Endurance Technologies Limited (NSE: ENDURANCE) Q3 2025 Earnings Call dated Feb. 13, 2025
Corporate Participants:
Anurang Jain — Managing Director
Rajendra Abhange — Director and Chief Operating Officer
R.S. Raja Gopal Sastry — Group Chief Financial Officer
Massimo Venuti — Director and Chief Executive Officer, Endurance Overseas
Analysts:
Nishit Jalan — Analyst
Aditya Jhawar — Analyst
Jinesh Gandhi — Analyst
Shagun Beria — Analyst
Pramod Amthe — Analyst
Presentation:
Operator
Ladies and gentlemen, Good day and welcome TO Endurance Technologies Limited Q3 and 9 months FY25 results Conference Call home hosted by Access Capital. 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nishit Jalan from Axis Capital. Thank you. And over to you.
Nishit Jalan — Analyst
Thank you so much. Good morning everyone. Welcome to Q3 FY ’25 Post Result Conference call of Endurance Technologies. We are pleased to host the entire management team. Senior management team of Endurance we have with us today Mr. Anurang Jain, Managing Director; Mr. Massimo Venuti, Director and CEO Endurance Overseas; Mr. Rajendra Abhange, Director and COO; Mr. Raja Gopal Sastry, Group CFO; and Mr. Raj Mundra, Treasurer and Investor Relations. I’ll now hand over to Mr. Anurang Jain for the opening remarks post which we can start the Q and A over to you Mr. Jain.
Anurang Jain — Managing Director
Thanks a lot. So good morning to everyone as we look at the broader economic landscape. GDP growth for FY25 is expected at 6.4% which is a downturn from last year’s 8.2% with quarter two marking a seven quarter low at 5.4%. However, the Index of Industrial Production grew to 5.2% in November signaling manufacturing recovery. Further, the measures taken in the Union budget and in the RBI MPC meeting would leave higher disposable income for discretionary consumption and this offers us a hopeful outlook for our industry in India. In quarter three of this financial year, as per the CM data, the two wheeler industry sales grew by 7% compared to quarter three of the previous financial year. Scooters grew by approximately 13.3% and motorcycles grew by 4.6%. The passenger vehicle segment grew by 6.6% while commercial vehicles witnessed a 2.3% growth while three wheelers grew a modest 0.7% as compared to quarter three of the previous year. Against this macro environment and the industry performance, I would like to explain various strategic actions in Endurance and their potential impacts on the company’s future performance. First, I would like to touch upon our acquisition of Stefele in Germany. You must have read the announcement and hence I will not go into the details. This is an important acquisition for us. The company is highly profitable, has good customer presence and is vertically integrated as they manufacture also their own machines. This along with our existing presence in Germany holds significant promise in terms of not only revenues and profitability but also creating a strong presence with our German OEM customers leading to higher business and opportunities. The Stephanie acquisition and the Engineer Automation company which was done earlier this year brings on board in house machine building and automation expertise which can also be used in our Indian operations. Mr. Massimo Venuti and I will be happy to take questions from all of you on this topic. Having spoken about Stephanie and before we go deeper into some of the highlights, I would like to touch upon certain key topics which impact our business continuing on Europe despite the difficult market where the year to date new car sales have dropped by 0.4% compared to the same period of last year. Our subsidiaries grew their revenues by 16.1% and EBITDA by 22.1%. This is the effect of the astute management of a net positive financial position. In spite of investing substantially on new business wins, the OEM customers in Europe trust our companies in Europe and are considering us for various new business. These business wins which gave us a growth of 21.8% in revenue and the growth of 10 27.4% in EBITDA in quarter three financial year 25 versus quarter three FY24 are executed with a very robust control on cost and cash. We note with pride that the European operations are managing the acquisition of Stepele largely with internal approvals and will achieve early payback of the same. I will also have to explain and give you a status update of our important customer ktm. As you would be aware, certain entities of KTM have filed for financial restructuring and the progress so far is very smooth ahead of the court hearing on 25th of February of this month. We have clear indications that KTM will soon start operations in second half of March and we have started to get schedules. We are positive about the outcome which is evidenced by our growing sales to the KTM entities in Austria and China. Our sales to KTM India are expected to grow close to rupees 120 crores in FY26 based on schedules which we have got. We will also be starting sales of braking systems to KTM in India and overseas in the second half of the next financial year which is FY26. As KTM has often given us an opening for