Talbros Automotive Q1 - Ebitda Margin Is Expected To Be Sustainable At 16.5% In Coming Quarters: Anand Rathi

Anand Rathi Report

On a consolidated basis, Talbros Automotive Components Ltd.'s topline increased by 11.8% YoY and remain flat QoQ to Rs 2,043 million driven by effective order execution and operational efficiencies.

Ebitda increased by 17.1% YoY and fell by 3.3% QoQ to Rs 297 million. Ebitda margin was up by 66 basis points YoY and fell by 61bps QoQ to 14.5%. Adjusted profit before tax was up by 19.6% YoY and fell by 7.8% QoQ to Rs 264 million.

Adjusted net profit was up by 18.3% YoY and fell by 4.1% QoQ to Rs 206 million. Overall, Q1 FY25 performance was in-line with our estimates.

In Q1 FY25, company’s volume growth were 10% YoY (two-wheeler : 20% YoY, passenger vehicle: 6% YoY, tractors : 4% YoY). Commercial vehicle segment remain sluggish which led to lower growth. The company saw an increase in sales by 27% (highest ever).

Ebitda margin remained flat due to higher employee cost led by 10% salary increase and one-time incentives.

As per the company, there has been a delay of three to six months in a vehicle launch, which is preventing commercialization.

Demand for commercial vehicles is expected to pick up post Q2 FY25, driven by an uptick in infra projects post monsoon and retail demand, as well as the scrapping of older government vehicles.

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