Any current/future new fundraising through debt or equity?

There is no explicit mention of any current or planned new fundraising through debt or equity in the provided document. The company has no net debt as of Q3 FY24; standalone books show net cash of Rs. 3,939 million and consolidated books show net cash of Rs. 4,636 million. CRISIL reaffirmed their credit rating as AA+ Stable for long-term and A1+ for short-term funding, reflecting strong financials and no immediate need for new borrowings. The company is investing in capacity expansion, such as a Rs. 50 million capex in Europe, but this appears to be funded through existing resources. Overall,

Any current/future capex/capital investment/strategic investment?

Investing EUR 50 million in FY24 to expand production capacity in Europe for new orders, mainly EV and hybrid products. Acquiring new land and constructing new buildings to create space for future growth and order ramp-up. Expanded aluminium alloy wheels plant at Chakan to increase capacity to 5.5 million wheels per annum, starting SOP from April 2024. Increasing aluminium forging capacity at Waluj, Aurangabad from 1,250 to 1,750 metric tonnes per annum, with new presses started in FY24 and FY25. Starting new disc brake assembly plant at Waluj to support increased volume; SOP underway

Future growth expectations in sales/revenue/volumes?

Two wheeler industry growth expected to continue, with high growth in scooters and motorcycles, especially in Q3 and Q4 FY24. Focus on higher-end suspension for bikes above 150cc and exports (e.g., KTM) to drive growth. Increasing 4-wheeler share from 26% to 45% by FY30 through aluminium castings, forgings, alloy wheels, brakes, and suspension products. New order wins worth Rs. 38,720 million to peak in FY26, covering suspension, castings, brakes, and EV products. Rapid growth expected from EV business, including battery castings, brake assemblies, and new electronic products with existing and

Future growth expectations in earnings/operating earnings/profits/EPS?

Endurance expects growth from the two-wheeler industry, especially higher-end suspension for bikes above 150cc and exports to KTM globally. Growth is anticipated from increasing orders in brakes, suspension, alloy wheels, and castings, particularly for electric vehicles (EVs) and premium bikes. The aluminum castings and forgings segment, focused on 4-wheelers, is targeted to grow significantly, increasing 4-wheeler business share from 26% to 45% by FY30. New orders worth Rs. 38,720 million (peak in FY26) from multiple OEMs including Suzuki, Bajaj, TVS, Hero MotoCorp will drive earnings growth.

Current/ Expected Orderbook/ Pending Orders?

Rs. 38,720 million of new business won since FY20 in India, expected to peak in FY26 (Page 6). Rs. 9,410 million of new business won till Q3 FY24 from OEMs excluding Bajaj, to peak in FY26 (Page 5). Rs. 6,777 million of EV-related orders won till date, primarily from HMSI, Ather Energy, Bajaj Auto, Hero Electric, Greaves Electric (Page 6). Rs. 1,285 million four wheeler business won this year mainly from Punch Powertrain, Tata Motors, Mahindra & Mahindra, Jaguar Land Rover (Page 5). Rs. 1,050 million RFQs pipeline at Maxwell (Page 7). Rs. 17,266 million of RFQs from OEMs pending (Page 5). Maxw

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Endurance Technologies LtdQ4 FY25Auto Components

Endurance Technologies Ltd Q4 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹2,622P/E: 37.1Market Cap: ₹35.8K CrSector: Auto Components

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Two wheeler industry growth expected to continue, with high growth in scooters and motorcycles, especially in Q3 and Q4 FY24.
→Focus on higher-end suspension for bikes above 150cc and exports (e.g., KTM) to drive growth.
→Increasing 4-wheeler share from 26% to 45% by FY30 through aluminium castings, forgings, alloy wheels, brakes, and suspension products.
→New order wins worth Rs. 38,720 million to peak in FY26, covering suspension, castings, brakes, and EV products.
→Rapid growth expected from EV business, including battery castings, brake assemblies, and new electronic products with existing and new OEMs like HMSI, Ather, Hero Electric.
→Expansion of capacity in aluminium forgings, die castings, and brake assemblies to support growth.
→Europe business growing, with orders of EUR 29 million in the last 9 months and investments of EUR 50 million to increase production capacity.
→Aftermarket sales targeting 10% of India sales by FY28 with expansion in exports.

