In This Article:
Release Date: February 03, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Shriram Pistons & Rings Ltd (NSE:SHRIPISTON) reported its highest-ever numbers for Q3 and the nine-month period of FY25, with a consolidated total income growth of 11.5% year-on-year for Q3.
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The company has outperformed the industry, which grew by low single digits, showcasing its strong market position.
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The acquisition of TGP Precision Engineering Limited is expected to complement previous acquisitions and diversify the business model.
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The company has expanded its domestic aftermarket presence with over 200 touchpoints, improving market visibility and penetration.
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Shriram Pistons & Rings Ltd (NSE:SHRIPISTON) has received approval for its EV powertrain components, positioning it well in the growing electric vehicle market.
Negative Points
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Exports continue to face pressure due to geopolitical tensions, high freight rates, and energy costs, particularly affecting European, Middle Eastern, and South American markets.
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The passenger vehicle segment recorded muted performance despite year-end discounts, indicating challenges in this market segment.
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The gap between standalone and consolidated revenue growth has narrowed, suggesting potential challenges in maintaining growth momentum.
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The company faces challenges in the hydrogen systems market, with significant development and certification requirements.
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There is uncertainty in the export markets, with geopolitical situations affecting demand and leading to a cautious outlook for recovery.
Q & A Highlights
Q: How has Shriram Pistons & Rings progressed in connecting to newer markets in the aftermarket and exports? A: The company has continued to penetrate the aftermarket, growing its domestic market presence with over 200 touchpoints across the country. However, exports have faced challenges due to geopolitical tensions, but the domestic aftermarket has been a success story this year. (Respondent: CEO)
Q: Can you provide an update on the EV powertrain and plastic injection molding business over the next 2-3 years? A: The EV powertrain business is progressing well, with significant actions taken this quarter, including approvals for motors and controllers. The plastic injection molding business is also performing well, with both businesses outgrowing their markets. (Respondent: CEO)
Q: What is the revenue potential for the EV power business? A: While it's difficult to provide exact figures, the potential is significant given the current market capacity and demand for motors, especially in the motorcycle segment. (Respondent: CEO)