Vimal Gupta Group CFO of the company addressed the call. 

Highlights of the call  

Alicon Castalloy offers end-to-end solutions spanning the entire spectrum of aluminum casting needs across multiple user industries 

Enkei Corporation is a l eading Japanese motor cycle and passenger car wheel manufacturer with 70+ years of experience. 

Alicon Castalloy is largest Foundry in India offering frugal engineering solutions with 50+ years of track record. 

In Q3, sales stood at Rs 266 crore, up 4%. Domestic sales grew 2% and export (incl. overseas business) grew 9%. 

Gross profit margins were stable at 49%. 

Q3 PAT grew 8% to Rs 11 crore.  

For the quarter auto accounted for 91% of the sales. Rest came from non auto business.  

For the quarter domestic sales accounted for 79% of the sales. Rest 21% came from exports (incl. overseas) business.  

For the nine months sales grew 21% to Rs 868 crore. Domestic sales stood at Rs 706 crore, up 20%. Export grew 27%. 

EBITDA Margins were higher by 122 bps to 12.4%

PAT margins were up by 67 bps to 4.2%. PAT grew 43% to Rs 37.1 crore.  

Kerala flood and sluggish festive season sales impacted sales. 

EBITDA growth was driven by improving product mix as well as the increasing value proposition that it provides to customers as an end-to-end solution provider. 

The company is now better positioned than before to counter heightened volatility in the macro environment given the deeper technology imprint in its business model and focus on transformative solutions.  

The company is not reliant on a single customer. None of the customers accounts for more than 15% of turnover. 

Its initiatives to diversify offerings across multiple user industries provide it with more levers for growth.  

The company is pursuing opportunities from the emerging e-mobility focus in order to be at the forefront of industry trends as it strives to firmly establish Alicon Castalloy as the globally preferred supplier for alloy casting solutions" 

In FY16, Alicon unveiled its vision G5 2021-22, which spells out the Company's ambition to be among the Top 5 global foundries by FY2021-22. It still stands by the vision. Accordingly, revenues are projected to increase to Rs 2000 crore+ from Rs 1000 crore + in FY 2018 with majority coming from domestic business. 24% of business will come from the developments and initiatives it has taken in last 2 years.  

It operates one of the largest aluminium foundries in India and has developed a robust and innovative product pipeline, spanning 16 segments. 

Non auto segment continue to show good momentum. It has developed products for Defence, healthcare and Power which are doing well. 

As demand improves, the management hopes to significantly outperform the industry growth. 

It has healthy pipeline of orders. 

Inquires have started picking up from second week of January 2019. The management is hopeful of good FY 2020. 

Currently 55% comes from 2-wheeler, 22% from passenger vehicles and 22% from LCV and CV. 

The company does not expect 2 wheelers to do well. It expects not more than 8% growth every year in 2 wheelers. 

Total capacity utilization is between 85-90%. Capacity generation is a continuous process. Capex will be Rs 60-65 crore in the current year. Capex for FY 2020 is Rs 100 crore and Rs 125 crore in FY 2021.

 To achieve Vision 2021-22 it will have to do capex of Rs 225-250 crore next year.