Q3 2025 PPAP Automotive Ltd Earnings Call Transcript
Key Points
- PPAP Automotive Ltd (BOM:532934) reported a 13% year-on-year revenue growth to INR135.3 crore for Q3 FY 2025, indicating strong business performance.
- The company secured lifetime new orders worth INR192.8 crore in Q3, with a significant portion from the EV sector, showcasing its growing footprint in the electric vehicle market.
- The aftermarket business, operated under Elpis Automotive Parts, grew by 30% year-on-year in Q3, contributing 4% to total revenues, reflecting strong momentum.
- Meraki Precision Molds, the company's commercial toolroom business, contributed 5% to total revenue with significant growth, highlighting successful diversification beyond the automotive sector.
- PPAP Automotive Ltd (BOM:532934) has a strategic focus on enhancing value-added products, strengthening customer relationships, and expanding its presence in both domestic and international markets, positioning it for long-term growth.
- The company faces inflationary pressures, particularly rising labor costs, which could impact future profitability.
- PPAP Automotive Ltd (BOM:532934) reported a negative EBIT of INR1.2 crore in its lithium-ion battery business, indicating ongoing challenges in this segment.
- The commercial vehicle segment saw a 2.3% year-on-year decline in domestic sales, which could affect the company's growth in this area.
- Despite improvements, the company's gross margin has decreased from over 50% to around 43% in recent years, impacting overall profitability.
- The company has a high reliance on the automotive sector, with 84% of its revenue coming from this segment, posing a risk if the market faces downturns.
Good morning, ladies and gentlemen. Welcome to the Q3 FY 2025 earnings conference call of PPAP Automotive Limited.
(Operator Instruction)
This conference contains forward-looking statements about the company which are based on beliefs, opinions, and expectations of the company as in the date of this call.
These statements are another guarantees of future performance and involve the risk and uncertainties that are difficult to predict.
I now have the conference over to Mr. Abhishek Jain, Managing Director and CEO, PPAP Automotive Limited.
Thank you and over to you, sir.
Yes, thank you very much. Good morning, everyone.
I would like to extend a very warm welcome to all the participants joining us on this call.
Accompanying me today are Mr. [Beny Puri], our Head of Accounts, along with SGA, our investor relations advisor.
Mr. Sachin Jain, our CFO could not join this call due to health
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