India Nippon Electricals Limited — PPTs, 10-12-2024: Investor Presentation

**Financial Highlights:** For H1 FY25, India Nippon Electricals Limited (INEL) reported revenue of ₹3,964 million, a 9.1% year-on-year increase. EBITDA reached ₹409 million with a margin of 10.32%. The profit after tax stood at ₹393 million, marking a margin of 9.91%. Notably, the company has maintained a robust financial position with a debt-free status and a consistent dividend payout track record.

**Strategic Initiatives and Growth Drivers:** INEL is aggressively expanding its product portfolio, focusing on electronic ignition systems while venturing into electric vehicle (EV) technologies. The establishment of a new R&D center in Tamil Nadu demonstrates their commitment to innovation in the automotive sector. The company aims to increase its aftermarket sales to 15% by FY25.

**Business Developments:** The company has increased its market share among key customers from 33% to 42% over five years. Additionally, INEL has recently entered a technical licensing partnership to develop electronic fuel injection systems.

**Market Position and Competitive Advantage:** INEL is a leader in ignition systems for two-wheeled vehicles, with strong ties to major OEMs and a diversified clientele across North America, Japan, and Europe. The company's focus on quality and strong customer relationships enhances its competitive edge.

**Investor Implications:** With strong financial metrics, ongoing innovation, and expansion strategies in place, INEL presents a positive outlook for investors. The recent moves in EV technology and a solid growth trajectory in aftermarket services position the company favorably for future growth.