Q1 2027 RACL Geartech Ltd Earnings Call Transcript
Key Points
- Consolidated revenue grew 22% year-over-year to INR132.6 crores, with operating revenue up 31.5%.
- PBT surged nearly 50% year-over-year on a consolidated basis, reaching INR16.82 crores.
- KTM has bounced back strongly, with volumes returning to pre-COVID levels and a positive outlook for model year 2027.
- The BMW project is on track, with pilot supplies already shipping and final approval expected on October 24, 2026.
- The new electric-based heat treatment plant is progressing as planned, with trial production targeted for January 2027, which will reduce LPG dependency and carbon emissions.
- The company faces ongoing challenges from geopolitical conflicts and a severe energy crisis in India.
- The new heat treatment plant is a significant capital expenditure (INR40 crores of the INR77 crores total) and carries execution risk until fully commissioned.
- The company is cautious about scaling up with domestic multi-supplier customers like Royal Enfield, limiting immediate volume growth potential.
- The ZF project is still ramping up, with utilization at only 50-60% of installed capacity, and peak revenue is now expected by 2030.
- The effective tax rate for the quarter was high at 47% due to deferred tax liabilities, though the blended rate for the year is expected to be 25.62%.
Good afternoon, ladies and gentlemen. I am Neha Bahal, Company Secretary and Compliance Officer of RACL Geartech Limited. On behalf of the company, I extend a warm welcome to all participants joining us for the earnings conference call to discuss the financial performance of the company for the first-quarter of the financial year '26-'27. I will be moderating today's session. Before we commence, I would like to draw your attention to a few important points.
During the course of this call, the management may make certain forward-looking statements relating to the company's future performance, business prospects, growth opportunities and outlook. These statements are based on current assumptions and expectations and are subject to various risks and uncertainties that may cause actual results to differ materially from those expressed or implied. (Operator Instructions)
Please note that this conference call is being recorded. We are pleased to have with us today the management team of RACL Geartech Limited,
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