Sandhar Technologies Limited — Investor Meet, 24-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

1. **Financial Performance:** Sandhar Technologies reported a total income growth of 9.27% in Q3 and 10.34% for the nine-month period, demonstrating resilience despite industry challenges. Consolidated EBITDA stood at a 0.5% growth with margins improving from 9.6% to 10.34% year-on-year. The two-wheeler segment outperformed the industry with a 17.58% increase, while the four-wheeler segment saw a decline. Over 270 crore from joint ventures contributed with an average EBITDA of 12.5%. However, overseas operations faced difficulties, resulting in losses.

2. **Future Outlook and Growth Drivers:** Management is optimistic about maintaining growth momentum, despite geopolitical uncertainties, highlighted by the commencement of commercial production in Pune and positive market response for recently launched EV products. The focus remains on enhancing the product portfolio and increasing vehicle content.

3. **Order Book and Operational Updates:** No specific figures for the order book were provided, but management indicated readiness to ramp up production in Romania for FY26. They expect significant improvements based on stabilization following geopolitical tensions and growing customer demand.

4. **Analyst Q&A Insights (Detailed):**

- **Revenue and Profitability:** Management assured that current lower growth figures are considered an exception, projecting return to previously anticipated growth trajectories.

- **Market Position and Competitive Landscape:** Analysts questioned the impact of US tariffs. Management identified a negligible direct impact but acknowledged potential downstream effects from supply chain negotiations.

- **Operational Challenges or Risks:** Concerns about export demand were confirmed, with assurance of regained volumes in FY26.

- **Capex and Capital Allocation:** Management shared that they expect net debt to remain under 700 crore, with a repayment of approximately 100 crore next financial year, having invested 173 crore in CAPEX this year.

- **Strategic Priorities and Long-Term Vision:** Analysts noted ongoing efforts in Joint Ventures (JVs) yielding positive results, with continuous new product development focused on high-margin sectors.

5. **Market or Regulatory Updates:** No significant regulatory changes were discussed that could affect operations directly.

6. **Strategic Focus Areas:** Management’s emphasis on cost control, localization of production, and product diversification aligns with efforts to improve margins and bolster operations in both domestic and international markets.

7. **Investor Insight:** Sandhar Technologies shows a solid financial foothold and prospects for growth. While recent performance has faced headwinds, positive indications in joint ventures and new product lines signal potential for sustained recovery. Given the growth trajectory and strategic focus, this outlook leans towards a ‘buy’ position for retail investors.