NDR Auto Components hosted a conference call on Feb 8, 2024.
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 entered
into business with Hyundai Transys, to commence work for seat-trim solutions to
Hyundai Transys. Board approved the capital expenditure of approx Rs 8.18 crore
towards existing product, “Trims” for this purpose.
Existing capacity
and utilization for trim sets is 13 lakh and approx. 75% respectively. Proposed
capacity addition is 0.61 lakh trim sets by FY25.
The Company has
been empaneled as T2 supplier to Hyundai and will commence supply from January
2025. The seating solutions will be manufactured at the Company’s manufacturing
facility in Bangalore, which is in close proximity to Hyundai’s manufacturing
operations.
Additionally,
company has entered into a technical assistance agreement with Hayashi Telempu
for the supply of sun shade, which it will supply, to Maruti and Toyota
automobiles. Board approved the capital expenditure of approx. Rs 8.18 crore towards
this new programme. This new product will be manufactured at the Company’s
Plant situated at Bengaluru.
Trims project
will have a revenue potential of around Rs 80 crore annually. Similarly,
management expect revenue potential of Rs 35 crore from sun shade investment.
Capacity addition
plans are in line with the company’s business strategy of enhancing its scale,
technical partnership and offerings.
Company is enhancing
its participation in the strong growth prospects of Maruti Suzuki and Toyota.
Seats presently
comprise 2 -3% of the OEM’s cost. Advancements in automobile technology,
increasing requirements and faster speeds can drive this cost up.
Company intends
to increase its content per vehicle by adding more products to its portfolio.
Company further aims to increase its client base.
In addition to
gaining market share, management stated that its product portfolio is becoming
premium.
Company has adequate
land availability and moderate capacity utilization levels across plants, which
translates to low capex outlay to growing opportunity.
In Q3 FY24,
capacity utilization stood at around 75%. Management guided capex of about Rs
20 crore in FY25.
Company appointed
a new Chief Financial Officer, Mr. Mohit Kumar Jain. Mohit earlier worked with
Lumax Management Services.
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