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Automotive Axles hosted a conference call on May 18, 2023.
In the conference call the company was represented by Dr N Muthukumar – President & COO Meritor HVS
India, Mr Nagaraja Gargeshwari – President & Whole Time Director,
Automotive Axles and Mr S Ranganathan – Chief Financial Officer, Automotive
Axles.
Key takeaways of the call
Company is geared
up with capacity to cater to rising market demand. Company expects MHCV market
to grow between 5-8% in FY24.
Company took Cost
reduction measures at organization and plant level. Through Continuous Focus on
Mission 25 initiatives, company expects significant savings going ahead.
Cost reduction initiatives and sustainable
manufacturing is expected to offset inflationary pressure.
Management
intends to achieve 80% of Power consumption through renewable energy by 2028.
Migration to renewable energy will help the company to improve its EBITDA
margin.
Company
clocked its highest ever sales in FY23, even though MHCV production was lower
compared to FY19. This performance was driven by new product launches and operational
excellence.
Management is
confident of growing ahead of the market in FY24 driven by Increase share of
business with OE and e-mobility business.
In FY23,
company launched new products such as MS 109, 160 EVO, Dia 325 Brake and Dia
394 Brakes etc.
New Product
Development (NPD) for various platforms would act as a strong foundation to
propel the growth of the company going forward.
Company
intends to capitalize on export business opportunities.
Company has also improved its realization per axle,
which has led to value growth on YoY basis.
Cummins plans to accelerate Meritor’s core axle and
brake business.
Company
acquired 26% stake in Torrent Saurya Urja 3, a Wholly Owned Subsidiary of
Torrent Power in April 2023. Purpose of acquisition is to offtake Solar Power
electricity generated from the Project of TSU3PL to the production unit of the
Company situated at Hootagalli Industrial Area.
Board recommended a dividend of Rs 32 per share of Rs
10 each for the Financial Year 2022-23.
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