Ndr Auto Components Limited — Investor Meet, 17-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:**

NDR Auto Components reported Q3 FY’25 total income of ₹176.22 crore, reflecting a 25% increase year-over-year. EBITDA rose by 43% to ₹19.61 crore, yielding EBITDA margins of 11.13%. Profit After Tax (PAT) soared 57% to ₹13.39 crore. For the nine months ended FY’25, total income reached ₹523.87 crore (up 22%), while EBITDA reached ₹55.79 crore (up 31%). PAT for the nine months stood at ₹36.87 crore, a 36% lift compared to the previous year. Return on Equity (ROE) and Return on Capital Employed (ROCE) reached 21.13% and 26.93%, respectively, marking historical highs for the company.

**Future Outlook and Growth Drivers:**

Management highlighted strong momentum from OEM partners, particularly with the recent order flow attributed to the launch of innovative seating solutions for Kia. Collaboration with Toyota Tsusho promises a move toward more localized production of seat insert fabrics, targeting commercial production by July 2026, with a revenue goal of ₹100 crore by FY’28.

**Order Book and Operational Updates:**

The current order book stands around ₹500-550 crore, including projections from new collaborations. The kickoff of seating solutions for Kia and a roll-out of sunshade products are key contributors to future revenue growth.

**Analyst Q&A Insights:**

Analysts queried the structure of the Toyota collaboration, which is a 100% owned subsidiary focusing on technical assistance. Questions regarding margin improvements reflected management's focus on cost reduction and operating leverage due to efficiency initiatives. Insights revealed a potential for FY’26 EBITDA margins to reach around 11% and FY’27 up to 12%.

**Market or Regulatory Updates:**

Management noted regulatory pressures in the industry are pushing for the implementation of airbags, which may drive demand for new product offerings.

**Strategic Focus Areas:**

NDR Auto is prioritizing innovation in seating technologies and increasing operational efficiencies. Management expressed confidence in growing margins through these initiatives while maintaining a focus on core partnerships.

**Investor Insight:**

NDR Auto's strong financials, solid growth trajectory, and strategic initiatives signal a favorable outlook. Given the robust partnerships and proactive market strategies, the investment thesis appears aligned with a positive stance on the stock.