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    Ndr Auto Components Limited

    NDRAUTO
    Automobile and Auto Components·9 May 2025
    Management Summary

    NDR Auto Components reported robust Q4 and full-year FY25 results, driven by strong growth in income and profitability, alongside healthy return ratios. The company made significant strategic moves, including a new JV with Hayashi Telempu for Ambient Lighting and collaborations for seat insert fabric, securing new orders. While facing some short-term product mix challenges and increased employee costs, management outlined an ambitious ₹3,000 crore revenue target by FY30, supported by organic growth and M&A, and maintained a focus on operational efficiencies.

    Highlights

    5

    • Q4 FY25 Total Income of ₹193.21 crore, up 9.17% YoY.

    • Q4 FY25 EBITDA of ₹21.86 crore, up 25.80% YoY, with EBITDA margins at 11.31%.

    • Q4 FY25 PAT of ₹16.45 crore, higher by 44.11% YoY.

    • FY25 Total Income of ₹717.10 crore, up 18.5% YoY, with PAT of ₹53.25 crore, up 37.57% YoY.

    • Strong FY25 return ratios: ROE at 25.78% and ROCE at 32.29%.

    Concerns

    3

    • Kia Syros artificial leather sales were lower than expected, impacting Q4 revenue contribution by approximately ₹20 crore.

    • Employee costs jumped from ₹5 crore to ₹6.5 crore QoQ due to hiring for growth opportunities.

    • Analyst raised concerns about tax notices/demands/search operations, though management expressed confidence in challenging them legally.

    What Changed1

    vs Q1 FY26

    Risks discussed6 → 2 (-4)
    Key financials

    Metrics

    10

    Periods

    2

    Q4 FY25

    4
    • Total Income
      ₹193.21 Cr
      YoY+9.2%
    • EBITDA
      ₹21.86 Cr
      YoY+25.8%
    • EBITDA Margin
      11.3%
    • PAT
      ₹16.45 Cr
      YoY+44.1%

    FY25

    6
    • Total Income
      ₹717.1 Cr
      YoY+18.5%
    • EBITDA
      ₹77.65 Cr
      YoY+29.8%
    • EBITDA Margin
      10.8%
    • PAT
      ₹53.25 Cr
      YoY+37.6%
    • ROE
      25.8%

    Order Book

    high confidence

    Total Value

    ₹ 1,150 crores

    as of 2025-03-31

    range

    Inflow this qtr

    ₹ 525 crores

    "The company has an order book of Rs. 1,100 to Rs. 1,200 crore from its organic business, with Rs. 500-550 crore added this quarter, which is expected to contribute to the Rs. 2,000 crore organic revenue target within 5 years."

    Source:
    Q&A

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    ₹20 crores

    Dividend

    ₹2.75/share (interim)

    Payout ratio 12.5%

    M&A

    Hayashi Telempu

    joint venture · announced · Consideration ₹NaN (mixed)

    Liquidity

    Cash ₹80 crores

    The company is debt-free and has sufficient cash for organic growth.

    Guidance & targets

    8
    CategoryTargetPriority
    Revenue
    Total Income
    ₹3,000 crores
    		Medium
    Revenue
    Hayashi JV Revenue
    ₹300 crores
    		Medium
    Revenue
    Bharat Seats Revenue
    ₹3,000 crores
    		Medium
    Profitability
    EBITDA Margin
    10%-12%
    		High
    Profitability
    PAT Margin
    Improve
    		Low
    Profitability
    Bharat Seats Operating Margin
    6%-7%
    		High
    Capex
    Annual Capex
    ₹20 crores
    		High
    Shareholder Returns
    Payout Ratio
    10%-15%
    		High

    Kia Syros artificial leather sales ramp-up

    next quarter
    CurrentLower than expected, impacting Q4 revenue
    TargetSales picking up, product mix normalizing

    Why it matters

    Impacts revenue realization per vehicle and overall revenue growth, crucial for new model contribution.

