Precision Camshafts Ltd (NSE:PRECAM)
₹ 143.29 -1.19 (-0.82%) Market Cap: 13.61 Bil Enterprise Value: 9.82 Bil PE Ratio: 26.54 PB Ratio: 1.63 GF Score: 75/100

Q2 2025 Precision Camshafts Ltd Earnings Call Transcript

Nov 25, 2024 / 06:45AM GMT
Release Date Price: ₹298.25 (+0.30%)

Key Points

Positve
  • Precision Camshafts Ltd (BOM:539636) achieved a 6.33% increase in revenue quarter on quarter, reaching INR181 crores.
  • The company's EBITDA margin was strong at 20.5%, with a PAT margin of 10.1% on a stand-alone basis.
  • Subsidiary MEMCO showed improvement with a total income of INR13.04 crores and a net profit of INR0.45 crores.
  • The company has a robust order book for the Camshaft business extending up to 2030, indicating long-term business security.
  • Precision Camshafts Ltd is actively expanding its solar capacity, aiming to double it from 15 megawatts to 30 megawatts, which could reduce operational costs.
Negative
  • The consolidated total income for Q2 decreased by 9.2% to INR238.8 crores, indicating challenges in overall business performance.
  • EMOSS, the e-mobility subsidiary in the Netherlands, experienced a significant revenue dip due to the recessionary environment in Europe.
  • The geopolitical instability in Europe, including the Russia-Ukraine conflict, has led to a shortage of parts and increased vehicle costs.
  • The demand for e-mobility retrofit solutions in India is slower than expected, impacting growth projections.
  • The company's German subsidiary, MFT, is facing ongoing profitability challenges, with no immediate resolution in sight.
Operator

Ladies and gentlemen, good day, and welcome to the Precision Camshafts Limited earnings conference call for Q2 and FY25. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Karan Shah, Whole Time Director, Business Development. Thank you, and over to you, sir.

Karan Shah
Precision Camshafts Ltd - Whole-Time Director - Business Development

Good afternoon, ladies and gentlemen. I'd like to thank you all for being a part of this Precision Camshafts Q2 FY25 earnings conference call. In case of any detailed questions related to finance, please e-mail your question at [email protected], and we should provide you answer in a reasonable time.

We have submitted the investors presentation for Q2 FY25 to stock exchanges on November 24, and the same is also available on our website. Investors are requested to refer to the same.

I'm pleased to announce that Precision Camshafts Limited, on a stand-alone basis, has achieved a growth in top line as well as bottom line in this quarter despite the

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