Divgi Torqtransfer Systems Limited — PPTs, 16-11-2024: Investor Presentation

**Financial Highlights:** For H1 FY25, the company reported total income of ₹118.6 Cr, down 12.3% YoY, affected by lower transfer case volumes. However, the component business showed strong performance with a 56% growth, driven by a healthy order book. EBITDA decreased by 17.3% to ₹30.5 Cr, resulting in a margin of 25.7%. Profit after tax fell to ₹14 Cr, reflecting higher depreciation linked to recent capacity expansions.

**Strategic Initiatives and Growth Drivers:** Divgi is focusing on several initiatives, including recently signing an MOU for feasibility studies on manufacturing 200,000 automatic transmissions in India. The company anticipates growth in the sector, matching up to 8% revenue increase for H2 FY25 compared to H1.

**Business Developments:** The firm secured an order valued at approximately ₹800 Cr from a leading Indian OEM for transfer case products, which will be executed over a seven-year period starting from H2 FY27.

**Market Position and Competitive Advantage:** With strong emphasis on technology-led innovation, Divgi reinforced its position as India’s largest EV transmission manufacturer. Recognition as a key supplier in the automotive space continues to enhance its market standing.

**Investor Implications:** Looking ahead, while there are challenges due to the EV industry's slowdown, the potential for recovery in volume and the new contracts could signify strong growth opportunities for investors. Stakeholders should monitor upcoming production commitments and contract executions closely.