Precision Camshafts Limited — Investor Meet, 26-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Precision Camshafts Limited reported standalone revenue of ₹143 crore for Q3 FY25, a decrease of 21% quarter-on-quarter. Net profit was ₹5.3 crore, down from ₹13 crore in the previous quarter, primarily due to reduced sales and increased operational costs. EBITDA margin stood at 10.9%, with a decrease of 13% in sales volume for both cast and machine camshafts. Consolidated income also fell by 18% to ₹195 crore, with a loss before tax of ₹4.5 crore and a profit after tax of ₹6 crore, resulting in a consolidated EBITDA margin of 10.83%.

**Future Outlook and Growth Drivers:** Management is optimistic about the completion of two new manufacturing plants in Solapur, which will enhance assembled camshaft production and support EV initiatives. They anticipate higher demand for electrification in logistics and waste management sectors and report ongoing discussions with customers regarding heavy vehicle electrification projects.

**Order Book and Operational Updates:** The company is preparing for new projects expected to start production in 2025-2026, focusing on import substitution for domestic OEMs. Efforts are aimed at stabilizing production amid a broader automotive industry slowdown.

**Analyst Q&A Insights:** Analysts inquired about revenue projections and market dynamics. Management confirmed no loss of customers or market share, attributing volume drops to overall market conditions, particularly in Europe. They indicated cautious optimism for recovery by early 2026 in Europe, while expecting demand growth in India driven by customer engagement in electrification projects.

**Market or Regulatory Updates:** The geopolitical situation in Europe has impacted operations and supply chains, increasing price volatility for auto parts. Despite these challenges, the company remains committed to managing risks and seizing opportunities in a competitive market.

**Strategic Focus Areas:** Emphasis on innovation and localization in the EV sector, exploring diverse customer needs across various sectors, while adapting operational capabilities to current market demands reflects a strategic pivot towards sustainable growth.

**Investor Insight:** With a focus on expanding electrification initiatives and plans for new manufacturing capacities, Precision Camshafts maintains a balanced growth outlook. However, current financial pressures and market volatility suggest caution; potential for a 'hold' perspective may be warranted until signs of recovery are more pronounced.