Talbros Automotive Components

On consolidated basis

Quarter ended September 2024 compared with Quarter ended September 2023.

Net sales (including other operating income) of Talbros Automotive Components has increased 11% to Rs 215.38 crore.''Operating profit margin has jumped from 14.51% to 15.09%, leading to 15.41% rise in operating profit to Rs 32.50 crore.''Raw material cost as a % of total sales (net of stock adjustments) decreased from 53.88% to 52.89%. ''Purchase of finished goods cost fell from 0.59% to 0.53%. ''Employee cost increased from 10.30% to 10.66%. ''Other expenses rose from 20.49% to 20.87%. ''

Other income rose 83.85% to Rs 4.78 crore.''PBIDT rose 21.20% to Rs 37.28 crore.''Provision for interest rose 0.29% to Rs 3.4 crore.''Loan funds rose to Rs 94.18 crore as of 30 September 2024 from Rs 85.41 crore as of 30 September 2023.''Inventories declined from Rs 131.89 crore as of 30 September 2023 to Rs 127.60 crore as of 30 September 2024.''Sundry debtors were higher at Rs 240.22 crore as of 30 September 2024 compared to Rs 188.93 crore as of 30 September 2023.''Cash and bank balance rose to Rs 49.19 crore as of 30 September 2024 from Rs 4.37 crore as of 30 September 2023.''Investments rose to Rs 214.26 crore as of 30 September 2024 from Rs 194.88 crore as of 30 September 2023 .''

PBDT rose 23.79% to Rs 33.88 crore.''Provision for depreciation rose 33.55% to Rs 8.08 crore.''Fixed assets increased to Rs 239.22 crore as of 30 September 2024 from Rs 189.17 crore as of 30 September 2023.''Intangible assets declined from Rs 0.51 crore to Rs 0.46 crore.''

Profit before tax grew 21.01% to Rs 25.80 crore.''Share of profit/loss was 5.53% higher at Rs 4.2 crore.''Provision for tax was expense of Rs 6.59 crore, compared to Rs 5.27 crore.''Effective tax rate was 21.97% compared to 20.83%.

Minority interest was nil in both the periods.''Net profit attributable to owners of the company increased 16.87% to Rs 23.41 crore.''

Equity capital stood at Rs 12.35 crore as of 30 September 2024 to Rs 12.35 crore as of 30 September 2023.''Per share face Value remained same at Rs 2.00.''

Promoters' stake was 58.43% as of 30 September 2024 ,compared to 58.42% as of 30 September 2023 .''

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Talbros Automotive Components has increased 11.38% to Rs 419.72 crore.''

Operating profit margin has jumped from 14.20% to 14.82%, leading to 16.18% rise in operating profit to Rs 62.19 crore.''Raw material cost as a % of total sales (net of stock adjustments) decreased from 53.94% to 53.41%. ''Purchase of finished goods cost fell from 0.65% to 0.51%. ''Employee cost increased from 10.70% to 11.07%. ''Other expenses fell from 20.34% to 20.19%. ''

Other income rose 90.35% to Rs 9.67 crore.''PBIDT rose 22.61% to Rs 71.86 crore.''Provision for interest rose 1.97% to Rs 6.73 crore.''Loan funds rose to Rs 94.18 crore as of 30 September 2024 from Rs 85.41 crore as of 30 September 2023.''Inventories declined from Rs 131.89 crore as of 30 September 2023 to Rs 127.60 crore as of 30 September 2024.''Sundry debtors were higher at Rs 240.22 crore as of 30 September 2024 compared to Rs 188.93 crore as of 30 September 2023.''Cash and bank balance rose to Rs 49.19 crore as of 30 September 2024 from Rs 4.37 crore as of 30 September 2023.''Investments rose to Rs 214.26 crore as of 30 September 2024 from Rs 194.88 crore as of 30 September 2023 .''

