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

The company is generating cash and is exploring capacity enhancement opportunities post-COVID. Focus on building capability for highly loaded and turbo engines in response to market demand and emission norms. CAPEX plans are not yet finalized; decisions will depend on market evolution, especially influenced by the China market. The company aims to balance capacity expansion with financial viability, keeping cash conservation in mind. CAPEX spent in the nine months up to the report date is approximately Rs. 1,444 crores. Continuous efforts on productivity improvements are in place to build capa

Future growth expectations in sales/revenue/volumes?

Market is gradually maturing with sustained vehicle volumes, including passenger vehicles and heavy trucks. Continued pent-up demand due to COVID-related changes in consumer behavior (preference for personal mobility) expected to support sales. Stringent emission norms and shift towards turbo and highly loaded engines drive demand for advanced technology products. Growth opportunities in hybrid vehicles, which increase content per vehicle. Export potential expected to improve as India attains Euro VI standards and global parity. Capacity utilization currently high (~90-95%), with plans to enha

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

Company expects continued market growth driven by stringent emission norms and increasing demand for turbo and highly loaded engines, especially post-COVID capacity enhancements (Page 16). Operational improvements and cost reduction initiatives targeting 1-2% year-on-year performance improvement have been effective and ongoing (Pages 10, 9). CAPEX plans are cautious; further expansion tied to market evolution, notably in China and global markets (Page 16). Revenue growth seen with 28% increase in recent quarter; net profit and EBITDA are improving consistently (Pages 6-7). Pricing stra

Federal-Mogul Goetze (India) LtdQ3 FY21

Federal-Mogul Goetze (India) Ltd Q3 FY21 Earnings Call Analysis

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

Price: ₹441P/E: 13.6Market Cap: ₹2.5K Cr

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

Market is gradually maturing with sustained vehicle volumes, including passenger vehicles and heavy trucks.
Continued pent-up demand due to COVID-related changes in consumer behavior (preference for personal mobility) expected to support sales.
Stringent emission norms and shift towards turbo and highly loaded engines drive demand for advanced technology products.
Growth opportunities in hybrid vehicles, which increase content per vehicle.
Export potential expected to improve as India attains Euro VI standards and global parity.
Capacity utilization currently high (~90-95%), with plans to enhance capacity post-COVID based on market evolution.
Cash being allocated strategically for capacity enhancement in turbo/highly loaded engine segments.
Aftermarket business may face challenges due to improved vehicle durability but offset by digitization initiatives.
Overall, optimistic about sustained growth, with focus on technology, market share expansion, and operational efficiency.

Margin guidance

Category 3

Company expects continued market growth driven by stringent emission norms and increasing demand for turbo and highly loaded engines, especially post-COVID capacity enhancements (Page 16).
Operational improvements and cost reduction initiatives targeting 1-2% year-on-year performance improvement have been effective and ongoing (Pages 10, 9).
CAPEX plans are cautious; further expansion tied to market evolution, notably in China and global markets (Page 16).
Revenue growth seen with 28% increase in recent quarter; net profit and EBITDA are improving consistently (Pages 6-7).
Pricing strategies and escalator contracts help offset raw material inflation, aiding margin sustainability (Pages 14-15).
Export potential expected to improve as Indian products meet global standards with Euro VI emission compliance (Page 12).
Overall, earnings growth is expected to be sustainable through volume growth, operational efficiency, new technology adoption, and market expansion, though some uncertainties remain due to market and regulatory factors (Pages 9-16).

See what Federal-Mogul Goetze (India) Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

- There is no explicit mention of any immediate or planned fundraising through debt or equity. - Management is currently conserving cash and focusing on operational efficiency and CAPEX only after market conditions improve. - They have good cash generation and liquid cash of Rs.1,057 million as of Dec 31, 2020, with Rs. 277 million cash generated in the last quarter. - The company is exploring capacity enhancement opportunities post-COVID but is cautious about committing to CAPEX until market evolution is clearer, especially in turbo and highly loaded engine segments. - Regarding equity, there have been multiple offers for sale (OFS) by promoters to meet public shareholding norms, but these were impacted by COVID and negative market sentiment. - The company has applied for an extension with SEBI to comply with minimum public shareholding requirements, indicating no immediate pressure to raise equity capital. In summary, no immediate fundraising via debt or new equity appears planned; focus remains on cash conservation and selective CAPEX.

Order book

The document on page 16 does not explicitly mention the current or expected order book or pending orders for Federal Mogul Goetze India Limited. However, related insights include: - The company is generating cash and exploring opportunities for capacity enhancement, especially for turbo and highly loaded engines, indicating ongoing and potential orders in these segments. - They are closely monitoring market evolution before confirming CAPEX plans, suggesting order intake is dependent on market demand. - The global market, including China operations which are three times larger, provides guidance, implying alignment with international demand trends. - There is optimism about improved CAPEX absorption as the market matures, hinting at a positive order pipeline. - No specific numerical figures on order book or pending orders are provided in the discussed portion.

See what Federal-Mogul Goetze (India) Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes

The company is generating cash and is exploring capacity enhancement opportunities post-COVID.
Focus on building capability for highly loaded and turbo engines in response to market demand and emission norms.
CAPEX plans are not yet finalized; decisions will depend on market evolution, especially influenced by the China market.
The company aims to balance capacity expansion with financial viability, keeping cash conservation in mind.
CAPEX spent in the nine months up to the report date is approximately Rs. 1,444 crores.
Continuous efforts on productivity improvements are in place to build capacity alongside CAPEX.
The company is cautiously observing market scenarios before committing to further capital expenditure.
Strategic growth is tied to emerging trends like turbo and highly loaded engines and compliance with stricter emission regulations.

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Federal-Mogul Goetze (India) Ltd Q3 FY21 Earnings Call Analysis

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What Federal-Mogul Goetze (India) Ltd's management said in earlier quarters