Sandhar Technologies hosted a conference call on Feb 18, 2025. In the conference call, the company was represented by Mr. Jayant Davar : Co-Chairman and Managing Director and Mr. Yashpal Jain : CFO.

Key takeaways of the call

India’s FY25 GDP growth forecast has been revised downwards by RBI. Despite slowing growth, sandhar revenue grew 9% YoY in Q3 FY25.

The company expects growth momentum to continue, subject to geopolitical conditions. Management guided revenue of about Rs 4500 crore for FY26.

The company started commercial production of battery chargers.

All joint ventures (JVs) saw significant growth, with positive PAT. Together, the JVs reported a revenue of Rs 270 crore.

Europe market remains weak in Q3 FY25.

In Q3 FY25, 2-Wheelers contributed 60.9% to revenue, Passenger vehicles 15.6%, OHV 15.9%, CV 1.5% and others 6.1%.

In 9M FY25, 2-Wheelers contributed 61.7% to revenue, Passenger vehicles 16.4%, OHV 14.9%, CV 1.6% and others 5.4%.

In Q3 FY25, locking systems contributed 19% to total revenue, vision systems 5.5%, Cabins & Fabrication 15.1%, Sheet Metal 14.1%, ADC – Overseas 11%, ADC – Domestic 12.8%, Assemblies 11.4% and Others 11.1%.

In 9M FY25, locking systems contributed 18.4% to total revenue, vision systems 5.6%, Cabins & Fabrication 14.2%, Sheet Metal 17%, ADC – Overseas 11.8%, ADC – Domestic 13.4%, Assemblies 10.7% and Others 8.9%.

As part of its internal restructuring and to streamline the operations of its Zinc Die Casting Business, the Board has approved the sale of two units to its wholly owned subsidiary, Sandhar Ascast. These units are Unit-IV at IMT Manesar, Gurgaon, Haryana, and Unit-II at Attibele, Anekal Taluk, Bangalore, Karnataka. The sale will be conducted on a going concern basis.

The company is focused on diversification of product portfolio and deleveraging balance sheet.

The company expects to benefit from increasing wallet share with customers and rising content per vehicle.

The company expects adoption of smart locks to accelerate in FY26, which auger well for the company as smart locks costs 8-10 times more compared to mechanical locks.

In terms of Geographical Breakup, standalone contributed 76% to total revenue in Q3 FY25, Indian Subsidiaries 13% and Overseas Subsidiaries 11%.

Standalone contributed 75.1% to total revenue in 9M FY25, Indian Subsidiaries 13.1% and Overseas Subsidiaries 11.8%.

Capex for 9M FY25 was approximately Rs 170 crore.

Net debt stood at about Rs 670 crore as on 31 Dec 2024.