SPR Auto Technologies

“So that's why we normally give the guidance that we will grow as per the industry rate, and you will always find us more or less investing into the business following the industry trends.”

“If the end markets are growing at 7%, our growth rate has been far better than 7%.”

“So as I said, we are actually putting in capacities ahead of the market. We are expanding in Pithampur. We have recently expanded in Pathredi.”

“We are also putting up an expansion that is going on in Ghaziabad.”

“We are putting up a complete new plant just next door to our existing plant in Neemrana.”

“We are also putting in a lot of capex in our TGPEL facility. And at the same time, in our interiors facility, we are putting in a lot of capex for growing the business as well as for growing the capacity across multiple product lines that we have in Antolin.”

“So as a result, we don't give those numbers, but it's a very sizable number.”

“High-precision injection molded components are gaining momentum from emerging applications such as ABS systems for 2-wheelers, supported by capacity expansion in Neemrana and Noida.”

“Most of our capacity expansions are backed by firm business orders from all our customers, including aftermarket and export customers.”

“we are also putting in a lot of capacity addition across all the businesses. That will ease out the situation that we have.”

“Our strategy of investing in technology and capacity ahead of demand has allowed us to serve this increase seamlessly across all our customers and segments.”

“And we don't expect that there will be any issue with regards to capacity.”

“Our standalone business grew its total income by 17% year-on-year in Q2 to INR 10,500 million.”

“The EV motors and controllers business continues to scale through our new Coimbatore facility and a growing customer base”

“In a small car, it could be ranging from somewhere around 15% to 18% improved realization.”

“Depending on the bigger vehicles and the kind of levels of sound quality that we need, it could go even up to somewhere around close to 30% to 40%.”

“I think we have maintained a steady 17% growth in the standalone business.”

“The weighted average industry production grew by almost 17%.”

“This demand has been broad-based, supported by the GST 2.0 reforms, resilient rural and urban consumption, improved financing”

“even with the legacy business, we see that with a 7% or 8% market growth and kind of penetration that we have in the electric segment, we will still require more ICE engines in 2030 and 2032.”

“The customers have given us a deadline that by April, they have to introduce this to most of their end customers, which are the 2-wheeler manufacturers.”

“Our consolidated EBITDA margin for the quarter was 17.9%, which remains healthy for our industry.”

“Margins were temporarily affected by factors that are largely external, including elevated commodity prices, elevated direct material costs like tools, oils, etcetera, a change in the sales mix and the revision in the minimum wages.”

“Commodity movements are usually passed through to our customers under back-to-back arrangements with a lag of about a quarter.”

“We are also increasing the use of renewable power, including the new power purchase agreement with Sunsure for our Pathredi and Neemrana facilities, which is expected to support further optimization of energy costs.”

“But as far as we are concerned, we have completely back-to-back arrangement with our customers. So all RM impacts are normally covered 100%.”

“Even at the increased level of manufacturing that we have because of the market, we are able to maintain a fairly normal level of working capital.”

“in the business in our precision plastic, we have to ensure that the raw material is kept available for at least 3 months of production.”

“Most of the debt that we had have been closed. And hopefully, the results from third quarter will show some improvement.”

“Thus, our businesses continue to generate strong cash, which allows us to fund working capital for higher volumes and to continue investing in capacity and newer technologies ahead of demand apart from looking at more M&A possibilities.”

“We have a fairly good balance sheet. Balance sheet is supported by a fairly good cash balance.”

“During the quarter, we also completed a qualified institutional placement of INR 10,000 million.”

“Well, we are not planning to raise any debt or equity at this stage.”

“So the QIP was completed in the end of August.”

“And presently, we are working with at least 2 or 3 customers with whom we have already given proof of concepts and various discussions are going on.”

“Yes, yes, we are perfectly on track.”

“But presently, as we speak, we are also looking at more acquisitions.”

“So as a result, consciously, we have decided to focus more on defense applications primarily for Army and other”

“What I did say during that time was that we are looking at thermal management, we are looking at mechatronics.”

“Coming to the bottom line, the elevated finance costs by INR 234 million in Q2 FY27 and INR486 million in H1 FY27 to fund the acquisition of the 3 Indian entities of Antolin had a temporary effect, which shall be normalized once the debt is repaid.”

“And then we have also had the impact coming out of the PF regulation and the gratuity regulation, which, of course, gratuity is a onetime impact.”

“While the global environment may remain dynamic in the near term, we are confident in our ability to navigate it.”

“But however, the prices of oil, the prices of direct materials, prices of tools, dyes continues to go up because of the situation of the war.”

“So it all depends on how the war situation will actually pan out. So we are closely watching the situation and accordingly also making strategies to ensure that we are able to cover our costs.”

“But on the direct materials, if the war remains at the condition that it is in, both the wars are still going on, then we expect the prices to go up on the direct material.”

“In Q2 FY27, our consolidated total income grew by 61% year-on-year to INR 16,746 million”

“For the first half, consolidated total income stood at INR 31,738 million, up 56% with EBITDA of INR 5,831 million, up 28%.”

“The powertrain agnostic products now contribute more than 35% of our consolidated revenue and nearly 60% of our business is relatively insulated from shifts in powertrain technology.”

“Excluding this impact, PBT grew by 23% in Q2 of FY27 and 22% in H1 of FY27.”

“This is over and above our existing regular standard businesses of around what we maintain to the tune of around INR 6,000 crores that we are seeing.”