Endurance Technologies Ltd Q4 FY25 Earnings Analysis

- Endurance Technologies projects continued positive growth with double-digit percentages observed in recent quarters (Page 14). - European subsidiaries grew revenues by 16.1% and EBITDA by 22.1% despite a challenging market (Page 4). - Q3 FY25 revenues were Rs. 21.9 billion (standalone) and Rs. 28.8 billion (consolidated), reflecting year-on-year growth of 9.2% and 11.3% respectively (Page 11). - Orders worth Rs. 7,806 million won this year (excluding Bajaj) with 50% attributed to electric vehicles and 40% to 4-wheelers, signaling strong future potential (Page 9). - New large orders for 4W suspension and castings expected to increase sales and margins, particularly from exports and sophisticated aluminum casting (Pages 17-18). - Plans to begin 4W braking business ramp-up target the last quarter of FY26 (Page 15). - Expansion via acquisition (Stöferle) and new plants (AURIC Shendra, advanced R&D for suspension) support medium-term growth (Pages 13, 6, 17).

- Endurance Technologies has shown consistent double-digit growth in recent quarters, with expectations for similar future growth. - Consolidated earnings per share (EPS) more than doubled since IPO FY17, from Rs. 23.48 to Rs. 48.38 in FY24, and Rs. 56.97 for the trailing 12 months. - Q3 consolidated profit after tax grew 21.1% year-on-year. - EBITDA growth in Europe was strong despite a challenging market, with 26.7% increase in Q3 FY25. - The acquisition of Stöferle is expected to add up to €80 million in sales and €15-16 million in EBITDA, enhancing strategic position and profitability. - Investments totaling EUR 160 million over the last 5 years underpin technology leadership and profitability. - The company is optimistic for future quarters based on strong order wins and ramp-up in 4W suspension and braking business. - Continuous margin expansion is supported by cost efficiencies in India and Europe.

- AURIC Shendra four-wheeler casting plant: Plant infrastructure to be ready by February 2025, with SOP planned for June 2025. Investment in fully automated die casting machines, advanced machining, and finishing equipment. Includes India's first di-electric powder coating service for EV platforms. - AURIC Bidkin 2W alloy wheel project: Progressing as scheduled to widen OEM customer base. - New future-ready R&D facility (G45) for 2W, 3W, 4W suspensions: Set to start soon; will include advanced labs for innovation, electronics, and testing. - Suspension greenfield facility in India: Location and land finalized, details to be shared in next call. Targeted as India's finest shock absorber facility. - Embedded electronics: Accelerating development of mid/high voltage Battery Management Systems (BMS) and motor control/power electronics solutions, collaborating with semiconductor partners. - Acquisition of Stöferle (Germany): Strategic, with no debt; expands capabilities and customer base, potentially integrating high-pressure die casting components. - Ongoing CapEx: EUR 160 million invested in the last 5 years; future investments targeted at technology and automation.

- There is no mention of any current or planned fundraising through debt or equity in the provided transcript. - Specifically, regarding the acquisition of Stöferle, it was stated that the company will be bought "without cash and without debt." - The European operations, including the Stöferle acquisition, are being managed largely with internal accruals, aiming for early payback. - No explicit references to raising fresh debt or equity capital for other purposes or future projects were noted in the discussion.

- Total new orders won this year (excluding Bajaj Auto): Rs. 7,806 million - Orders secured for AURIC Shendra plant (4-wheeler castings): Rs. 2,200 million - Orders pursued through RFQs currently in hand: Rs. 3.2 billion - Approximately 50% of Rs. 7,806 million orders are for electric vehicles - 40% of Rs. 7,806 million orders pertain to 4-wheeler segments - Aluminum casting orders till date this year: Rs. 3,779 million (from Tata Motors, Valeo, Ather, HMSI, Piaggio, etc.) - Suspension new orders won: Rs. 1,413 million (various OEMs including Hero MotoCorp, HMSI, Kawasaki, TVS) - Brakes new orders won: Rs. 1,710 million (including Hero MotoCorp, Honda, Mahindra, Royal Enfield, TVS) - Transmission clutch assembly new orders: Rs. 524 million - Drive shaft business new orders: Rs. 450 million - Maxwell subsidiary orders: Rs. 2.5 billion - Pursuing Rs. 32 billion in RFQs across various OEM customers outside Bajaj across product segments