Menon Bearings Limited — PPTs, 17-05-2025: Investor Presentation

1. Financial Highlights:

Menon Bearings reported consolidated revenue of ₹242.52 Cr for FY25, up 14% YoY, led by strong growth in Bimetal (₹167.88 Cr, +15%) and Alkop (₹67.92 Cr, +5%). EBITDA rose slightly to ₹45.16 Cr with an 18.6% margin, down from 20.4% last year. PAT stood at ₹24.93 Cr (10.3% margin). Operating expenses increased 17%, mainly due to higher employee and other costs. The balance sheet remains healthy with equity of ₹158.55 Cr and borrowings of ₹21.89 Cr. Capex raised fixed assets to ₹102.46 Cr, supporting ongoing expansion.

2. Strategic Initiatives & Growth Drivers:

Capacity expansion for Bimetal (₹19.55 Cr capex completed) and Alkop (₹12.5 Cr ongoing) are progressing, with utilization at ~70% and 30%, respectively. Plans to commercialize thrust washers at a new plant are underway. Entry into EV space is notable, supplying Alkop parts to Porsche via Eaton, marking a shift to high-value, advanced components. Exports growing 25% annually are set to expand further into Africa and the USA.

3. Business Developments:

Menon is registering brake segment products with Indian Railways to unlock new institutional revenue. A ₹100 Cr revenue pipeline over two years is expected from approved components for a major tractor client, with production starting soon—highlighting successful product development and market reach.

4. Market Position & Competitive Advantage:

India’s leading engine bearings maker, Menon operates in an oligopolistic market with strong brand equity and presence in 24+ countries. Its in-house alloy manufacturing, machine building, and R&D capabilities create high barriers and cost efficiencies. Long-term OEM ties, zero capacity constraints, and exposure to less EV-sensitive segments sustain competitive advantage.

5. Investor Implications:

Strong topline growth, steady margins, and aggressive capacity build-out point to positive growth potential. EV component involvement and diversified customer base reduce risk. Execution of capex and export expansion remain key to watch. Stable margins amid rising costs and manageable debt underscore operational strength supporting sustainable returns.