NDR Auto Components hosted a conference call on Aug 8, 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

Company is focused of increasing the number of OEMs it caters. In addition, company intends to expand its portfolio going forward.

In Q1 FY24, capacity utilization was between 80-85%. For Gujrat facility, it was 40%.

During June 2023 quarter, company sold about 5 lakh two-wheeler frames and 7 lakh four-wheeler frames.

In FY24, company expects capex of Rs 20-30 crore.

Company intends to increase its content per vehicle by adding more products to its portfolio.

Company supply seating component to Bharat Seats, the demand for the product is indirectly driven by production volume of Maruti Suzuki. Company has 33% Business Share in Maruti Suzuki.

Company is working towards increasing its market share with Maruti Suzuki. Company’s current share of business in Fronx and Jimny model is around 50%.

Management indicated that, company is open to inorganic growth.

The enforcement of BS-VI standards of safety and emission is anticipated to help the export market expand, and benefit players like NDR auto components in India.

India is poised to emerge as an outsourcing hub. Going forward, management indicated that demand for automobile would remain upbeat with rising per capita income, Improvement in road infrastructure and national connectivity. The old vehicle scrappage policy 2021 will further provide impetus to automobile demand.

Foreign players prefer India because it is a cost-effective location for manufacturing, which bodes well for the auto ancillary market.