Q3 2025 Sharda Motor Industries Ltd Earnings Call Transcript
Key Points
- Sharda Motor Industries Ltd (BOM:535602) reported a 5% growth in gross profit for Q3 FY'25, outperforming the passenger vehicle industry's growth of 3%.
- The company secured a new order for suspension controllers with an annual business value of USD 4 million and a lifetime value of USD 22 million, expected to start in Q3 FY'26.
- Sharda Motor Industries Ltd maintains a strong liquidity position with over INR 863 crore in cash, cash equivalents, and investments as of December 31, 2024.
- The company is optimistic about future growth driven by new product launches, export market expansion, and upcoming emission norms.
- The lightweighting vertical is gaining traction, with a new plant in Pune expected to significantly increase production capacity.
- Revenue growth for the nine months of FY'25 mirrored industry growth, indicating challenges in outperforming the market.
- The commercial vehicle segment experienced subdued production growth due to slow financing approvals and government fund releases.
- The company faces high customer and product concentration risks, which it is working to mitigate through diversification strategies.
- There is uncertainty regarding the implementation timeline of new emission norms, which could impact future revenue projections.
- The export market currently contributes only 1-2% to the company's revenue, highlighting the need for significant growth in this area.
Ladies and gentlemen, good day and welcome to the Q3 FY25 Shadda Motor Industries Limited conference call hosted by Equirus Securities. This conference may contain forward-looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions once the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mihir Vora from Equity Securities. Thank you and over to you, sir.
Thank you.
Hi, good afternoon, everyone on behalf of Equity Securities. I welcome you all to the Q3 FY'25 post conference call of
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