Endurance Technologies

Tanishk_Ojha · 2023-09-07T01:42:07+00:00

August 2023 Conference Call In India till date in FY24, Rs. 3,070 million of new business was won from OEMs other than Bajaj Auto which included Royal Enfie...

Tanishk_Ojha

August 2023 Conference Call

In India till date in FY24, Rs. 3,070 million of new business was won from OEMs other than Bajaj Auto which included Royal Enfield, TVS, Hero MotoCorp, Jaguar Land Rover, Mahindra & Mahindra and Case New Holland. This business win of Rs. 3,070 million was all new business.
The total business win for EVs till date is Rs. 6,000 million. These orders are mainly from Ather Energy, Bajaj Auto, Hero Electric, Greaves Electric, and Aptiv.

For ABS, we are at 400,000 units per annum and with dual channel we will be 600,000; we believe the market is about 3 million to 3.5 million, so, we are still small so the growth opportunity is big, considering we are technology-proven, competitive, with no single quality/warranty issue in the last two years.
I think the raw material trend is going down from July especially on aluminum. There is a 9% decrease in the aluminum alloy rates, which is a good thing for us. Steel has also gone down by about 1.8%. But raw material prices are nowhere near the levels of FY21 when RMC percentage was at 62%. But as the raw material percentage goes down, the EBITDA percentage and the PAT percentage will improve because we are net debt-free.
On the CAPEX side, India will see around Rs. 350 crores and Europe will see €60 million.

Replacement orders are actually the existing models of customers being replaced with new models or having upgradations, but they do give a fresh LOI. For e.g. HMSI is going for new upgrades in scooters. It is very important to get these LOIs also, so that you continue your share of business. So, for us replacement is when the existing vehicle is being upgraded or replaced by the customer. The new order is a completely new order for new vehicles or for new products. For example, if I’m not supplying brakes to Hero and I’m starting brakes to Hero, we have a new order. So, new is completely new, for a new vehicle like Triumph or Chetak or Harley-Davidson. Or if I’m not supplying a product to an OEM, when we start a new product, so that is new.