Ask Automotive Ltd (NSE: ASKAUTOLTD) Q4 2025 Earnings Call dated May. 14, 2025
Corporate Participants:
Kuldip Singh Rathee — Chairman and Managing Director
Unidentified Speaker
Analysts:
Unidentified Participant
Mahesh Atal — Analyst
Ronak Mehta — Analyst
Naveen Dubey — Analyst
Bismita Nayak — Analyst
Joseph George — Analyst
Hitesh Thakurani — Analyst
Ashok Shah — Analyst
Presentation:
Operator
The conference is now being recorded. Foreign Ladies and gentlemen, good day and welcome to the Ask Automotive Q4 and FY25 post earnings call hosted by Add Factors PR. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rushab Shah. Thank you. And over to you sir.
Unidentified Participant
Thank you. A very good evening to everyone and warm welcome to the Q4 and FY25 earnings call of Ask Automotive Ltd. From the senior management, we have with us Mr. Kuldeep Singh Rathi, Chairman and Managing Director, Mr. Aman Rathi, Old Time Director and Mr. Naresh Kumar Sharma, Chief Financial Officer. Before we begin the earnings call, I would like to mention that some of the statements made during today’s call may be forward looking in nature and hence it may involve risks and uncertainties including those related to future financials and operating performance of the company.
Please bear with us if there are any call drops during the course of the conference call, we would ensure that the call is reconnected at the earliest. I would now like to hand over the call to Mr. Kuldeep Singhrati, Chairman and Managing Director for his opening remarks. Thank you. And over to you, sir.Good evening ladies and gentlemen. It is my great pleasure to welcome you all to our quarter four and FY25 earnings conference call. I hope you have had the opportunity to review the detailed presentation submitted to the exchanges and available on our website. As we all are aware, the global economy is facing headwinds which have caused uncertainty across the world, especially in the emerging economies. However, the Indian economy remains resilient based on its sound economic growth and strong fundamentals. Adding to this positive outlook, the Indian Meteorological Department’s forecast of above average normal monsoon brings renewed optimism, especially for the rural economy. This is particularly encouraging for the two wheeler industry. Now let me begin by sharing a quick overview of the broader industry. As reported by CN, the Indian automobile sector witnessed healthy momentum in FY25 with overall vehicle production across all segments registering a robust.
Kuldip Singh Rathee — Chairman and Managing Director
Was year on year growth of 9.1%. The two wheeler segment in particular stood out with a production growth of 11.3% on a year on year basis.
This recovery is because of the rising rural demand and a notable resurgence in consumer confidence. As a result, Two Wheeler domestic sales grew by 9.1% year on year. This segment was supported by better connectivity in rural and semi urban areas along with the launch of new models offering enhanced features and greater value. The two wheeler industry closed financial year 25 with a strong production volume of 23.9 million units, up from 21.15 million units in FY24.
In Q4 alone, production touched 5.8 million units as compared to 5.5 million in the same quarter last year. On the exports front, the tubular segment delivered an impressive performance with a 21.4% increase year on year reaching 4.2 million units. This was driven by the introduction of new models and successful penetration into new international markets.
Turning to electric vehicles, a key focus area for our industry, total EV registrations in the country reached 1.97 million units in FY25, making a 16.9% growth year on year. However, still has a share of business of less than 5% of the total two wheeler industry. Our share of business is growing as per the growth of the EV industry. Looking ahead, we believe that industry stands to gain further from supportive macroeconomic policies. The recent reforms in personal income tax announced in the Union Budget 202526 combined with two successive rate cuts by the Reserve bank of India are likely to enhance consumer purchasing and improve access to vehicle financing, creating a conducive environment for sustained demand.
The good monsoon forecast will ensure rising income in the agriculture sector and will be beneficial for the two wheeler sector. With this positive backdrop, we remain optimistic about the growth trajectory of the sector in the coming quarters. Before we move on to ask business performance, I would like to highlight an important development from this year. Crisil Ratings upgraded our long term credit rating from AA minus to AA while reaffirming our short term rating at Crystal A1.
