NDR Auto Components hosted a conference call on Aug 8, 2023.
In the conference call, company was represented by: Pranav Relan- Whole Time
Director, Mr Vinod Kumar– Chief Financial Officer and Mr Sanjiv Kumar –
Financial Advisor.
Key takeaways of the call
Company is
focused of increasing the number of OEMs it caters. In addition, company intends
to expand its portfolio going forward.
In Q1 FY24, capacity
utilization was between 80-85%. For Gujrat facility, it was 40%.
During June 2023
quarter, company sold about 5 lakh two-wheeler frames and 7 lakh four-wheeler
frames.
In FY24, company
expects capex of Rs 20-30 crore.
Company intends
to increase its content per vehicle by adding more products to its portfolio.
Company supply
seating component to Bharat Seats, the demand for the product is indirectly
driven by production volume of Maruti Suzuki. Company has 33% Business Share in
Maruti Suzuki.
Company is
working towards increasing its market share with Maruti Suzuki. Company’s
current share of business in Fronx and Jimny model is around 50%.
Management
indicated that, company is open to inorganic growth.
The enforcement
of BS-VI standards of safety and emission is anticipated to help the export
market expand, and benefit players like NDR auto components in India.
India is poised to
emerge as an outsourcing hub. Going forward, management indicated that demand
for automobile would remain upbeat with rising per capita income, Improvement
in road infrastructure and national connectivity. The old vehicle scrappage
policy 2021 will further provide impetus to automobile demand.
Foreign players
prefer India because it is a cost-effective location for manufacturing, which
bodes well for the auto ancillary market.
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