Jtekt India Limited — PPTs, 21-11-2024: Investor Presentation

**Financial Highlights:** JTEKT India reported a revenue of ₹605.3 crore for Q2 FY2024-25, marking a 9.5% growth from the previous quarter and exceeding the industry growth rate of 3.7%. However, EBITDA declined to ₹49.4 crore, reflecting a contracting margin of 8.2%, primarily due to an exceptional warranty provision that negatively impacted profitability. PAT was recorded at ₹19.4 crore for Q2, a decrease compared to ₹29.9 crore in Q2 FY2023.

**Strategic Initiatives and Growth Drivers:** The company continues to enhance operational efficiencies to improve sales and margin absorption. The management is focused on long-term strategic goals that include optimizing production processes and product offerings to meet growing market demands.

**Business Developments:** JTEKT maintains a diverse product portfolio that includes high-performance steering systems. The company services major vehicle manufacturers in India, indicating robust client relationships which can drive future growth.

**Market Position and Competitive Advantage:** JTEKT India leverages advanced technology sourced from its parent company, JTEKT Corporation, positioning itself as a key player in the steering systems market.

**Investor Implications:** While recent quarterly results reflect challenges in profitability, the sustained revenue growth and strategic focus suggest a positive outlook for potential recovery and growth in the ensuing quarters. Investors should monitor the effectiveness of the management’s initiatives to mitigate exceptional costs and improve margins.