This upgrade reflects the company has improved capital structure, better financial flexibility and strong volume growth. Moving on to the business updates, I am delighted to share with you that we had a strong finish to the fourth quarter and full year. In both revenue and profitability. This marks our sixth consecutive quarter of robust performance since the company’s listing last year. During Q4FY25 we delivered a growth of 8.5% in revenue, 24.7% in EBITDA and 20.6% in CAD on year on year basis we continue to outperform the two wheeler industry in terms of vehicle production growth during Q4FY25. Additionally, we delivered an EBITDA margin of 12.5% in Q4FY25 representing an improvement of 162 basis points over Q4FY24. As a result of strong performance in Q4FY25, we have surpassed our FY25 EBITDA margin guidance by achieving a full year EBITDA margin of 12.3%. Our revenue has grown by 20.2% EBITDA by 42%, 42.7% and PAD by 42.5% in FY25 on year on year basis our EBITDA margins for the year stood at 12.3% the FY25 with an improvement of 193 basis points on year on year basis. Our aim is not only to sustain this level of EBITDA margins but to improve gradually in the subsequent quarters depending upon the growth of the two wheeler industry. In FY26 with strong performance on profitability, our earning per share in FY25 has increased to rupees 12.6 per share against 8.8 per share in the same period last year. Our all three product segments performed well in FY25. In terms of revenue growth, we have sustained our market leadership position in the Advanced Pricing system. Our advanced pricing System revenue grew by 9% in Q4 and 16% in FY25 on year on year basis the Aluminium Lightweighting Precision Solutions revenue grew by 21% in Q4 and 28% in FY25 on a year on year basis. The safety control cable revenue also recorded growth of 1% in Q4 and 14% in FY25 on year on year basis. As mentioned in DRHP, our wheel assembly business has very low margin and we were requesting the customer for the last two years to shift this business to someone else. Now the customer has shifted 50% business from Q4 FY25 and FY26 still impact our revenues by approximately 300 crores. However, our EBITDA margins will improve by 80 basis points on account of this. In the dynamic and unstable global geopolitical environment. Our revenue from exports remained the same at rupees 147 crore against rupees 174 crore last year. Also as expressed in the previous interactions, I am delighted to share that we have achieved double digit ebitda margins at 12.5% in Q4 and 12.3% in FY25 compared to 10.3% in last year. Improvement in margins during FY25 are mainly driven by better economies of scale, improved volumes, better product mix to the customers and continued focus on cost optimization. We had delivered Strong returns in FY25 with ROAC at 27.7% and ROA at 26.5%. We have also improved our debt profile with debt to equity reducing 0.2 0.38 against 0.42 last year. Our average debt to EBITDA is at 0.83 in FY25. The board has recommended a dividend of 75% that is rupees 1.5 per equity share on the face value of rupees to each. I would now like to give you updates that our Bangalore facilities started commercial production on 14th January 202025 and ramping up fast. This will be our 8th manufacturing facility and the third one in South India. Our largest manufacturing facility at Karodi, Rajasthan with an investment of INR4.9 billion as on 31st March 2025 is ramping up fast to deliver future growth. Some more key new initiatives to be highlighted are the signed technical collaboration agreement with liho Taiwan to Manuf 2 Wheeler HPV alloy wheels in February 24th. The capacity already built up and the product is under testing. We entered into a strategic partnership with Yushu Yanagawa City Limited Japan in March 25 for high pressure die casted alloy wheels for two wheelers. We also signed a joint venture agreement with ISIN Group Japan Adopt and global tier 1 auto component supplier to market and sell the single car products in independent aftermarket. In April 24th product range unveiled at Bharat Mobility Global Expo 2025. The products have been launched in market in April 2025. Largest manufacturing plant at Karoli, Rajasthan with investment of rupees 4.9 billion up to 3-31-2025 is ramping up fast to deliver future growth. Bengalur facility started commercial production 14 January and. Up fast. These initiatives underscore Ask Automotive’s commitment to innovation, sustainability and market leadership. Thank you very much for your patient hearing and this will leave the floor open for question and answer. Thank you.
