Q1 2027 Shivalik Bimetal Controls Ltd Earnings Call Transcript
Key Points
- Consolidated revenue grew 33.4% YoY to INR 182.2 crore, with EBITDA up 35.2% and PAT up 44.9%, marking a strong start to FY27.
- Margin improvement was driven by a strategic shift from low-value strips to high-precision components, which is sustainable and less vulnerable to competition.
- The Americas showed early recovery in shunts with 30% YoY growth, and Europe grew strongly, indicating improving export momentum.
- Received consent to operate for Phase 1 of the Pune facility, enabling scalable production of cell connecting systems and supporting forward integration into higher-value assemblies.
- Management expects FY27 revenue growth of 20-30%, with new busbar and cell connecting system business projected to contribute INR 300-400 crore in three years, requiring only INR 20-25 crore incremental capex.
- Customer concentration has reduced significantly; even with the revival of a major US customer, exposure is expected to remain below 18%, down from 35-40% historically.
- Asia was weaker during the quarter, and management noted it remains an area needing focus to rebuild momentum.
- Approximately half of the reported revenue growth in the quarter was attributed to higher silver prices, which is not sustainable and could reverse if commodity prices decline.
- The thermostatic bimetal segment grew only 7.4% and has been struggling across regions, though early signs of domestic uptake are emerging.
- The Pune facility is only in Phase 1, with full operational capacity not expected until October, limiting near-term revenue contribution from new assembly products.
- Capacity utilization is low in the bimetal segment at 40-45%, and increasing capacity is highly capital-intensive and time-consuming, posing a constraint on scaling.
- The company is still in early talks for potential technology partnerships or acquisitions, with no concrete deals announced, leaving future growth beyond current verticals uncertain.
Q1 and FY '27 earnings webinar produced by Elovis. So I'm Shankini. I'm the director of investor relations at Dickinson, and I'll be moderating our call today.
So joining us from the Shivalik management team is Mr. Sumair Ghuman. He's the whole-time director of the company.
Before we get into his opening remarks, kindly note that this conference is being recorded and that some statements in this call may be forward-looking based on current expectations and subject to risks that could cause results to differ materially.
You can also download the company's investor deck and press release from the links on the company website or on the NSC.
Great. So I'll hand over to you, Sumer, now to begin with your opening remarks.
Thanks, Shankini.
Good afternoon, everyone, and thank you for joining us today.
Q1 FY '27 is a strong start to the year and gives us further evidence
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