Triton Valves — Q2 FY26 earnings call

So today I think our order book is higher than our theoretical capacity right now, right? So I can assure you that, you know, the traction, whatever we were expecting in Q2 has well and truly got transferred to Q3, right? So we are holding a very significant order book to give you an example, I would say as of today, I think our order book is more than 700 metric tons in our metals vertical.

Clarifies the quantitative order book for a specific segment, indicating strong demand and visibility for Q3.

Asked by Digant Bamb

We've been working very hard behind the scenes to get into some of the global accounts for TPMS valves... Robert Bosch Germany program has already gone into serial production... 2 new additional orders during this quarter Q3 Hopefully we will execute both the orders in Q3 itself, right? It's not a very, very large order. I would say about one and a half crores in value for the quarter. ... In terms of margins I can say typically, if you look at the TPMS product EV product, it'll be almost an order of magnitude higher than the older products, right? So on average I would say we should see a, margin, let's say expansion of anywhere between 500 to 1000 basis on the new products.

Highlights success in securing new, higher-margin orders for advanced products like TPMS and EV components, indicating future margin expansion.

Asked by Digant Bamb

So what we plan to do is to reduce our floating working capital to great extent and possibly take allocate two to three crores for future tech the metal business where it requires where we can get price advantage. So this will be like a like just available with us, we don't intend spending it, we're always available on time.

Explains the strategic use of warrant conversion funds for working capital reduction and future tech investments, rather than immediate debt repayment or dividends.

Asked by Digant Bamb

When I say thousand doesn't mean exactly thousand, right? But, yeah, I mean look it all depends on how we, how we fund ourselves for that kind of growth and also I think what we're also realizing as a company is that we need to drive profitable growth also right. ... 15 % year on year definitely you can see even in even in current year, right? Q1 was not very good for the auto industry, we are still growing, I would say 18 % plus, right? So once we, you know, get we fire up Climate control, we fire up metal vertical Right, so 15% is not the number we are aiming for that for sure.

Addresses analyst's concern about the target's ambition, clarifying it's a minimum and the focus is on profitable growth, with current growth rates already higher.

Asked by Digant Bamb

The good part for us is that, you know, some of the quality will actually benefit from, ok? So let me just explain to you how we have structured future take and you know the other two businesses or the component businesses. ... So ultimately I'll put it like this in the long run it will be EBITDA created to the group, right? We will be sometimes losing here, sometimes we'll be getting somewhere else and there will be certain situations where we'll be getting in both places, right? So the way we are structured it is that either commodity and component businesses should gain or if one loses the other should balance it out.

Details the company's strategic structure to hedge against commodity price volatility, where gains in one vertical can offset losses in another, ensuring group-level EBITDA stability.

Asked by Shanki Banshal

Not directly monetizing in terms of licensing it or something like that. But, yeah, so the pressure relief valve and battery pack Yeah that we it's a precious patent that we hold today and so far I would say that, you know, the fact that, you know, it's performing in the field is really getting traction for us. ... The good news I can tell you is that because it's patented because its performing and more and more customers are coming to us. We have recently we, started working with somebody we might believe will also scale up very fast in the battery industry. It's Reliance. I'm very happy to tell you all today that our parts have been qualified now by Reliance New energy.

Reveals that the patented EV component is gaining traction with major players like Reliance New Energy, validating the product and its market potential without immediate licensing.

Asked by Digant Bamb

We believe that it will be roughly 400 crores each coming from the automotive business and metals vertical, 400 each and the remaining 200 coming from climate control, right? Because climate control has huge potential like I said, last year, India imported 650 cores worth of service valves and the kind of components that we make. ... precision engineering for sure will be, will continue to be our focus because you know that is going to give us value addition right, The commodity business, it's primarily meant to kind of, you know, be a internal hedge against the, you know, commodity movement, but at the same time, we are finding very interesting opportunities for, you know, like I said, high value alloys, you know, special materials and material technology also is something that in India is woefully lacking.

Provides a clear breakdown of the expected revenue contribution from each vertical towards the long-term target, emphasizing the role of precision engineering and high-value alloys.

Asked by Shanki Bansal