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.

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

It serves diversified marquee customer base across sectors such as automobiles, infrastructure, aerospace, energy, agriculture, defence and healthcare.

The management was pleased with the results.

In Q4 total Income increased 7% to Rs 317.41 crore. PAT grew 24% to Rs 15.89 crore.

In FY 2019 total Income increased 17% to Rs 1192.05 crore. PAT grew 37% to Rs 38.68 crore.

80% of sales were to the doesmtic market and the rest were exports plus sales from subsidiaries.

Sentiments were impacted in H2 in rural segments.

Moderate growth has led to inventory buildup.

In FY 2019 exports grew 25% and domestic sales grew 14% with improved client metrics.

Enhanced product mix drove improvement in EBITDA margins which are at all-time high.

This robust performance was achieved despite challenging demand conditions and a cyclical downtrend in the domestic auto industry.

Its efforts to diversify the base of customers and industries served have yielded results as export revenues grew 25% in FY19.

Non-auto revenues registered healthy growth with improved client metrics.

The company has made progress on strategic plans and initiatives. In the Auto segment, it has enhanced the proportion of innovation based products in the product mix enabling it to report improved margins.

In the non-auto segment, offerings to sectors like Defense, Aeronautical, Healthcare and Power are gaining traction.

The company evaluates and expands product suite on an ongoing basis to align offerings with changing technologies and emerging trends.

The management is confident of sustaining growth trajectory by leveraging comprehensive product portfolio, diverse customer base, depth of innovation & R&Das well as global operations.

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

It has healthy pipeline of orders.

The company has expanded bouquet of products in to serve clients in the global and domestic markets.

Due to subdued environment it has postponed its greenfield expansion in Pune which was to take place in FY 20.

In FY 2019 the company strengthened its client base and added new clients across product basket.

Indian Auto industry is inching towards B6 and the company has already supplied B 6 products in the developing markets.

In Q4 of 2020 it anticipates significant shift in volumes from BS 4 to BS 6.

The company has already designed several BS 6 products which are in place and the company is reaching out to clients for the same.

In FY 2019, it introduced light products (reduced weight) in non auto segment.

Indian market is steadily witnessing pick up in non auto business.

The company is on track to increase contribution from non auto segment to 12% (from current 11%) by 2022 on growing sales.

Cash and cash equivalent stood at Rs 12.4 crore as on FY 2019. Net debt stood at Rs 268.2 crore. Debt to equity ratio stood at 0.9.

It has healthy working capital cycle.

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+ with majority coming from domestic business.