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NDR Auto Components hosted a conference call on Nov 7, 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 expanding
its offerings beyond seats, trims and BIW.
Going forward,
management expects to clock about 10% EBITDA margin.
Seats presently
comprise 2 -3% of the OEM’s cost. Advancements in automobile technology,
increasing requirements and faster speeds can drive this cost up.
Current order book
stands around Rs 150-200 crore.
Company supply
seating component, demand for which is indirectly driven by production volume
of Maruti Suzuki.
Company is
focused on deepening its relationship with Maruti and Toyota. Management also indicated
that, company’s client base is growing.
Company approved capital expenditure
of approx. Rs 20.64 crore towards new programmes of Maruti Suzuki India. Company
caters to 30% of Maruti’s requirements.
Company’s
capacity utilization at Bangalore plant is approx. 85-90% and at Gujarat plant is
50%. Management expects Gujarat utilization to improve from 2024.
Company intends
to increase its content per vehicle by adding more products to its portfolio.
Management
indicated that, company is open to inorganic growth.
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 vehicle scrappage policy
will further provide impetus to automobile demand.
As of 30th sept 2023,
company has cash of about Rs 30 crore.
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