NDR Auto Components hosted a conference call on Feb 12, 2025. In the conference call, company was represented by: Pranav Relan- Whole Time Director, Mr. Vikram Krishan Rathi – Vice President Finance, and Mr. Rakesh Rustagi – GM – Finance & Accounts.

Key takeaways of the call

The company continued to witness healthy demand traction across OEMs.

In Q3 FY25, the company witnessed improvement in EBITDA margin supported by increasing proportion of premium content.

Sales of seating solutions to KIA have commenced in December 2024. Sunshade sales is expected to commence in current quarter.

The company has approved setting up of a project of seat insert fabric for four wheelers. For this purpose, the Company has entered into a memorandum of understanding (MoU) with Toyota Tsusho India (TTIPL) and Toyotsu Vehitecs (TVC) and the Company will be obtaining technical assistance from TTIPL. The said project will be set up at Gurgaon for an investment of Rs 21.89 crores in the next two years, through a wholly owned subsidiary, which will be incorporated in the next two months. Commercial production is expected to commence in July 2026. Management anticipates Revenue of Rs 100 crore By FY28-29.

The company continues its efforts to expand both its portfolio with innovative and differentiated offerings and its OEM partnerships.

The company expects to add approximately Rs 250 crore to the topline in FY26.

The current order book of the company is between Rs 500-550 crore and is expected to be executed over the next 2 years.

In line with the overall strategy, operating margins and return ratios continue to expand driven by both efficiencies as well as an increasing proportion of premium content in its portfolio.

Adequate land availability allows for low cost towards brownfield capacity expansion.

The company caters to 30% of Maruti’s requirements. Over time, the company expects to reduce its reliability on Maruti by increasing its client base.

Management expects EBITDA margin to improve gradually to 12% over the next two years.

The company is focusing more towards premium products. It is expanding offerings beyond Seats, Frame and Trims.

Seats presently comprise 2 -3% of the OEM’s costs. Advancements in automobile technology, increasing requirements and faster speeds can bump this number up.