity for any uh m&amp;a in this space in the medium term to add considering this confusion in the marketplace okay so uh in Europe as you from September 2023 there was an important reduction of registration of electrical vehicle due to the fact that a lot of countries sto the incentive In This Moment unfortunately without incentive is very difficult to sell a car with a leverage of price very high compared to the General market and this is the reason why uh they are waiting everybody are waiting the new election in Europe to understand which will which will be the situation in the future as you know a lot of OEM in the last period of time officialized that they will continue to invest also in the internal condusive engine speaking about endurance from my point of view we are in a strong position due to the fact that we have already installed production capacity for the electric project so starting from April of this financial year we are ready to reach more or less 50% the total Peak capacity of the business already acquired for the electrical vehicle and please consider that in the previous Financial year we did 62 million of yearo of investment in order to install this poal capacity maintaining the the the the cash free with so we it means that we invested we spend this money with our cash profit speaking about the future 12 months in this moment we have seen an important increase of internal conduc engine this is true in the first quarter of this financial year there was an increase of 2% also in the diesel technology and 5% in the I technology of gine but as you know we are thinking about rise of product where we have production capacity and so let me say in this moment we are seeing which will be the situation of the market and please consider that in lot of our business we have a take or pay contract with our customer so it means that we are protect from potential slow down of volume in the electric compared to internal comu my personal opinion is that is only a period of time uh in in the future when the government will in in investing important way infrastructure the electric vehicle will contines to grow in in in the General market speaking about the opportunity and In This Moment unfortunately there are a lot of company in bankruptcy due to the fact that the strategy of the the last period of time in the last five year was to focus in few supplier for the electric development and so there are a lot of opportunity and Frankly Speaking we are considering possib possible acquisition in order to continues to grow also because we can&#39;t contines to grow from Green Field we need to reforce also our team our knowledge our people otherwise we can&#39;t uh become we can&#39;t grow in important way in the future years and so we are ready for potential acquisition sure thanks and all the best thank thank you the next question is from the line of agal from feom family office please go ahead yeah hi sir thanks for the opportunity and congratulations on the great set of numbers so uh I just wanted to know about the trend in the aluminum prices and the Outlook uh going ahead in the aluminum dting see uh what is happening in India uh unfortunately or fortunately uh the aluminium alloy prices are not dictated uh you know by lme the the you know the London Metal Exchange it is dictated by the availability of the scrap which is required the aluminium scrap which is required which largely is also imported now I believe that because of what I hear is because of the sea frates uh you know going up uh because of this crisis of Israel and Hamas the rates keep going up and down you know so the way so for me to say that EX L how the trend will be I mean my answer would be that it should go down Alum no it is on the aluminium alloy pricing right is what you&#39;re saying no no I was saying on the aluminium diecasting part okay so sorry so so what was the question again uh the price is of aluminium right now and the outlook for the entire aluminium diecasting segment for our company yeah so in fact aluminium die casting is I would say one of our you know strongest segments and U that&#39;s the segment we started with in 1985 we are very strong in terms of engineering our tool room our plants that&#39;s where this opportunity we are taking in oric in arabad to go into uh you know fourwh AE uh and non-automotive businesses so I would say that as far as two wheelers three wheelers or four wheelers you know the customers which are concerned whom we deal with generally we are among the first or the second choice for getting new orders and that&#39;s what&#39;s been happening so so the opportunity is huge our focus is to do more and more Machining take orders with Machining because your value ad is much better then that&#39;s our Focus we are also getting into you know U you know uh structural castings like swing arms and subframes and structural pairings which are complex uh which which need technology where even pricing is better yeah we are getting into you know large motorbike uh key castings for you know like you know crime cases for for you know example so the Outlook is very good and we are growing the question is that diecasting requires a higher capex so we keep a balance we are very mindful of the financials so we don&#39;t like to lose any good opportunity but sometimes we have to say no to some of the opportunities where we feel that that the other opportunities are better when we have a certain budget for Apex we are we are willing to spend more than the budget if required if there&#39;s a