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Stand-alone Revenue: INR181 crores, increased by 6.33% quarter on quarter.
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Stand-alone Net Profit: INR18.36 crores, up from INR18 crores in the previous quarter.
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MEMCO Total Income: INR13.04 crores.
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MEMCO Net Profit: INR0.45 crores.
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MFT Total Income: INR27.3 crores.
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EMOSS Revenue: INR17 crores, down from INR46 crores in the previous quarter.
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Stand-alone EBITDA Margin: 20.5%.
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Stand-alone PAT Margin: 10.1%.
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Consolidated Total Income: INR238.8 crores, decreased by 9.2%.
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Consolidated EBITDA: INR35.6 crores, increased by 30.98%.
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Consolidated PBT: INR19.6 crores.
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Consolidated PAT: INR8.4 crores, with a margin of 3.5%.
Release Date: November 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Precision Camshafts Ltd (BOM:539636) achieved a 6.33% increase in revenue quarter on quarter, reaching INR181 crores.
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The company's EBITDA margin was strong at 20.5%, with a PAT margin of 10.1% on a stand-alone basis.
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Subsidiary MEMCO showed improvement with a total income of INR13.04 crores and a net profit of INR0.45 crores.
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The company has a robust order book for the Camshaft business extending up to 2030, indicating long-term business security.
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Precision Camshafts Ltd is actively expanding its solar capacity, aiming to double it from 15 megawatts to 30 megawatts, which could reduce operational costs.
Negative Points
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The consolidated total income for Q2 decreased by 9.2% to INR238.8 crores, indicating challenges in overall business performance.
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EMOSS, the e-mobility subsidiary in the Netherlands, experienced a significant revenue dip due to the recessionary environment in Europe.
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The geopolitical instability in Europe, including the Russia-Ukraine conflict, has led to a shortage of parts and increased vehicle costs.
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The demand for e-mobility retrofit solutions in India is slower than expected, impacting growth projections.
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The company's German subsidiary, MFT, is facing ongoing profitability challenges, with no immediate resolution in sight.
Q & A Highlights
Q: What portion of the Camshafts business comes from Europe, and what growth is expected in the next two to three years? A: About 50% of the business is domestic, and 50% is export, with approximately 20% going to Europe. The growth outlook is robust with a strong order book up to 2030, but specific growth figures for the next two to three years are not provided.
Q: What is the progress on the EMOSS business in Europe, and when is a revival expected? A: EMOSS is facing significant headwinds due to delayed decision-making and subsidy shifts in Europe. A recovery is expected in two to three quarters, but specific scale projections are not available.