Precision Camshafts

Precision Camshafts Limited shareholders approved the disposal of 100% shareholding in a material subsidiary through insolvency proceedings via special resolution passed by postal ballot. The remote e-voting process ran from September 16, 2025 to October 15, 2025. Out of 62,864,792 votes polled representing 66.18% of outstanding shares, 62,853,162 votes (99.98%) were cast in favor while 11,630 votes (0.02%) were against the resolution. The voting included promoter and promoter group holding 62,092,363 shares, public institutions with 406,807 shares, and public non-institutions with 32,486,665 shares. All promoter group votes and public institution votes were unanimously in favor, while public non-institutional investors showed 98.26% support. The scrutinizer confirmed the resolution secured the requisite majority and was passed as a special resolution.

Precision Camshafts Limited has issued a postal ballot notice seeking shareholder approval for disposing of its 100% shareholding in material subsidiary MFT Motoren und Fahrzeugtechnik GmbH, Germany, by initiating insolvency proceedings. The company holds MFT through its wholly-owned subsidiary PCL (International) Holding B.V., Netherlands. MFT is facing persistent financial difficulties due to economic slowdown in Europe, with significantly reduced customer call-offs causing severe cash flow impact from June to August 2025. The subsidiary is unable to sustain operations due to acute liquidity constraints, making insolvency proceedings necessary under German law. E-voting will be conducted from September 16 to October 15, 2025, with results to be announced by October 17, 2025. Upon completion of insolvency and liquidation, MFT will cease to exist and no longer be a subsidiary of Precision Camshafts.

Precision Camshafts Limited reported quarterly results showing consolidated total income of Rs. 221 crores, up 10.7% quarter-on-quarter, with standalone business income reaching Rs. 164 crores, up 11.2% QoQ. The company achieved an EBITDA margin of 18.5% on consolidated basis and 26% on standalone basis. Net profit increased to Rs. 25.6 crores compared to Rs. 18 crores in the same quarter last year. The automotive component manufacturer faced headwinds in European operations, with subsidiary MFT experiencing critical liquidity issues due to a 30% drop in customer demand and 20-30% sudden volume drops from European customers. However, strong domestic business growth helped offset these challenges. The company's e-mobility initiatives showed mixed results, with EMOSS in Netherlands facing reduced customer forecasts while new orders for diesel to electric vehicle conversions were received in India. MEMCO subsidiary reported Rs. 13 crores revenue with growth from existing customers and addition of 2-3 new customers. The company expects new business acquired from customers in India and overseas to start production by mid-2026, with electric heavy commercial vehicle business projected to contribute to revenues from FY'27.