Fiem Industries hosted a conference call on Aug 16, 2023. In the conference call, the company was represented by- Mr. J.K. Jain, Chairman & Managing Director, Mr. O.P. Gupta, Chief Financial Officer and Mr. Arvind K. Chauhan, Company Secretary.

Key takeaways of the call

In Q1 FY24, automotive segment contributed 99.66% to total revenue and IPIS & LED luminaries 0.34%.

In terms of product mix, automotive lighting contributed 33.94% to total revenue in Q1 FY24, Automotive LED lighting 39.41%, plastic moulded parts 11.48%, rear view mirrors 11.07% and others 4.1%.

In Q1 FY24, domestic OEMs contributed 90.30% to total revenue, domestic replacement market 7.85% and exports 1.85%.

During Q1 FY24, two-wheelers customers contributed 95.95% to total revenue and four-wheelers 4.05%.

Company expects strong revenue growth in FY24 supported by growth in auto industry, rising share of LEDs and execution of new projects.

Company is expanding its product portfolio to cater to fast growing EV segment.

Company is seeing huge business potential in 2-Wheeler EV segment and looking to expand its product portfolio to cater this segment. Company is currently working with several EV OEMs such as Ola, Okinawa, Bounce, Hero Electric, and others.

Company expects to clock about 13.5% EBITDA margin in FY24.

In Q1 FY24, Honda Motorcycle contributed 25.31% to total revenue, TVS Motor 25.62%, India Yamaha 14.58%, Suzuki Motorcycle 9.60%, Replacement market 7.85%, Eicher Royal Enfield 3.72% and other customers 13.32%.

Company is working with Hero for several new projects. Company indicated that there are four new models in pipeline to be released going forward.

Company expects good production numbers from Yamaha for domestic as well as exports.

Capex for FY24 will be around Rs 56 crore.

Company has strong balance sheet and is well prepared for growth.

Company’s building, one part of Unit-7 situated at Plot No. 1915, Phase -V, Rai Industrial Estate, Sonipat-131029 (Haryana) caught fire on June 13, 2023. There were no human casualties reported. The assets are adequately covered by an insurance policy and the company is in the process of filing insurance claim for the loss incurred. The carrying value of inventories of Rs 25.83 crore (including GST reversals) and carrying value of property plant and equipment of Rs 25.19 crore have been written off in the statement of profit and loss during the current quarter ended on June 30, 2023. The recoverable amount pertaining to the loss of the inventory as stated above and loss to the extent of carrying amount of the property plant and equipment have been shown as receivable as on June 30, 2023.