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.
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