Conference Call with Endurance Technologies Management and Analysts on Q1FY24 Performance and Outlook. Listen to the full earnings transcript.
Auto Parts & Equipment company Endurance Technologies announced Q1FY24 results: Consolidated total income including other income increased by 16.4% on a YoY basis. 75.1% of consolidated total income including other Income came from Indian operations (including Maxwell) and the balance came from European operations. Standalone total income including other income for Q1FY24 grew by 13.3% YoY. Consolidated EBITDA margin was 13.7% vs. 11.5% in Q1FY23. Consolidated PAT at Rs 1,635 million was 58.1% higher than Q1FY23. Aftermarket sales from Indian operations stood at Rs 922 million vs. Rs 963 million in Q1FY23. Consolidated Basic and Diluted EPS for Q1FY24 stood at Rs 11.62 per share (not annualised) compared to Rs 7.35 (not annualised) in Q1FY23. Commenting on the Company’s performance and recent developments, Anurang Jain, Managing Director of the Company said, “Two-wheeler sales volumes for Indian OEMs have recorded a marginal YoY growth of 1.2% in Q1FY24, based on 9.2% growth in scooter volumes and 1.6% de-growth in motorcycle volumes. Growth in three-wheeler volumes stood at 25.5%, while passenger cars grew 7.2%. Endurance standalone revenues for Q1FY24 rose 13.3% compared to Q1FY23. In Europe, average energy prices softened compared to the preceding quarter but remained significantly higher than the long-term average before 2021. New car registration numbers for the EU grew 17.9% YoY. While most countries in the EU reported double-digit growth, the growth was not even across major OEMs. Certain key customers of our Company reported low/mid-single-digit growth. Against this backdrop, our Q1 sales in Europe in Euro terms grew 12.6% over Q1FY23. The Indian two-wheeler market is at an interesting juncture. In the scooter market, EVs are expected to soon take a lead over ICE, despite the recent setback to volumes post the reduction in government subsidies. All traditional products of our company, barring clutches, are required in EVs. Moreover, Battery Management System (BMS), where Maxwell is a key player, forms a key part of the overall electric vehicle cost. In the last month, we increased our shareholding in Maxwell from 51% to 56%, and the same will be increased to 100% in the next 4 years. Leading 2W OEMs have taken cognizance of the growing aspirations and spending ability of riding enthusiasts, and have launched new premium motorcycle models. We have won orders to supply key components to certain vehicles in this category. In the country, there are a large number of households that have experienced some economic progress and now aspire to own a vehicle. This section of our population also recognises that quick personal mobility assists them in their work and productivity. This bodes well for two-wheelers at lower price points and for the aftermarket. Endurance will continue to play a key role in these markets as well.” Result PDF