PBDT rose 25.23% to Rs 65.13 crore.''Provision for depreciation rose 32.37% to Rs 15.95 crore.''Fixed assets increased to Rs 239.22 crore as of 30 September 2024 from Rs 189.17 crore as of 30 September 2023.''Intangible assets declined from Rs 0.51 crore to Rs 0.46 crore.''

Profit before tax grew 23.07% to Rs 49.18 crore.''Share of profit/loss was 2.29% lower at Rs 7.25 crore.''Provision for tax was expense of Rs 12.4 crore, compared to Rs 9.94 crore.''Effective tax rate was 21.97% compared to 20.98%.

Minority interest was nil in both the periods.''Net profit attributable to owners of the company increased 17.60% to Rs 44.03 crore.''

Equity capital stood at Rs 12.35 crore as of 30 September 2024 to Rs 12.35 crore as of 30 September 2023.''Per share face Value remained same at Rs 2.00.''

Promoters' stake was 58.43% as of 30 September 2024 ,compared to 58.42% as of 30 September 2023 .''

Full year results analysis.

Net sales (including other operating income) of Talbros Automotive Components has increased 20.26% to Rs 778.27 crore.''Operating profit margin has jumped from 13.49% to 14.73%, leading to 31.33% rise in operating profit to Rs 114.65 crore.''Raw material cost as a % of total sales (net of stock adjustments) decreased from 53.99% to 53.29%. ''Purchase of finished goods cost fell from 0.76% to 0.64%. ''Employee cost decreased from 10.81% to 10.50%. ''Other expenses fell from 21.11% to 20.72%. ''

Other income rose 103.23% to Rs 12.6 crore.''PBIDT rose 36.10% to Rs 127.25 crore.''Provision for interest rose 16.81% to Rs 13.27 crore.''Loan funds rose to Rs 98.70 crore as of 31 March 2024 from Rs 86.89 crore as of 31 March 2023.''Inventories declined from Rs 132.53 crore as of 31 March 2023 to Rs 126.77 crore as of 31 March 2024.''Sundry debtors were higher at Rs 210.33 crore as of 31 March 2024 compared to Rs 168.53 crore as of 31 March 2023.''Cash and bank balance declined from Rs 8.10 crore as of 31 March 2023 to Rs 5.20 crore as of 31 March 2024.''Investments rose to Rs 185.82 crore as of 31 March 2024 from Rs 126.64 crore as of 31 March 2023 .''

PBDT rose 38.76% to Rs 113.98 crore.''Provision for depreciation rose 9.23% to Rs 25.91 crore.''Fixed assets increased to Rs 218.96 crore as of 31 March 2024 from Rs 175.56 crore as of 31 March 2023.''Intangible assets declined from Rs 0.67 crore to Rs 0.56 crore.''

Profit before tax grew 50.75% to Rs 88.07 crore.''Share of profit/loss was 36.23% higher at Rs 16.17 crore.''Provision for tax was expense of Rs 36.72 crore, compared to Rs 14.71 crore.''Effective tax rate was 25.03% compared to 20.93%.

Minority interest was nil in both the periods.''Net profit attributable to owners of the company increased 97.88% to Rs 109.98 crore.''

Equity capital stood at Rs 12.35 crore as of 31 March 2024 to Rs 12.35 crore as of 31 March 2023.''Per share face Value remained same at Rs 2.00.''

Promoters' stake was 58.43% as of 31 March 2024 ,compared to 58.42% as of 31 March 2023 .''

Cash flow from operating activities increased to Rs 66.75 crore for year ended March 2024 from Rs 56.58 crore for year ended March 2023.''Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 60.10 crore, compared to Rs 42.06 crore during the year ended March 2023.''

Other Highlights

The board approved an interim dividend of Rs 0.20 per equity share of face value of Rs 2 each for the Financial Year 2024-25. The Record date for the purpose is 29 November 2024. In H1 FY25, exports contributed 15% of Gaskets Revenue, 55% of Forgings Revenue, 19% Marelli Talbros Chassis Systems and 4% of Talbros Marugo Rubber.

In H1 FY25, gasket & Heat Shield Business grew 26% YoY. Forgings business grew 15% YoY, TMR grew 84% and MTCS grew 29% on YoY basis.

