NDR Auto Components hosted a conference call on May 22, 2024. In the conference call, company was represented by: Pranav Relan- Whole Time Director, Mr. Mohit Kumar Jain– Chief Financial Officer and Mr. Rajat Bhandari– Executive Director & Company Secretary.

Key takeaways of the call

Company is enhancing its participation in the strong growth prospects of Maruti Suzuki and Toyota. The company entered into a technical assistance agreement with global major, Hayashi Telempu for the supply of sun shades to Maruti Suzuki and Toyota Kirloskar.

Company intends to increase its content per vehicle by adding more products to its portfolio. Company further aims to increase its client base.

In line with business strategy of expanding OEM relationships and widening product portfolio, the company entered into an agreement with Hyundai Transys to deliver seat - trim solutions to KIA.

The company will commence supply to Hyundai from January 2025. Seating Trim solutions will be manufactured at the Company’s manufacturing facility in Bangalore, which is in close proximity to Hyundai Transys’ manufacturing operations.

The company is focusing more on premium products. It is expanding offerings beyond Seats, Frame and Trims.

Seats presently comprise 2 -3% of the OEM’s costs. Advancements in automobile technology, increasing requirements and faster speeds can bump this number up.

Current order book of the company stands around Rs 250-300 crore, which is set to be executed in next 2 years.

Going forward, management expects EBITDA margin to slightly improve.

In Q4 FY24, capacity utilization stood at around 80%. The company has adequate land availability, which provides an edge to enhance capacity at minimal capex.

Management guided capex of about Rs 30 crore in FY25.

The board has recommended a dividend of Rs 3.75 each on equity share having face value of Rs 10 each for the year ended 31 March 2024. The record date for the payment of dividend is July 15, 2024.