Fiem Industries hosted a conference call on May 23, 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

The company delivered strong growth in Q4 FY24 and FY24 driven by uptick in two wheeler volumes. Management expects 2W volume growth to continue in FY25.

The company received orders related to PVs from three customers, which will be completed in next 15 months. Additionally, the company has received RFQs from another three customers.

In FY24, automotive segment contributed 99.62% to total revenue and IPIS & LED luminaries 0.38%.

In terms of product mix, automotive lighting contributed 34.89% to total revenue in FY24, Automotive LED lighting 37.33%, plastic moulded parts 10.80%, rear view mirrors 11.98% and others 5%.

In Q4 FY24, automotive lighting contributed 32.42% to total revenue, Automotive LED lighting 38.78%, plastic moulded parts 10.42%, rear view mirrors 12.1% and others 6.28%.

During FY24, two-wheelers customers contributed 96.67% to total revenue and four-wheelers 3.33%.

In FY24, Honda two wheeler contributed 28.49% to total revenue, TVS Motor 26.36%, India Yamaha 14.18%, Suzuki Motorcycle 9.45%, Replacement market 7.04%, Eicher Royal Enfield 3.43% and other customers 11.05%.

In Q4 FY24, Honda two wheeler contributed 28.97% to total revenue, TVS Motor 25.42%, India Yamaha 14.74%, Suzuki Motorcycle 9.25%, Replacement market 6.39%, Eicher Royal Enfield 2.87% and other customers 12.36%.

In FY24, domestic OEMs contributed 91.64% to total revenue, domestic replacement market 7.04% and exports 1.32%. In Q4 FY24, domestic OEMs contributed 92.09% to total revenue, domestic replacement market 6.39% and exports 1.52%.

Company is witnessing revival of rural demand and consumer spending and expect momentum to continue in FY25.

Management expects organic revenue growth of about 12-15% in FY25.

In FY24, company’s LED share was 52% as most of new orders are on LED side. Going forward management expect LED share to rise further to 70%.

Company continues to benefit from diversified product mix.

Capex incurred during FY24 was approx. Rs 85.8 crore. Moreover, the company guided major capex of Rs 250-300 crore in next 2 years to drive growth.

The board recommended a final dividend of Rs 20 per equity share of face value of Rs 10 each for Financial Year 2023-24. Record date for the purpose is 24 July 2024.