Questions and Answers:
Operator
Thank you, sir. Ladies and gentlemen, we will now begin with a question and answer session. Anyone who wishes to ask the question may press star and one on on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Mahesh Atal from ATAL Investment Advisors. Please go ahead.
Mahesh Atal
Can I ask my question in Hindi? Hello Japanese company or already its technology say Japanese OEM suppliers Go supply this we have made this tie up to supply to some Japanese manufacturer potential approximately those are Karoki market overall so just slowly gravity die castings so depending on potential right.
Kuldip Singh Rathee
India may Bandra but do see technology Sebandra gravity diecasting Japanese manufacturers. Project complete.
Mahesh Atal
Okay.
Kuldip Singh Rathee
Product will come out or next year. Market size of this product, entire product profile identified products and this is a trading venture. It is not a manufacturing venture. You should appreciate that.
Mahesh Atal
All right, all right. All right. Thank you so much. Thank you so much.
Operator
Thank you. The next question comes from the line of Ronak Mehta from ICICI Securities. Please go ahead.
Ronak Mehta
Yeah. Hi. Thanks for the opportunity. Hi Shah. Congratulations on good set of numbers. I have two questions. First is can you highlight some of the new order rates that will drive your continued outperformance for the next year? Because I believe alloy wheel business is still in the the products are still under testing. So apart from those, apart from the alloy business, what all can what all as a new owner is paying highlights. That will be the first question.
Kuldip Singh Rathee
We have the orders. I can only assure you that we will be growing in the mid teens and we’ll outperform the market, outperform the industry again in this financial year because we have the confirmed orders to that extent. However, we also expect that the alloy wheel with high pressure die casting that we made with the Taiwan technology is under an advanced stage of testing and we hope to get the clearances by June or July end. And you we are confident of starting the supplies in the H2 of this financial.
Ronak Mehta
Okay, so is it fair to believe that the second half will see alloy wheels about and. From alloy wheel for this year, Outlook for this year.
Kuldip Singh Rathee
So let’s let the things stabilize. I can’t quantify the numbers like that. But yes, as I have told you, we will again outperform the industry as is our track record.
Ronak Mehta
Okay, the second question is on the EV digits. So as EVs become more prevalent or what role do you see do foresee ASV automotive playing in the supply chain? Would you restrict yourself to this aluminum casting or which is an EV agnostic component or you’re open to a bigger role in EV ecosystem with EV specific components? Slightly a longer term question.
Kuldip Singh Rathee
Overall we are playing a bigger role. We are already supplying to 80% of the organized EV market for the last two years. But as you know the EV market still has is less than 5% of the total two wheeler market. So we are growing as the EV market is growing. However, our content per vehicle is higher because of the aluminum lightweighting components in the EV segment. So if it grows faster we will also gain outcome.
Ronak Mehta
So actually my question was with respect to new products specifically for EV drive, also looking at adding new products specifically for EVs apart from the aluminum casting related products or you restrict yourself to aluminum casting.
Kuldip Singh Rathee
We have the three verticals at the moment, so we’ll remain in the three verticals.
Ronak Mehta
All right. Okay. Thank you.
Operator
Thank you. A reminder to all participants, you may press Star and one to ask a question. The next question comes from the line of Naveen Dubey from Narolia Financial Services. Please go ahead.
Naveen Dubey
Thanks for the opportunity sir and congratulations on a very good set of numbers. My question is related to the two wheeler industry. So recently Hero is saying that the two wheeler industry is expected to grow around 6 to 8% in FY26. So how do we in the domestic market and how do we see export markets to pan out? Any thoughts on export markets also?
Kuldip Singh Rathee
Well, as far as the two wheeler industry is concerned, we are also very hopeful that it will grow about 6 to 8%. What Hero has said and we are confident because of the various reasons. Just like I mentioned, you know the good monsoon interest rate cut and tax benefits the government gave in the budget. So that kind of growth we will see. Of the two wheeler number one and number two exports. I think the geopolitical situation is quite. I see at the moment because of the tariffs and the various wars. But I am an optimist and I hope the clouds will clear very soon. And we expect a very good growth in this year. So last year we could remain constant stagnant, you know. But this year we are still hopeful of a very good growth in the exports.
