Talbros Automotive Components Limited has reported strong financial performance for the first half of fiscal year 2022, along with significant business developments that position the company for future growth.

Financial Highlights

The company has demonstrated robust growth in its financial performance for H1FY22:

Export Performance

Talbros Automotive has shown improvement in its export portfolio:

• Export contribution increased from 25% in FY21 to 27% in H1FY22
• Standalone forgings business achieved 53% revenue from exports

New Business Developments

The company has secured several strategic business developments:

1. Multi-Year Order:

   • Secured through joint venture Marelli Talbros Chassis Systems
   • From a large European car manufacturer
   • For supplying Body in White parts
   • Estimated annual order value: ₹14.40 crores
   • Total contract value: Approximately ₹92.00 crores

2. Technical Collaboration:

   • Entered into a Technical Assistance Agreement with Japanese partner Sanwa Packing Industry
   • For light weight aluminium heat shields

3. Product Diversification:

   • Adding critical suspension components supply to electric vehicles
   • Expanding EV product lines in the order book

These developments showcase Talbros Automotive's focus on expanding its product portfolio, entering new markets, and positioning itself in the growing electric vehicle segment.

The company's strong financial performance, coupled with its strategic initiatives in exports and new product development, indicates a positive outlook for Talbros Automotive Components Limited in the automotive components sector.

Talbros Automotive Components Limited , a leading auto component manufacturer, has reported a steady performance for the first quarter, despite facing headwinds in the automotive sector. The company demonstrated resilience in navigating through a challenging market environment, marked by subdued demand and export slowdowns.

Financial Highlights

• Total revenue reached INR 211.00 crores, marking a marginal 1% year-on-year increase from INR 209.00 crores in the same quarter of the previous fiscal year.
• EBITDA remained stable at INR 35.00 crores, maintaining a healthy margin of 16.5%.
• Net profit grew by 8% to INR 22.00 crores, showcasing the company's ability to improve bottom-line performance despite top-line challenges.

Segment Performance

• The Gasket division recorded a 2% growth, with sales of INR 135.00 crores.
• The Forging division remained flat at INR 75.00 crores, primarily due to subdued European demand and equipment breakdowns.
• Joint ventures performed well, with Marelli Talbros and Talbros Marugo delivering strong EBITDA growth of 30% and 26% respectively.

Export Performance and Order Book

• Exports contributed 28% to the total income, with the UK accounting for 56% of the export mix, followed by Europe at 27% and the US at 13%.
• The company secured new orders worth INR 580.00 crores during the quarter, spanning across various product categories and geographies.

Market Context and Outlook

The Indian automotive industry faced headwinds in the quarter, with overall volumes declining by 5.1% year-on-year. The commercial vehicle segment, a key focus area for Talbros, saw a 1% decline. Despite these challenges, the company remains optimistic about future quarters.

Anuj Talwar, Joint Managing Director, stated, "We are looking at a stronger Q2 than Q1. Q3 seems to be very bullish because a lot of our order books, which have been delayed due to execution by OEMs, will come into berthing."

Strategic Focus

Talbros is committed to its long-term strategy of deepening relationships with OEMs, expanding its EV component offerings, and increasing exports. The company is in discussions with new OEMs to secure additional business and is exploring opportunities to expand its presence in European markets.

Capex and Capacity Expansion

The company continues to invest in capacity expansion, with plans to add new presses in its forging division. A 1,600-tonne press worth approximately INR 10.00 crores has been recently ordered, and another 4,000-tonne press is planned before the end of the calendar year.

Management Commentary

Navin Juneja, Director and Group CFO, expressed confidence in the company's outlook, stating, "We are still hopeful that we'll achieve a double-digit growth this financial year. With the increase in top line and our focus on exports targeting 35% by next year-end, we expect margins to improve further."

Talbros Automotive Components Limited remains focused on operational excellence and strategic growth initiatives as it navigates through the current market challenges, positioning itself for stronger performance in the coming quarters.