- The company had a successful listing on September 11th.
- They are disclosing their first-quarter figures, which show growth in both Indian and global economies.
- Console-level revenue increased by about 38%.
- EBITDA and adjusted EBITDA also showed growth.
- The Indian operations grew with a 37% increase in revenue, with export revenue growing faster than domestic.
- Segment-wise, aluminum high-pressure die casting grew by 32%, while metering, control, and protection devices grew by 47%.
- Electrical automation grew by 10%, and solar string inverters by 3%.
- Lumel SA in Poland saw significant growth, with EBITDA almost doubling.
- Lumel Alucast's top line grew by 30%, but ESOP and contingency liabilities impacted profitability.
- The company has medium to long-term plans for growth, including organic and inorganic expansion, capacity expansion, and cost optimization.
- They are also investing in employee development.
- They are taking advantage of government schemes, including MSIP and Maharashtra electronics policy.
- The company is focusing on the Make in India initiative, particularly in the solar string inverter segment.
- They are expanding their product range and capacity to meet growing demand.
- The company's Marg software helps monitor and improve energy efficiency in factories.
- Automation is a growing trend, and the company is well-positioned to benefit from it.
- R&D spend has been 2.5% to 3% of total revenues over the last 3 years.
- Anticipates similar R&D spending in the future to maintain a focus on innovation.
- Collaboration with IIT Jodhpur focuses on green energy research and development.
- Funded by philanthropic efforts of Mr. Narendra Goliya.
- While not a monopoly, the company has a strong position in certain product segments.
- Notable segments include current transformers, analog panel meters, and power quality analyzers.
- Strongest market presence in Western India.
- South and North regions are competitive, while the East is relatively weaker for electrical companies.
- Analog panel meters continue to have demand due to their simplicity and reliability.
- Digital meters are growing but not expected to phase out analog meters entirely.
- European electrical business profitability is strong.
- Efforts are ongoing to improve profitability in the aluminum die casting segment.
- Capacity utilization for aluminum die casting is around 60%, with plans to expand.
- Electronic business in Poland is at 50% utilization with room for growth.
- Export-oriented strategy with a goal of 50-50 export vs. domestic market.
- Exploring inorganic opportunities in both aluminum die casting and electronic segments.
- Specifics are being worked on, and updates will be provided when available.
- Expect growth to be balanced between India and Lumel businesses.
- Projections for the next two to three years suggest similar growth rates in both segments.
- The new capacity being added is primarily for the India location, with 50% of production for export and 50% for domestic markets.
- The 18% EBITDA margin mentioned is for Alucast, specifically the adjusted EBITDA margin.
\- Over the next one to two quarters, Alucast is expected to achieve margins of 13% to 15%.
- The expansion in margins for Alucast is expected in the coming years, driven by factors such as addressing energy cost increases through price adjustments, improving product mix, resolving challenges in new automotive projects, and managing inflation and employee costs in Europe.
- The margin improvement efforts apply to both the aluminum die casting and electrical business segments.
- While challenges exist, management is confident that they will return to previous EBITDA levels in the future.
