NDR Auto Components hosted a conference call on May 30, 2023. In the conference call, company was represented by: Pranav Relan- Whole Time Director, Mr Vinod Kumar– Chief Financial Officer and Mr Sanjiv Kumar – Financial Advisor.

Key takeaways of the call

In Q4 FY24, company’s topline grew driven by robust demand for its products.

Demand for passenger vehicles continues to be strong growth driver for the company. At recent auto Expo, Maruti unveiled new SUV models like Jimny and Fronx. Company has received orders for these models, which will drive growth in FY24.

EBITDA margin improved on back of cost saving initiatives and falling commodity costs.

Gujrat plant, which became operational in March 2023, has expanded company’s capacity to 11 lakh units. Gujrat plant will help clock around Rs 70-80 crore of revenue in FY24.

Company continues to look for new models/ customer additions.

Capacity utilization was around 80% in FY23.

Company generated strong cash flows of about Rs 48 crore in FY23.

Electric vehicle market is expected to continue its fast growth.

Company’s working capital cycle is 45-60 days.

Capex for FY24 will be between Rs 30-40 crore.

Management guided dividend payouts to be 10% of profits in future.

Board recommended dividend of Rs 5 per Equity share of Rs 10 each of the Company for the year ended 31 March 2023.

Board recommended issue of fully paid bonus share in ratio of 1:1, by capitalizing sums out of the free reserves and other permitted reserves of the Company.

Consequent to the said issue of bonus shares, Issued, subscribed and paid up capital of the Company shall stand increased to a sum of Rs 1,189.26 lakhs by capitalizing a sum of Rs. 594.63 lakhs from free reserves and/or permitted reserves. In order to execute the bonus issue, the board has also recommended to increase the authorised share capital of the Company to Rs 24 crore (2,40,00,000 equity shares of Rs 10 each).