Margin guidance

Category 3

→Endurance expects growth from the two-wheeler industry, especially higher-end suspension for bikes above 150cc and exports to KTM globally.
→Growth is anticipated from increasing orders in brakes, suspension, alloy wheels, and castings, particularly for electric vehicles (EVs) and premium bikes.
→The aluminum castings and forgings segment, focused on 4-wheelers, is targeted to grow significantly, increasing 4-wheeler business share from 26% to 45% by FY30.
→New orders worth Rs. 38,720 million (peak in FY26) from multiple OEMs including Suzuki, Bajaj, TVS, Hero MotoCorp will drive earnings growth.
→Focus on product mix improvement and raw material cost control to enhance EBITDA margins despite high raw material costs.
→Consolidated EBITDA margins improved from 11.8% to 13.1% YoY in first nine months of FY24; standalone business grew 13.5%.
→Maxwell aims profitable growth from FY25 onwards after initial losses.
→Overall PAT grew 37.1% YoY in first nine months FY24, reflecting robust earnings growth trajectory.

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Fundraise plans

→There is no explicit mention of any current or planned new fundraising through debt or equity in the provided document.
→The company has no net debt as of Q3 FY24; standalone books show net cash of Rs. 3,939 million and consolidated books show net cash of Rs. 4,636 million.
→CRISIL reaffirmed their credit rating as AA+ Stable for long-term and A1+ for short-term funding, reflecting strong financials and no immediate need for new borrowings.
→The company is investing in capacity expansion, such as a Rs. 50 million capex in Europe, but this appears to be funded through existing resources.
→Overall, the financial position is strong with no net debt, and there is no indication of any immediate or future equity fundraising or new debt issuance mentioned in this report.

Order book

Yes

→Rs. 38,720 million of new business won since FY20 in India, expected to peak in FY26 (Page 6).
→Rs. 9,410 million of new business won till Q3 FY24 from OEMs excluding Bajaj, to peak in FY26 (Page 5).
→Rs. 6,777 million of EV-related orders won till date, primarily from HMSI, Ather Energy, Bajaj Auto, Hero Electric, Greaves Electric (Page 6).
→Rs. 1,285 million four wheeler business won this year mainly from Punch Powertrain, Tata Motors, Mahindra & Mahindra, Jaguar Land Rover (Page 5).
→Rs. 1,050 million RFQs pipeline at Maxwell (Page 7).
→Rs. 17,266 million of RFQs from OEMs pending (Page 5).
→Maxwell has won Rs. 3,785 million business since FY22, expected to be realized fully by FY27 (Page 7).

Capex plans

Yes

→Investing EUR 50 million in FY24 to expand production capacity in Europe for new orders, mainly EV and hybrid products.
→Acquiring new land and constructing new buildings to create space for future growth and order ramp-up.
→Expanded aluminium alloy wheels plant at Chakan to increase capacity to 5.5 million wheels per annum, starting SOP from April 2024.
→Increasing aluminium forging capacity at Waluj, Aurangabad from 1,250 to 1,750 metric tonnes per annum, with new presses started in FY24 and FY25.
→Starting new disc brake assembly plant at Waluj to support increased volume; SOP underway to supply Hero MotoCorp (April 2024) and HMSI (Q3 FY25).
→Surface-mounted technology line for Battery Management Systems (BMS) assembly started at Waluj in Feb 2024, aiming for peak business by FY26.
→Focus on inorganic growth through acquisitions and technology agreements to access new proprietary products and advanced electronics.

How does Endurance Technologies Ltd rank vs peers in Auto Components?

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