Kross Limited — PPTs, 17-05-2025: Investor Presentation

1. Financial Highlights:

Kross Limited reported FY25 revenue of ₹620.4 Cr, largely flat year-on-year, with EBITDA steady at ₹81.3 Cr and margin improving slightly to 13.1%. Profit after tax grew 7% to ₹48 Cr, lifting PAT margin to 7.7%. Q4 revenue rose 1.1% YoY to ₹185 Cr, driven by a 23.3% quarter-on-quarter jump led by record trailer axle production and sales. Gross fixed asset turnover eased to 4.7x (from 5.6x), and RoCE moderated to 16.7% (from 28.2%). Net debt declined sharply post-IPO, pushing debt-to-equity down to 0.1x. Cash and equivalents improved to ₹82.8 Cr from ₹5.7 Cr.

2. Strategic Initiatives & Growth Drivers:

Kross is launching India’s first advanced extrusion line, boosting trailer axle capacity from 5,000 to 7,500 units/month and enabling entry into the tag axle segment by Q2 FY26. A ₹167 Cr seamless tube plant aimed at backward integration and new markets like oil & gas pipelines will start by Q3 FY27. New product introductions include tipping jacks from H2 FY26, adding diversification. Capacity expansions continue with investments in hardening furnaces and CNC machines.

3. Business Developments:

Exports grew to 3.2% of revenue (₹19.7 Cr) driven by robust European OEM partnerships despite global tariff challenges. The company added over 100 new trailer axle customers recently. Operationally, axle beam extrusion trials were completed; a 2,000-ton screw press was commissioned to enhance forging. The Plant 1 GAIL Gas Line inauguration shows commitment to sustainable operations.

4. Market Position & Competitive Advantage:

Kross stands as a leading Indian maker of trailer axles and suspension assemblies with integrated capabilities covering forging, casting, machining, and design. It is only the second Indian company offering a full trailer axle product basket. Strong OEM client ties and a wide dealer network across key states support its leadership. In-house design and backward integration provide scale and cost advantages amid rising capacity utilization.

5. Investor Implications:

Steady financial performance amid headwinds, aggressive capacity expansions, and product diversification signal positive growth potential. Backward integration with the seamless tube plant and extrusion line should improve margins and strengthen the competitive moat. Export growth adds incremental opportunity. Execution timelines and sustaining demand remain risks, but a healthier balance sheet and reduced leverage provide comfort. Overall, strategic investments and operational focus create a constructive outlook for investors.