Q1 2027 Talbros Automotive Components Ltd Earnings Call Transcript
Key Points
- Talbros Automotive Components Ltd (BOM:505160) achieved its highest-ever quarterly revenue of INR 242 crores in Q1 FY27, a 15% year-on-year growth, with EBITDA at INR 43 crores (17.6% margin) and PAT up 35%.
- The gasket and heat shield division, the largest contributor (52% of revenue), grew 21% YoY to INR 164 crores, with EBITDA up 32%, driven by increased heat shield exposure with Hyundai/Kia and a new data center revenue stream (estimated INR 30-40 crores annually).
- The company is expanding into new growth verticals, including data center components (supplying gaskets for generators via Cummins and Kirloskar) and EV components, with EV sales rising to INR 12.5 crores in Q1 FY27 from INR 9 crores a year ago.
- Strong order book and new business wins, including new orders from Kia, Cummins, and Stellantis (chassis division), plus a significant INR 500 crore order for the forging division over 5 years, support a FY27 revenue growth target of 18-20%.
- The company maintains a leadership position with ~50% market share in the domestic gasket market and is targeting exports to reach 35% of revenue by FY28, with a diversified customer base including JLR, BMW, and Cummins America.
- Joint ventures are performing well, with Merele Chassis Systems revenue up 43% YoY to INR 105 crores and Marvo revenue up 31% to INR 40 crores, while the Lohan Talbros JV (recovered carbon black) is progressing as a long-term growth driver.
- EBITDA margins in Q1 FY27 were temporarily pressured by elevated commodity prices (steel and aluminum) and other inflationary costs, such as labor increases, with recovery expected only in coming quarters.
- The forging division showed weak growth of only 4% YoY (INR 78 crores) due to a slowdown in European car markets, reduced schedules from customers like BMW and GKN, and manpower availability issues, though management expects improvement.
- The company lost a potential INR 30-40 crore per annum business from Marelli due to tariff issues and their subsequent backing out, which contributed to lower forging guidance for FY27 (INR 340 crores vs. earlier expectations of INR 400 crores).
- The European car market remains sluggish due to inflation and competition from Chinese automakers, impacting export demand for the forging division, though this is seen as an opportunity for future orders.
- The Narelli JV (GXA) is still in the middle of court proceedings, with no clear picture on the deal until end of September, creating uncertainty around this potential business.
- The company faces ongoing operational challenges, including West Asia crisis impacts, power shortages, higher wage costs, and elevated LPG prices, which have moderated but not fully resolved.
Ladies and Gentlemen, good day and welcome to the Talbros Automotive Components Limited Q1 FY27 Earnings Conference Call. (Operator Instructions) I now hand the conference over to Mr. Anuj Talwar, Managing Director. Thank you, and over to you, sir.
Thank you.
Good afternoon, everybody. A very warm welcome to our 200 Automotive Components quarter one's earning for 2017.
In the call today, I'm joined by Mr. Navin Juneja, our Director and Group CFO, along with the IR firm SGA. The results and the investor transition have been uploaded on the stock exchange and the company website. Before I take you through our performance, I'd like to spend a moment on the broader industry landscape.
The Indian automotive industry. Delivered a healthy performance during the first quarter of 2017, supported by continued demand across key vehicle categories, improving consumer sentiment, sustained infrastructure spending, and improved supply chain stability. Structured
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