Naveen Dubey
The second question is related to the agreement which we have done with Kyushu Yanagawa, Japan. Sir, is this product is related to ICE or for specifically to EV product?
Kuldip Singh Rathee
This can go in both vehicles. You know, ICE as well as evidence.
Naveen Dubey
Okay. And we have done two technical agreements in last two years. So any other agreement in pipeline or any other for any other product that we can see, are you looking at.
Kuldip Singh Rathee
We keep on looking for good technical opportunities as you say. As you will see. You have seen that we like to have the first mover advantage. So we are talking to many different people. And once something materializes, the whole market will know through the stock exchange.
Naveen Dubey
Great to hear on that front. A couple of questions related to one is we have seen sharp improvement in gross margin. So I think that is related to that. Venus and believe business or any other
Kuldip Singh Rathee
Wheel assembly business has gone only from March only. So there’s not much to be seen. In the last financial year 25. However, in the financial year 26 as we said, the revenue will drop by 300 crores. However the margins will go because of the wheel assembly by 80 basis point.
Naveen Dubey
Okay, thank you. Thank you sir. That’s it. From my side.
Operator
Thank you. A reminder to all participants, you may press Star and one to ask a question. The next question comes from the line of Abinash S from NAFA amc. Please go ahead.
Unidentified Participant
Congratulations on a good set of numbers. So when I went through PPT we had mentioned that we already had a partnership technical collaboration with theoho to manufacture HPDC. And in March 25th we have signed a new technical collaboration with another manufacturer. So what are the reasons for signing up with a new person? Is it a different technology, a different grade of technology for the same hpdc? Or is there any delays in.
Unidentified Participant
New technical arrangement. That’s question number one.
Question number two is you have said that the capacity utilization is improving in the Karoli plant. What is the current utilization rate and when can we achieve full utilization? And at full utilization what would be our peak revenue? Because that being the largest plant. So could you provide some insights? That would be great. Thank you.
Kuldip Singh Rathee
Yeah. Regarding the two collaborations, we have to be the. We have the first mover advantage with that technology and we want to be the best in the class. That has been the philosophy of the company. So we limbide both the technologies and the Japanese player will be feeding the Japanese customer more and the Taiwanese player will be feeding the rest of the market. You know, that is. That has been the philosophy behind it. Number one.
And the second question, what was
Unidentified Speaker
Karoli?
Kuldip Singh Rathee
Karoli we have already invested 490 crores as I mentioned till March end. The investments still carrying on because we have a huge potential in the growth in Karoli. So another approximately 200 crores will be spending this year also further and the peak potential of the Karoli plant will be around 1100-crores, which we will see in the times to come. At the moment the Karoli plant we have revenues of about 500 to 600 crores and it’s operating on 50% capacity utilization.
Unidentified Participant
Thank you sir.
Operator
Thank you. Participants, please press star and one to ask a question. The next question comes from the line of Bismit Nayak from Coast Park Advisors. Please go ahead.
Bismita Nayak
Thank you. So my first question would be on. We’ve seen a sharp slowdown in growth. Like earlier we were growing around 20 to 30%. Now this quarter we have grown 9%. So was there a one off in the base or something or postponement of order or something like that?
Kuldip Singh Rathee
No, no, there’s neither postponement of order, nothing has happened. We have grown at 9%. Actual growth has been 16% if we count as I just mentioned that the wheel assembly, 60% of the wheel assembly went from the 15th of February onward. So if we add on what would have been the revenue of that then it would have been 16% growth. This phenomena will play in the next financial year also because as I said that. If we were supposed to let’s say grow 20% and that out of that that 300 crore business of the financial year will be seeing less, you know.
Bismita Nayak
Understood sir. And in an interview in the morning we had called out the 14% guidance for FY26. So 80 wips, 80 coming from will assembly.
