Precision Camshafts Reports 11% QoQ Growth Amid Mixed Global Performance
Precision Camshafts Limited (PCL) reported robust financial results for the quarter. Consolidated total income increased by 10.70% QoQ to Rs. 221.00 crores, while standalone business income grew 11.20% to Rs. 164.00 crores. The company achieved a consolidated EBITDA margin of 18.50% and a standalone EBITDA margin of 26.00%, with a net profit of Rs. 25.60 crores. PCL's domestic operations showed strong growth, offsetting challenges faced by its European subsidiaries. The company's e-mobility initiatives are progressing, with new orders for diesel to electric vehicle conversions in India and plans for electric heavy commercial vehicles. Despite European market difficulties, PCL remains optimistic about future growth prospects, with new business expected to start production by mid-2026.
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Precision Camshafts Limited (PCL), a leading automotive component manufacturer, has reported a robust financial performance for the quarter, showcasing resilience in the face of global market challenges. The company's consolidated total income reached Rs. 221.00 crores, marking a 10.70% quarter-on-quarter increase, while its standalone business income grew by 11.20% to Rs. 164.00 crores.
Financial Highlights
| Metric | Value |
|---|---|
| Consolidated total income | Rs. 221.00 crores (up 10.70% QoQ) |
| Standalone business income | Rs. 164.00 crores (up 11.20% QoQ) |
| Consolidated EBITDA margin | 18.50% |
| Standalone EBITDA margin | 26.00% |
| Net profit | Rs. 25.60 crores |
Mixed Performance Across Subsidiaries
While PCL's domestic operations showed strong growth, its European subsidiaries faced significant challenges:
- MEMCO: Reported revenue of Rs. 13.00 crores, showing growth from existing customers and adding 2-3 new customers.
- MFT (European subsidiary): Experienced critical liquidity issues due to a 30% drop in customer demand and sudden volume drops of 20-30% from European customers.
- EMOSS (e-mobility subsidiary in Netherlands): Faced reduced customer forecasts, with revenue of approximately Rs. 16.00 crores.
E-Mobility Initiatives
PCL's e-mobility efforts showed mixed results:
- Received new orders for diesel to electric vehicle conversions in India, particularly in cities like Pune and Nagpur.
- The electric heavy commercial vehicle business is progressing as planned, with the first vehicles expected to be ready by the end of the calendar year.
- Projected contribution to revenues from the electric heavy commercial vehicle business is expected from FY'27.
Future Outlook
Despite challenges in the European market, PCL remains optimistic about its growth prospects:
- New business acquired from customers in India and overseas is expected to start production by mid-2026.
- The company continues to focus on cost control and operational efficiency to maintain profitability.
- E-mobility initiatives in India are showing promise, with potential for significant growth in the coming years.
Karan Shah, Whole Time Director, Business Development at Precision Camshafts Limited, commented on the results during the earnings call, stating, "While Europe remains a challenging geography to operate in, business in India is growing strongly and offsetting this impact."
As PCL navigates through global market dynamics, its strong domestic performance and strategic initiatives in e-mobility position the company for potential growth in the coming quarters. Investors and stakeholders will be keenly watching how the company manages its European operations while capitalizing on opportunities in the Indian market and the emerging e-mobility sector.
Historical Stock Returns for Precision Camshafts
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.98% | -5.54% | -6.11% | +2.73% | -33.76% | +321.83% |
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