Fiem Industries hosted a conference call on Feb 12, 2024. 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 9M FY24, automotive segment contributed 99.68% to total revenue and IPIS & LED luminaries 0.32%.

In terms of product mix, automotive lighting contributed 35.83% to total revenue in 9M FY24, Automotive LED lighting 36.78%, plastic moulded parts 10.94%, rear view mirrors 11.94% and others 4.51%.

In Q3 FY24, automotive lighting contributed 35.98% to total revenue, Automotive LED lighting 37.74%, plastic moulded parts 10.18%, rear view mirrors 12.65% and others 3.45%.

Company has made a breakthrough in the Passenger Car Segment as company has been selected as a supplier for Full LED Head Lamp for a high-end European Car. Company has received the Purchase Order along with advance and has already commenced the Design and Development process for the same. Production of Full LED Head Lamp is scheduled to start in 4th Quarter of Financial Year 2024-25 and this will be an export business for the Company.

In Q3 FY24, domestic OEMs contributed 91.46% to total revenue, domestic replacement market 7.29% and exports 1.25%. In 9M FY24, domestic OEMs contributed 91.46% to total revenue, domestic replacement market 7.29% and exports 1.25%.

In 9M FY24, two-wheelers customers contributed 96.66% to total revenue and four-wheelers 3.34%.

Company is witnessing revival of rural demand and consumer spending and expect demand to continue in Q4 FY24.

During the quarter EV volume increase 34% compared to Q2 FY24. Company’s current EV revenue share is around 6%.

In Q3 FY24, company’s LED share was 51% as most of new orders are on LED side. Going forward management expect LED share to rise further to 65%.

Company continues to benefit from diversified product mix.

In Q3 FY24, Honda two wheeler contributed 29.29% to total revenue, TVS Motor 26.85%, India Yamaha 14.82%, Suzuki Motorcycle 8.57%, Replacement market 7.44%, Eicher Royal Enfield 3.23% and other customers 9.8%.

In 9M FY24, Honda two wheeler contributed 28.31% to total revenue, TVS Motor 26.72%, India Yamaha 13.96%, Suzuki Motorcycle 9.53%, Replacement market 7.29%, Eicher Royal Enfield 3.65% and other customers 10.54%.

Board has recommended issue of bonus shares in the ratio of 1 (one) Bonus equity share of Rs 10 each fully paid up for every 1 (one) existing equity share of Rs 10 each fully paid up (in the ratio of 1:1).

Capex incurred during Q3 FY24 and 9M FY24 was about Rs 20 crore and Rs 71 crore respectively.