Kuldip Singh Rathee
In my interview in the morning I said that we’ll be improving by 150 basis point. So that becomes 13.8, you know. And I said out of this 150 basis point, 80 basis point will come because the wheel assembly is gone. And 70 basis point will come for the internal board efficiencies and economies of scale. However, we are aiming to achieve 14% EBITDA margins in next year. This coming financial.
Bismita Nayak
Understood sir. And lastly on the diecast hpdc. Who are the major players in gravity for diecasting? Who will be our competitors? From whom we will take market share?
Kuldip Singh Rathee
First let the product be tested and approved. I think because so many gravity diecasting players, you know very well at the market.
Bismita Nayak
Sure.
Kuldip Singh Rathee
We can’t, we cannot. We cannot say whose share will come once it is approved. So that the OEMs in the segments that we are targeting the top place we have to. We target all the OEMs for their scooter and motorcycle alloys. So once let the product be tested and approved, you know, then it is for them. It is for them to judge what are the advantages and whose share or whether they don’t cut anybody’s share, they just cut the import part or something.
Bismita Nayak
Understood sir. One last question. Any plans of orange or disc brakes?
Kuldip Singh Rathee
This brakes we are already supplying to the system suppliers. We are not into the system and we don’t intend to be the system. That’s a very small market opportunity. But we already supply the district pads, you know. We are supplying to Brembo for Hero as that it goes there and also to Endurance. Moreover we are exporting also the two wheeler disc brake pad to the European market.
Bismita Nayak
Understood. Thank you.
Operator
Thank you. A reminder to all participants. You may press Star and one to ask a question. Participants, please press star and one to ask a question. A reminder to all participants, you may press star and one to ask a question. The next question comes from the line of Mahesh Atal from Atal Investment Advisors. Please go ahead.
Mahesh Atal
Are we going to reduce? Why are we not able to plant machinery? Reduce 0.4 to say 0.38 financials are better or get to EBIT also reduce which is about 0.8 borrowings borrowings amount go
Kuldip Singh Rathee
Amount keser come over business expand Otajara only Karangay I’m so optimistic Indian market pay. Further future expansion.
Mahesh Atal
Thank you.
Operator
Thank you. The next question comes from the line of Naveen Dubey from Naronia Financial Services. Please go ahead.
Naveen Dubey
Thanks for the opportunity. Again, just two questions. One is our working capital has improved over the last two years. What are the drivers for improving this?
Kuldip Singh Rathee
The one driver is certainly the very good inventory management. And the second is I think our customers are also so good that they are paying us on before time even.
Naveen Dubey
The second question is on how big we can scale our Bangalore plant we are investing and how further we can go from here on.
Kuldip Singh Rathee
And we will be investing 100 crores more this year. So that will be an investment of about 250 crores, you know. And so it will give us a revenue of approximately 400 crores or so. Yeah, four to five
Naveen Dubey
Considering the land area etc. Or we have to go for Greenfield.
Kuldip Singh Rathee
Whether we should go to Gujarat or we should go to Bangalore. Because we anticipate with one customer Gujarat also the expansion is coming.
Naveen Dubey
Okay. Okay. That’s great. Thank you sir. Thank you. And all the very best for future endeavors. Bye. Bye. Thank you.
Kuldip Singh Rathee
Thank you. Naveenji.
Operator
The next question comes from the line of Karav Sundar from Spark Capital. Please go ahead.
Unidentified Participant
Hi sir. Congratulations on the group set of numbers. I just wanted to check with you on capacity utilization across our plants and especially the new plants. Bangalore also if you can give it segment wise.
Kuldip Singh Rathee
The capacity of all our plants except Karoli and Penguard has just started. It will be starting this quarter only actually. And so capacity utilization of Karoli plant I have repeatedly said is around 50, 55%. And even this new plant in Bangalore, we expect this end of the last quarter of this FY26 we should have a capacity utilization of 60, 70 rest. All plants are in full capacity.
Unidentified Participant
Okay. Thank you sir.
Operator
Thank you. The next question comes from the line of Joseph from IIFL Capital. Please go ahead.
Joseph George
Hi sir, just one question. You mentioned that you’re going to spend some 450 crores this year. Is that entire or is that entire? I’m going to be spending FY26.