great opportunity organic or or inorganic but sometimes we do also say no so I think to answer your question opportunities are huge because we are one of the leaders in know in this industry so to answer is we are getting a lot of opportunities the growth potential is excellent and fortunately what&#39;s happening even in the EB space like I mentioned earlier because of lightweighting aluminium castings is a material where number of parts are increasing uh you know and uh so instead of like I said in the past you have crry cases you have covers your cylinder head cylinder blocks in an IC vehicle here you have case Transmissions your battery housings your motor housings different types of plates modules so the number of parts are tremendous so the opportunity is huge the question is how much we would like to take in future got it got it and my second question is on the uh us market so are we seeing some traction from the US customers and if yes are we seeing uh ATT traction from the US customers how&#39;s the demand and Supply situation there in terms of aluminum casting segment only see from India we are not exporting anything to the US yet but I will ask Mr benu to answer regarding this question as far as Europe is concerned sporting with mercel for sure and also BW but let me say the US market for pressure the casting of living comp is an interesting Market in this moment but we have seen an important reduction in the last three four months and so uh we are very careful about potential uh Improvement and potential grow in the in the United States in this moment we are following the grow of the European market in the reification process and so this is the focus of the company okay thanks thanks a lot that was helpful and all the best thank you the next question is from the line of Jesh Gandhi from Amit Capital please go ahead hello hello hello clarification on this uh uh 200 onetime gain which you&#39;re talking of this is over and above uh uh the incentives of 200 million or is it one in the same sorry over incentive of 200 so this 200 made milon of sales and yes it is separate from the incentive separate from the incentive got from customer and the vendor side again right right right got it and second question pertains for kex for European business uh we were investing quite material for the orders on hand uh given of these orders were for EVs and we are seeing some slowdown in the EV site uh is there any change in our Kix plans for the European business how much do we plan to invest uh over and about 51 million which we invested in f24 oh 234 we invested 62 million of Euro as I told you before of which 8 million for Volkswagen 334 million for tantis and 10 million for Mercedes tantis 100% of the investment I segment speaking about the the end of life 2023 2033 Volkswagen and Mercedes 100% from the electric project because as you know they stopped the investment in the internal combustion engine till today in the last three years and so we&#39;re invested for them only only for the electric project speaking about 2024 2025 the budget is to implement the total production capacity with an effort of more or less 40 million of as gross amount okay so sorry I might not have got the number right you&#39;re saying for f25 Budget of capex is40 million EUR 4 4 Z got it got it and uh secondly on Europe business can you share the revenue bet and P in Euro terms for f24 for or fourth quarter whatever is hand okay total year we close with 263 3 million of T no compared to 45.6 million with an increase of 7.2% compared to the previous Financial year a big the 42.3 million compared 35.6 million and increase of 18.9% compared to the previous Financial year the percentage of a bid of the year was 16.1% net result 14 million of Euro 5.3% compar 12.1 million of Eur the previous Financial year that was 4.9% the increase onet Prof was 15.4% got it uh and last question to Mr James so on the ABS side we are expanding a capacity in a meaningful way given the opportunity size uh but uh we haven&#39;t talked about any new order vs on the ABS side so what are you seeing there on on the ABS side also if you can talk about the revenues which we&#39;re doing today and any new order beyond the initial orders see right now we had a run rate of 400,000 which is a single Channel we have added a capacity of 240,000 per Anum further for the Dual Channel which is starting in July 24 it is starting from the two existing owners we are supplying to but uh let me tell you that we are engaged with the other two-wheeler oems also to get new orders and that&#39;s why our plan in the second half of f26 is to reach 1.2 million of you know abs but definitely we are going step by step because uh uh uh you know looking at how the market is also growing and uh so we&#39;re going step by step you know but the opportunity is I mean is is very good there and I&#39;m also hoping that abs are used in 125cc and lower bikes also in future uh but the but the but but the braks business is seeing a huge huge struction true true so this is uh the expansion based on the RSQ and not any a that&#39;s the right understanding yes yes absolutely absolutely correct got it got it great sir thanks and all the best thank you thank you the next question is from the line of Nish Jalan from access capit please go ahead yeah I have I have two questions firstly on the domestic four wheeler side I just wanted to understand uh how much would that be contributing to our revenues and you have Targets on revenue from here so so which all customers have you been