Stockrabit · Analysts
Questions across 2 calls

Sunil Bohra

Firm not listed in source transcripts

UNO Minda Limited

UNO Minda Limited CC-Mar25.pdf · 2025-05-21
Okay. Thanks. So in terms of the first question, on UK India FDA & US-India FDA bilateral discussion, what happened as I said, we remain cautiously optimistic. Hopefully something good will come out based on whatever we are listening or hearing out from the government and the other sources. In terms of UK, India, we all know that there are multiple factors wherein the path has been laid out by the government for next 10 years as to how the rates eventually will come down. So as of now, we don't have any significant exposure to UK, but in the past we have been in touch with some of the customers, hopefully with this some doors might open, but it's too early to comment on that in terms of opportunities. But our point was more in terms of the sector per se because if the rates and all come down, it will be hopefully positive for the entire sector from the automotive components perspective. The second question is on e-axle, value and SOP. So SOP as I have mentioned is in the middle of next financial year and in terms of value it's very difficult to give because while we do have a value for first kit, which we can't share because of price-sensitive inflation, a lot is also dependent in terms of the volume uptick which this market is in terms of phase where a lot of moving parts and it's a high growth segment. So as of now, while we do have some value indication from our customers, we will not like to speculate in terms of what the values are going to be in future. So the way we have done, announced this CAPEX is also that while we construct this infrastructure, the land building, utilities, etc., the plant and machinery we will do in a phased manner as we get the increase in the volume uptick. And whether it will consolidate on line-by-line or a share of profit question on this, yes, it will be consolidated line-by-line because it is going to be eventually 70:30 JV, majority being Uno Minda Limited. So it will be consolidated line-by-line from Uno Minda perspective. Then your next question was top line growth versus the EBITDA margin and drop of 90 basis points compared to last year. As we said last year, yes, there was some price increase, but in this quarter in terms of startup cost you mentioned which will be sustained, there is roughly around Rs.19- 20 crores of additional manpower cost which we have incurred during this quarter because of number of increase in people during the quarter. So that we believe, obviously, will be sort of a sustainable cost plus there are some other administrative expenses around similar numbers.
Thank you.
UNO Minda Limited CC-Sep24.pdf · 2024-11-12
Anything else?
Thanks, so in terms of starting with margin performance, so as we normally say, in particular quarter-to-quarter, our margins may not be the right thing to look at, given our business volatility. So, if we see, definitely, Q1 to Q2 seems a bit improvement, but if you see last year to this year, the improvement is roughly around 30 basis points. This is despite some of the businesses are in the expansion phase. Some of the plants, which are still into the SOP phase where the costs are lower, and we continue to have this phase for a good medium term. So, as you see, year -on-year, the margin came roughly around 30 basis points, and it is in line with the guidance, which we have provided at the beginning of the year. That's number one. Number two, in terms of capacity utilization for switches and casting you asked about, so the switches business, capacity utilization stands roughly at around 80% to 90%, and the casting business is at around 90% , 95%, broadly. And the third question was quarter -to-quarter EV 2- wheeler revenues and profitability, yes, there is significant growth in EV 2 -wheeler revenues as we have been expecting and guiding as well. In terms of profitability, it still is below our average profitability level that we get let the business, gets into a stable phase of us, still into a lot of expansion phase with the capex still being incurred and depreciation, etcetera, which will be awarded on the full capacity, which are not yet ful ly utilized. So, in terms of profitability, there is still scope for improvement and so is the business.