Kuldip Singh Rathee
Yes, this is entire. Entire. That’s what we propose to do. As I said that we’ll be making additional capacities. And out of that the bigger amount of about 150 to 200 crores will be for this alloy wheel plant for the Japanese collaboration of which we see they will see the results in the next financial year.
Joseph George
Sure, sir. And when we think about capex beyond FY26, is that. I mean is the intensity going to be as high or do you expect the intensity to come out?
Kuldip Singh Rathee
We are optimists so we always think that the intensity should remain the same. Because now the world is looking at India. Hopefully, you know, once the peace prevails throughout the world I think they will look towards India.
Joseph George
Okay, thank you.
Operator
Thank you. The next question comes from the line of Hitesh Takorani from HDFC Securities Institutional Equities. Please go ahead.
Hitesh Thakurani
Yeah. Hi. So my first question is on the content for vehicle. How different is it in a motorcycle versus versus a scooter? And do we view the scooterization trend continuing?
Kuldip Singh Rathee
Our content is almost similar. You know, there’s hardly any difference. And yes, at the moment there is a trend towards scooters which is good, you know.
Hitesh Thakurani
Sure, sir. And my second question is how much more expensive on average is a. Is a HPDC alloy wheel than a regular alloy wheel? And what are the benefits of the HPDC technology pricing?
Kuldip Singh Rathee
We don’t know. At the moment, once we start the supplies and then probably in the next two calls we’ll be able to tell you that about the difference in pricing or something. But. Well, the supply should be smooth with less rejection. That’s what our presumption is. You know, and the HPDC LRD
Hitesh Thakurani
And the benefits of the HPDC before.
Kuldip Singh Rathee
That’s what we said that it’s a much smoother supply with less rejections and much more mechanical controls.
Hitesh Thakurani
Sure, sir. Thank you.
Operator
Thank you. A reminder to all participants, you may press star N1 to ask a question. Ladies and gentlemen, the next question comes from the line of Ashok Shah from Eklavia Invesco. Please go ahead.
Ashok Shah
Thanks for taking my question. Sir, can we just explain the future of the EV scooter in a scooter market or a bike market? This is. We are planning for the. We are doing for the EV also.
Unidentified Speaker
Can you. Can you repeat. Can you repeat it? There was a blurry.
Ashok Shah
Yeah, it’s okay. Yeah. Sir, we are doing a supply to also to EV scooters. So due to the cost effectiveness the market of the EV scooter will increase and overtake over the next five years to the normal scooters and bikes.
Kuldip Singh Rathee
That we can’t say that you need to ask to the EV manufacturers but we wish that it increases. We had expected it to increase further but I think there is a price gap. So. And they are losing money on that same price. So I don’t know. We can tell the statistics that it is less than 5% of the total market.
Ashok Shah
So what? Our supply to the EV market currently in our portal,
Kuldip Singh Rathee
We are also the same ratio. We are supplying to the EV players, all EV players. So we are fully hashed whether the ICE grows or the EV grows, we are supplying to everyone. So it doesn’t make a difference to us.
Ashok Shah
Okay, thank you. Thank you.
Operator
Thank you. Ladies and gentlemen. That was the last question for today. I would now like to hand the conference over to Mr. Kuldeep Singharati, Chairman and Managing Director. Ask KSK Automotive limited to give his closing remarks.
Kuldip Singh Rathee
Thank you, ladies and gentlemen. Thank you for such patient hearing. I’ll only say that. That we’ll keep on working the way we have been worked in the past and hopefully we’ll justify our performance in the times to come to the market. And one thing we forgot to mention that this year we improved our ROC with the capacity utilization from 23.64 to 27.5. I may assure you that next year also we’ll be doing very well and will be achieving an ROC close to this with the equity debt to equity also further improving, you know, and the performance going on a very sound footing. That’s what we will make all out efforts to justify our performance. And we’ll be in touch every quarter. And thank you very much for your patient.
Operator
Thank you, sir. Ladies and gentlemen, on behalf of Ask Automotive Limited, that concludes this conference, thank you for joining us. And you may now disconnect your lines.