Remsons Industries , a leading player in the automotive components sector, has reported a robust performance for the first quarter, marking significant growth and strategic expansions across its business segments.

Strong Financial Performance

The company reported consolidated revenue of ₹99.60 crores for Q1, representing a substantial 30% year-on-year growth. This growth was primarily driven by strong export performance and contributions from its UK entities. The company maintained a healthy EBITDA margin of 11%, with profit after tax reported at approximately 4% margin.

Major Contract Wins and Strategic Developments

Remsons secured a prestigious contract from Stellantis North America for the supply of controlled cables, valued at over ₹300.00 crores. This significant order, to be executed over seven years, will commence deliveries from the next financial year.

In a strategic move to advance into green mobility, Remsons acquired a 36% stake in Astro Motors, an emerging player in India's three-wheeler commercial EV segment. This acquisition positions Remsons to capitalize on the shift towards clean, sustainable transportation in urban and commercial logistics.

Expansion into Railway Sector

The company inaugurated a new state-of-the-art manufacturing facility dedicated to railway applications in Chakan, Pune. This ₹5.00 crore investment marks Remsons' entry into the railway sector, catering to both freight and passenger segments.

International Orders and Partnerships

Remsons' subsidiaries have secured several international orders:

• Remsons Automotive received a letter of intent from Ford Turkey valued at ₹80.00 crores, to be executed over 10 years.
• BEE Lighting secured a new purchase order worth ₹12.00 crores from a premier German multi-brand OEM.
• Remsons-Uni Autonics Private Limited obtained an international order worth ₹3.00 crores from a leading German multi-brand OEM for the supply of exhaust gas recirculation (EGR) sensors.

Additionally, the company entered into a strategic technical license agreement with AUSIS Automotive Systems Brazil, enhancing its global footprint and technology leadership.

Future Outlook

Rahul Kejriwal, Whole-Time Director of Remsons Industries, expressed confidence in achieving the company's revenue target of ₹900.00-1,000.00 crores by FY29. The growth strategy focuses on exports, shifting towards higher value-added engineering products, and strategic acquisitions. The company aims to expand its EBITDA margins to 13-14% range in the coming years.

Financial Stability and Dividends

Despite expansions and investments, Remsons maintained a strong balance sheet with a net debt-to-equity ratio of 0.63x. The Board approved a dividend of ₹0.30 per share for the quarter.

Recognition

Remsons Industries was ranked 30th among India's top-grade mid-size workplaces and recognized as one of the best workplaces in the auto and auto-component sector. The company's Group CEO, Mr. Amit Srivastava, was honored as one of India's top 50 CEOs.

Remsons Industries Limited , a leading player in the automotive components sector, has announced mixed financial results for the first quarter, with strong consolidated growth offsetting standalone challenges.

Financial Highlights

Consolidated Performance

Standalone Performance

Operational Performance

While Remsons Industries faced challenges in its standalone operations with declining revenue and profit, its consolidated results showed robust growth. The significant improvement in consolidated performance indicates strong contributions from subsidiaries and associated companies.

Strategic Developments

1. Formation of a new subsidiary: Remsons Edge Technologies Private Limited
2. Acquisition of a 35.86% stake in Astro Motors Private Limited

These strategic moves are expected to expand Remsons Industries' business footprint and potentially contribute to future growth.

Corporate Governance Update

The Board of Directors has approved the appointment of M/s. M Baldeva Associates, Company Secretaries, Mumbai, as Secretarial Auditors of the Company for a period of 5 consecutive years from FY 2025-26 to FY 2029-30, subject to shareholder approval.

Future Outlook

Despite challenges in standalone operations, Remsons Industries' strong consolidated growth and strategic expansions position it well for future opportunities in the automotive components sector. The company's focus on diversification and operational efficiency may help in navigating market fluctuations and driving long-term growth.

Note: All financial figures are in lakhs of Indian Rupees.