Expected improvement in Q3 performance is based on new orders worth over Rs 900 crore during H1FY23 from Bajaj Auto, Hero MotoCorp and Tata Motors besides exports to European OEMs.
09 Nov 2022 | 9941 Views | By Shahkar Abidi
Endurance Technologies, a Tier 1 supplier of automotive components, reported a net profit (before minority interest) of Rs 131.5 crore in Q2FY23, a 1.4 percent decline from Rs 133.3 crore in Q2FY23. The company's consolidated revenue during Q2FY23 stood at Rs 2,369 crore which represents around 25 percent growth over ...
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Endurance Technologies, a Tier 1 supplier of automotive components, reported a net profit (before minority interest) of Rs 131.5 crore in Q2FY23, a 1.4 percent decline from Rs 133.3 crore in Q2FY23. The company's consolidated revenue during Q2FY23 stood at Rs 2,369 crore which represents around 25 percent growth over Q2FY22 figures of Rs 1895.8 crore.
Anurang Jain, Managing Director of Endurance Technologies said: “On a YOY basis, Indian two-wheeler sales volumes in Q2FY23 have grown by 7.4 percent. The sales numbers have crossed the 5.5 million vehicles mark for the first time in seven quarters. Our top line benefited from elevated metal prices, and higher volumes due to industry numbers and our capacity additions.” With raw material prices easing down, the margins are expected to get better in forthcoming quarters, says Jain.
Even as Endurance Technologies' Indian operations, which formed about 79 percent, remained strong during the reported period, the European and UK markets which brought the rest of the revenues were rather lukewarm.
EU and UK industry numbers grew only 0.4 percent on a weak base of 2.6 million new car registrations, reflecting a two percent drop compared to 3.6 million registrations in Q2FY20, which was the pre-pandemic level.
“Our European business turnover in Euro terms rose 25.9 percent YoY. Normalised for the impact of higher aluminium prices, our top line saw a YoY increase of 19.3 percent. The quarter saw further increase in energy prices in Europe, severely impacting our margins,” Jain said.
Jain said that the company's new orders in India aggregated to around Rs 700 crore during H1FY23. The new orders from its European business during the same period is pegged at about Euro 25 million, translating into another Rs 202 crore.
In terms of vehicle types, more than 60 percent of the company's revenues comes from two-wheelers, followed by about 30 percent and 10 percent from four-wheelers and three-wheelers respectively.