Highlights:

The company has sustained performance on the back of our balanced business mix, despite a challenging market environment. It has continued the trajectory for business wins in both Automotive and Industrial businesses.

The margins performance of the company was consistent and sustained in Q3CY2022.

The focus of the company remained on constant customer engagement remains. The company has launched REPXPERT - an Automotive Aftermarket Mobile Technical Training Van. This will cover distance of 8800 kms, 1100 garages, 1575 customers, 36 cities etc over 81 days on road. The target group would be repair garages, fleet workshops, multi brand garages and retail markets.

The aim of the company is to create pull for products through REPXPERT.

As per the company, the headwinds due to global market outlook and inflation would remain for some more quarters.

The sale of the company has increased 18% yoy and 0.4% qoq in Q3CY2022. EBIT margin improved to 15.7% up from 14.9% last year.

The company has witnessed challenges on free cash flow, which is down 33.5% in Q3 due o working capital going up.

The focus of the company is on consolidation of earlier launched products in automotive aftermarket segment.

The performance of the industrial segment was impacted due windmill equipment and raw material sector facing weak demand on account of challenges in the Europe.

The export remains a key focus area of the company. The product relocation program from the parent is progressing well.

The capex of the company increased to Rs 100.5 crore in Q3CY2022 from Rs 47.4 crore in Q3CY2021. The capex to sales ratio was higher at 6.2% in 9MCY22 from 3.4% in 9MCY21. As per the company, large part of capex is allocated for capacity expansion. The capex stands at Rs 400 crore for CY22.

The company remains cautiously optimistic on the back of weakening global outlook and uncertainties

The exports segment performed strongly in Q3CY22. The company has good order book for Q4CY22.

The company expects margin would depend on product mix. Cost discipline will continue.

Steel price and inflationary continues to be a concerns. The company is using indexation and negotiation for passing on higher raw material cost to customers.

The company remains focused on improving content per vehicle and new product launches.