JTEKT hosted a conference call on Nov 17, 2022. In the conference call the company was represented by Mr. Hitoshi Mogi- Chairman and Managing Director and Mr. Rajiv Chanana- Director and Chief Financial Officer.

Key takeaways of the call

In H1 FY23, driveline contributed 10% of total revenue and steering & Columns 90%.

In H1 FY23, domestic sales contributed 96% of total sales and exports 4%.

In H1 FY23, in terms of product mix RPS M contributed 21%, CEPS 43%, HPS 10%, Coloum 5%, Axle 8%, Others 12%.

Company has started commercial production of drive shaft with constant velocity joint from beginning of September 2022. Management expect new line of business to expand in future and is ready to make future investments for same.

Currently when constant velocity joint (CVJ) capacity is fully utilized on a double shift basis, it can generate a volume of Rs 120 crore. CVJ would support the company's revenue growth over the medium term, besides aiding in diversification of its product portfolio.

High inflation and increased fuel prices remains a challenge.

Company expects to receive SEBI approval shortly for amalgamation of subsidiary company JTEKT Fuji Kiko with JTEKT India.

Launch of new models from Maruti and honda, which are the customers of the company contributed to higher sales.

In Q2 FY23, maruti contributed 60% to total revenue, Toyota 7%, Honda 6%, Renault Nissan 5%, Mahindra 8%, Tata motors 4%, exports 4% and others 6%.

Company has heavily invested in cost optimization, product innovation, product enhancement, and making supplier relations more agile.

In FY22, capex was primarily towards CVJ expansion and some new product development. Total capex was about Rs 129 crore.

In FY23, company expects capex to be above Rs 100 crore to be spent on backward integration plant, buying additional 850 tonne machines and new product development.

The company has plans to increase adoption of green technology and digitize the supply chain.