Tenneco Clean Air India

“our order book is so healthy that it gives us very strong conviction that we will have a nice, healthy double-digit growth that takes us all the way through FY 2030.”

“The plant that we announced earlier, which is coming in the northern part of the country, that should be up for SOP starting March 2027.”

“because of the health of our order book, you can be sure that we will be adding many more plants in the future.”

“which would be in West India, that should kind of begin SOP sometime in July 2027.”

“And the plant that we announced, like yesterday, today, the Clean Air plant in West India, there we are expecting the SOP to start around September 2027.”

“Give it a plus or minus a couple of months here and there, right? It all depends on the customer volumes, etcetera.”

“That plant's also going to run out of capacity very soon. We will keep on adding plants just to meet the sheer crazy growth of the suspension business.”

“A lot of that legacy commodity, let us say, shock absorber lines from Hosur and Bangalore, some of that we will move to West India in this new plant.”

“Exports accounted for INR8,750 million of the total order book.”

“So, you are right, FY 2026 with INR12,400 crores order book, exports came in somewhere between 14%, 20%. This quarter has been a bit less for a variety of reasons.”

“The other reason from a ratio standpoint is our domestic order book has been very, very strong,”

“If you take the just the bar FY 2030 revenues, right, whatever that is, let's say that's X that was planned. We are very happy to report that all of that X is covered”

“So now obviously FY 2031 probably will be at a lesser percentage coverage because there is a lead time, because we have a long sales cycle, there is a lead time to it.”

“market share in clean air solutions for the commercial truck segment increased further to 59% in H1 FY 2027 compared to 58% in FY 2026 and 57% in FY 2025.”

“Remember, a year and a half ago, our market share was only 48%. Now we are at 55%, which for the automotive industry is very, very strong disruption”

“Clean Air and Powertrain Solutions delivered value-added revenue of INR7,218 million in Q2 FY 2027, growing 26.6% year-on-year.”

“Advanced Ride Technologies continued to deliver strong growth, with value-added revenue of INR8,010 million in Q2 FY 2027, an increase of 37.8% year-on-year.”

“we believe that the long-term conditions for export will remain strong.”

“So the end market OEMs, the market has been a bit soft in Western markets.”

“The industry production volume without EV, without Maruti, grew by, let's say, about 13.3%, and our Tenneco sales volume for clean air grew by 18-plus percent.”

“Right now, you know 90% of the Indian market is still running on conventional suspension, but that is drastically changing.”

“The demand is way more on DaVinci than we can supply today. That is the reason why we are scrambling to create space in Hosur in our plant to allow for that DaVinci growth to happen.”

“Mahindra has decided that they don't want to have conventional suspension anymore.”

“EBITDA for Q2 increased 28.7% year-on-year to INR2,616 million, translating into EBITDA margin of 17.2% on value-added revenue.”

“For H1 2027, EBITDA increased 14.1% year-on-year to INR5,085 million, with an EBITDA margin of 17.5% on value-added revenue.”

“Our profitability during the period was impacted by inflationary headwinds, including commodity costs arising from geopolitical environment, increase in the minimum wages in couple of states, weakening currency, and the premium freight, plus the cost associated with operating as a publicly listed company.”

“For some of these commodities, like steel, we do have an arrangement with our OEMs where we recover this money from the OEMs. There could be a time lag of a quarter or so.”

“So, with DaVinci's having that kind of a market impact, as it starts disrupting, the margins will improve. I cannot tell you what that exchange of margin will be over time”

“We remain debt-free and continue to maintain a net cash position.”

“Our cash conversion cycle stood at negative 22 days, reflecting disciplined working capital management and strong cash generation efficiency.”

“This enables us to fund our capital expenditure and growth requirements through internal accruals”

“We also made an important entry into the fast-growing three-wheeler segment, where we won suspension business with a leading Indo-Korean joint venture.”

“We supplied India's first locally produced semi-active CVSAe, marking a very important step in our localization journey”

“We also made a strategic entry into the CNG market through a cold end assembly program for a European passenger vehicle application.”

“So one is to invest behind the growth. That is one of the top priorities. Then we are also looking for any other growth opportunities, the way we can invest this money. And of course, dividend will also be one of the considerations as we move on.”

“time interest income benefit of approximately INR254 million net of tax, related to the sale of Motocare entity, which was recognized in H1 of previous year, and therefore created a higher base for comparison. Excluding this one-off item, the PAT would have been in line with the EBITDA growth.”

“At the same time, the external environment continues to present challenges, particularly from inflationary pressures, including commodity-related cost increases.”

“this quarter was impacted by the inflationary headwinds, which is mainly on account of the Middle East situation, where the prices of commodities had gone up, which included steel and non-steel items like lube oil, plastic, rubber, and all.”

“The second one is the U.S. tariffs. There is a lot of uncertainty around the U.S. tariffs having a negative or spooking effect on many OEMs”

“Specifically to our order book, right, some SOP launches or startup production launches got delayed or even canceled due to the war, the uncertainty, tariffs, et cetera, as well as freight cost increases, so making some of the business cases worse.”

“So Yes, in the end, it is third-party OEMs.”

“During the second quarter, our value-added revenue grew 32.2% year-on-year, supported by volume growth of 25.4%.”

“We secured content on three new vehicle platforms with a leading Indo-Chinese joint venture.”

“During the quarter, we started production for three-Door Thar suspension program.”

“We also secured two next-generation models with an existing leading Japanese passenger vehicle OEM and are further expanding our engagement with a Vietnamese OEM with the introduction of three new platforms.”

“During the quarter, we introduced a new hot end commercial vehicle exhaust program with a leading Indian commercial vehicle OEM for bus applications.”