    Artificial leather didn't sell as much as the fabric, so artificial leather, the content is a lot more. So that is why the number Rs. 20 crore didn't come into play for that. ... Yes, looks like. It depends on how the customer pull is.

    How to verify

    detailed_narrative

    Risks & concerns

    2
    RiskSeverity

    Impact of tax notices and search operations

    Analyst raised concerns about frequent tax notices/demands and search operations; management stated they have legal opinion and are confident in challenging them. — Analyst acknowledged

    medium

    Potential margin dilution from strategic lower-margin businesses

    Management indicated that taking on certain new strategic businesses or products might lead to lower margins, contributing to a conservative margin outlook. — Management acknowledged

    low

    Q&A highlights

    8

    “The Kia Syros, I think the artificial that they didn't sell as much as the fabric we have both. So that is why the ramp up things like this flow and in terms of the Maruti vehicles, we're on, no, Maruti should be in line. I think Maruti number should be quite accurate.”

    Clarified that lower-than-expected Q4 revenue growth was due to a product mix shift in Kia Syros (less artificial leather, more fabric), impacting realization.

    asked by Hitesh Goel

    2 min read6 chapters

    Detailed Narrative

    01

    Robust Financial Performance in Q4 and FY25

    NDR Auto Components delivered strong financial results for Q4 FY25, with total income growing 9.17% to ₹193.21 crore and EBITDA increasing 25.80% to ₹21.86 crore, achieving an EBITDA margin of 11.31%. PAT for the quarter surged 44.11% to ₹16.45 crore. For the full financial year 2024-25, total income rose 18.5% to ₹717.10 crore, and PAT grew 37.57% to ₹53.25 crore. The company also reported impressive return ratios, with ROE at 25.78% and ROCE at 32.29% for FY25.

    02

    Strategic Joint Ventures and Product Portfolio Expansion

    The company has significantly expanded its product basket and strategic partnerships. A 50-50 joint venture with Hayashi Telempu, involving an equal investment of ₹33.3 crore from both parties, was established to introduce disruptive offerings like Ambient Lighting, securing its first order from Toyota. Additionally, NDR Auto collaborated with Toyota Tsusho India and Toyotsu Vehitecs for seat insert fabric manufacturing, with state sales commencing in the quarter. The Ambient Lighting portfolio alone can add ₹2,000 to ₹10,000 per vehicle.

    03

    Ambitious Growth Outlook and Revenue Targets

    NDR Auto Components has set an ambitious target to achieve ₹3,000 crore in total income by FY30. This growth is projected to come from ₹2,000 crore in organic business expansion and an additional ₹1,000 crore from joint ventures and M&A activities over the next two years. The Hayashi JV is specifically targeted to contribute ₹300 crore over five years, with production expected to commence in July 2027, and an anticipated asset turnover of 4-5 times.

    04

    Focus on Operational Efficiency and Margin Management

    Management emphasized its focus on cost efficiencies to drive margins, including strategic negotiations with vendors due to increased volumes, optimization of personnel costs, and productivity improvements. Despite these efforts, the company maintains a conservative EBITDA margin guidance of 10%-12%. This cautious outlook is attributed to the potential for strategically onboarding new products or businesses that may initially have lower margins, balancing top-line growth with profitability.

    05

    Capital Allocation and Shareholder Returns Strategy

    The company plans a moderate CAPEX of ₹20 crore for the upcoming financial year and a similar amount for the year after, primarily directed towards new EV projects, tooling, and BIW projects. NDR Auto Components is currently debt-free and holds ₹80 crore in cash, providing comfort for organic growth through internal accruals. The company adheres to a dividend distribution policy of 25% and aims for a payout ratio between 10% and 15%, having paid approximately ₹2.75 per share this year.

    06

    Management Strengthening and Governance

    NDR Auto Components has bolstered its leadership team with key hires such as Mr. Rajiv Arora as Business Head and Mr. Vikram Rathi as CFO & Vice President, focusing on execution, new joint ventures, and strengthening OEM relationships. The company also highlighted the appointment of a Big 4 firm as its auditor, signaling a commitment to enhanced corporate governance and transparency.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.