able to I would assume that and what kind of component are Supply to your is breaking so actually the voice is breaking I could not get the whole question sorry B from my side can you hear me now 6.5% so 6 .5% was the share of our India business in fi 24 that is in the ply presentation also we which we have put on our website it&#39;s 6.5 but this is a figure which we are focusing on on really increasing by 530 you know and the and the total uh value was no no that is a value one so if it say 6.5% of our India sales what we did in fi 24 was a four beer business mainly for aluminium diecast components to to Hyundai Kia Mahindra and Tata Motors you know and U but there&#39;s a and of course some exports to Europe but uh but now we are going to like I said with our Focus capitalize opportunities in the aluminium casting space even in the aluminium forging that we have W order of about you know 250 million rupees from Jaguar land Roga which will be starting you know in this financial year and we&#39;ll be looking at getting more oems on the aluminum forgings and of course we are looking at proprietary products like I said by way of Acquisitions or it could be by way of ta agreements you know technology agreement so this PO is a very large area we are still it&#39;s a very tiny part of our India sales so we have a long way to go but our focus is very high on this got it Mr what kind of capacity do you already have for alum casting aluminum fing is a new business area for us in India right and uh so any other domestic OEM also we have started getting orders on the aluminium forging side yes so we have got order see aluminium forging like I mentioned earlier was a backo integration for the KTM as well as other OEM actually mainly for the KTM and Bajaj inverted front forks but uh but we found other opportunities with now customers approaching us like jaguar Landover we have won the order we have we have also got order from you know Harley Davidson and we&#39;re talking to you know other oems also rather than a backward integration and now we find we learn from jagar Landover that forgings will be a very uh you know I mean important part aluminum forgings uh you know in the four-wheelers so we&#39;re looking at new opportunities now also in you know aluminum forgings you know we have a technical collaboration with FGM in Italy uh you know for both process as well as on the product technology areas so we are very very optimistic on both and and and we have the technology process and product you know so that&#39;s no issue with this collaboration and we really have a good plant in uh balabad and we are planning to expand that actually in the future we have plans immediate plans to expand it yeah great to hear that lastly on Europe I just wanted to understand when we are winning ERS for hybrid vehicles what are the kind of components we will be supplying to those those Vehicles will it be too different from the components that you supply in ice or it is largely similar the components for hybrid vehicles are they different from Ice are they common or they similar no no similar thing about the process in high pressure D machine for sure in the machine from the Machining side we need important automation important uh Machining investment compared to the previous technology due to the fact that we have to respect quality request very tough compared to the previous part of in of power Trin engine and and transmission the the quality request of the customer in this component due to the potential problem as you know of electrical component link to the to the battery are very very tough and for this reason the investment in terms of automation is higher compared to the past but the the process the component are in terms of process are absolutely the same okay and just just one followup uh we are doing aluminum castings in Europe any plans to go into aluminum forgings in Europe as well or you will just focus on Alum foring in India in this moment we are producing only I pressure the casting component in Europe we sell some gravity component but we buy from the market the strategy is to focus in this moment in the pressure okay thank you so much thank you the next question is from the line of D Agarwal from feom family office please go ahead uh hi sir so just wanted to know about the capacity after the new plant in the Orab so what will be our final capacity in the aluminum di segment I think it&#39;s 900 so it&#39;s 900 metric p a month is what we are putting up 900 metric tons a month into 12 okay so this is for the new project right I was talking about the existing plus the new project so what would be the final but I know that we had more than 100,000 metric tons uh from what I remember I mean LOM is more than 100,000 metric tons excluding alloy B okay okay got it got it sir thanks thanks a lot thank you as there was the last question for the day I know handy conference over to the management for closing comments over to you sir yeah no I have no further remarks I already mentioned them in the beginning and just I&#39;d like to mention again that we&#39;ll keep doing our best and thank you for the support which we are getting from everyone thank you thank you on behalf of exess capital limited that concludes its conference thank you for joining us you may now disconnect your lines thank you thank you thank you thank you

Transcript for:Financial Results and Business Strategy Discussion - Endurance Technologies

Transcript for:
Financial Results and Business Strategy Discussion - Endurance Technologies