In H1 FY25, 2&3 Wheelers contributed 17% to revenue, Passenger Vehicle 34%, HCV & LCV 22%, Agri & Off Loaders 13% and others 14%.

Management Comments :
Anuj Talwar, Managing Director, Talbros Automotive Components said, 'During the first half of FY25, TACL demonstrated substantial growth in both business performance and profitability despite a slowdown in OEM manufacturing. This progress was fueled by effective execution of a robust order pipeline and improvements in operational efficiencies. For H1 FY25, total revenue grew by 12% YoY to Rs. 429 crores, with EBITDA Margins at 16.7%. We have been working on improving our margins for past few quarters and we are able to achieve that in the first half as well, where are margins has improved by 140bps over H1 FY24. Over the last 18 months, we secured several substantial new orders exceeding Rs. 2,000 crores. A number of these projects are now entering the commercialization phase. This marks an important step as we transition from order acquisition to execution, setting the stage for revenue generation and reinforcing our growth trajectory. The trend towards EV is expanding, and we`ve also strengthened our EV portfolio, securing orders from both domestic and overseas OEM and expanding our focus on EVs through our JV partner and from standalone business in the Forgings business. To fully leverage the expanding opportunities in both domestic and international markets, we will maintain a diversified and strategically hedged approach as an auto component provider. Our goal is to ensure that we remain resilient to market fluctuations and able to meet varied customer demands by having a balanced exposure across different segments, geographies, and product lines. Capitalizing on order inflows from leading OEMs, we anticipate a strong upward trajectory in our business and profitability with increased focus on expanding exports business which shall assist in improving margins going ahead.'

Talbros Automotive Components : Consolidated Results

' Quarter ended Year to Date Year ended Particulars 202409 202309 Var.(%) 202409 202309 Var.(%) 202403 202303 Var.(%) Net Sales (including other operating income) 215.38 194.03 11.00 419.72 376.85 11.38 778.27 647.18 20.26 OPM (%) 15.09 14.51 58 bps 14.82 14.20 61 bps 14.73 13.49 124 bps OP 32.50 28.16 15.41 62.19 53.53 16.18 114.65 87.30 31.33 Other Inc. 4.78 2.60 83.85 9.67 5.08 90.35 12.60 6.20 103.23 PBIDT 37.28 30.76 21.20 71.86 58.61 22.61 127.25 93.50 36.10 Interest 3.40 3.39 0.29 6.73 6.60 1.97 13.27 11.36 16.81 PBDT 33.88 27.37 23.79 65.13 52.01 25.23 113.98 82.14 38.76 Depreciation 8.08 6.05 33.55 15.95 12.05 32.37 25.91 23.72 9.23 PBT 25.80 21.32 21.01 49.18 39.96 23.07 88.07 58.42 50.75 Share of Profit/(Loss) from Associates 4.2 3.98 5.53 7.25 7.42 -2.29 16.17 11.87 36.23 PBT before EO 30 25.3 18.58 56.43 47.38 19.10 104.24 70.29 48.30 EO Income 0 0 - 0 0 - 42.46 0 - PBT after EO 30 25.3 18.58 56.43 47.38 19.10 146.7 70.29 108.71 Taxation 6.59 5.27 25.05 12.4 9.94 24.75 36.72 14.71 149.63 PAT 23.41 20.03 16.87 44.03 37.44 17.60 109.98 55.58 97.88 Minority Interest (MI) 0 0 - 0 0 - 0 0 - Net profit 23.41 20.03 16.87 44.03 37.44 17.60 109.98 55.58 97.88 P/(L) from discontinued operations net of tax 0 0 - 0 0 - 0 0 - Net profit after discontinued operations 23.41 20.03 16.87 44.03 37.44 17.60 109.98 55.58 97.88 EPS (Rs)* 3.79 3.24 16.87 7.13 6.07 17.60 12.87 9.00 42.98 * EPS is on current equity of Rs 12.35 crore, Face value of Rs 2, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database