our advanced technology products, we also see opportunities for expansion of these advanced technology products to our other OEM clients. The major dimension of our business is our strong business partnership with Bajaj. While we are growing from strength to strength with all our OEM customers, our sales to Bajaj is always keeping pace with the quantity and quality of revenue earned from financial year 22 to financial year which is expected of this financial year. Our sales of Bajaj have been growing at a robust compounded annual growth rate of 10.8% in spite of the high base and the content per vehicle. Whereas sales to our other OEM customers have grown at a CAGR rate of 13% even in the recent quarters. If we remove the effect of commodity price changes, our sales to Bajaj have been growing every quarter in spite of the vagaries of the external demand. The influence of our Bajaj partnership is very positively impacting our inroads into other OEM customers where we have been securing orders in all our product verticals. All the OEMs are introducing high quality models into the market ranging from the premium high capacity motorcycles to budget friendly models with drivetrains across various options of petrol, CNG and electric motors. We are happy to know that Endurance is figuring as a key partner in many such new offerings and we are in various stages of winning orders and nominations with some orders already won. These are the precursors of the detail which I will now explain to you. These will clearly indicate our approach which is towards keeping our growth continuing in various markets and demand situations. Now let me update you on significant expansion projects. We are making excellent progress at our Oryx Chendra four wheeler casting plant. The plant infrastructure is set to be ready by the end of February 2025 with the SOP which is planned for June 2025. This facility will be a landmark in the Indian die casting industry being a first green building with zero waste to landfill. This plant will use 1100-2500 ton fully automated die casting machines with advanced machining and finishing equipment. The state of the art facility underscores our commitment to sustainability and innovation. As we have discussed in our previous calls for this plant, we have won business from two large global customers. We have won a machine casting order from Dalio with peak annual sales of Rupees 730 million as a localized and E axial for a Mahindra EV. At Onyx Chandra we have introduced India’s first dielectric powder coating service for electric vehicle platforms. The Chendra facility gives us an edge in tapping high value opportunities in the EV segment. The other order is for a peak sales of rupees 1.5 billion or export to a global renowned OEM with strong presence in the Premium segment and the EV segment. We will discuss more details once we have the clearance to do so. Our Orec Bitkin two Wheel Alloy Wheel Project two is progressing as per schedule and we are excited about this as it widens our OEM customer base for two wheeler alloy wheels as we capitalize upon the growing demand of two wheeler alloy wheels in India. Speaking about a new future Ready R and D facility which is for two wheeler, three wheeler and four wheeler suspension which we call G45 based on its address. We are on track to start this by March, April of this year. The existing R and D space will then be used for expanding our suspension manufacturing lines, ensuring we continue to meet the growing demand and help in profitable growth of our suspension business. The new R and D facility will be a game changer with a testing facility that is four times larger than the existing one, an office space three times the size for a planned capacity of 220 subject matter experts and R and D engineers which is three times our existing team size. This expansion aims to leverage the fast growing automotive market by enhancing our OEM customer trust, share of business and establishing our leadership in suspension technology. There will be advanced labs for innovation, Electronics benchmarking, Robot Data acquisition, Noise, vibration and hardness labs, Ride and Handling, Metallurgy and fmea, ensuring that we can offer designs that not only meet but they exceed the global specifications. It will serve as a one stop solution for promoting homegrown future ready suspension technologies, focusing on affordable innovation and value engineering. By internalizing advanced vehicle level suspension R and D and validations currently done in House by OEMs. It helps us to co create and engineer Win Win solutions, solidifying our role as a trusted technology partner to our OEM customers. Now I would like to focus on our product segments. Please note that the business value from new orders that I would disclose without including orders from Bajaj Auto starting with suspension. I just spoke about the new G45 suspension R&D facility in FY25. So far we have orders to the tune of Rupees 14,30 million of peak annual sales. These are from various OEM customers and for their various platforms. These wins signify our increasing expansion within each OEM and augurs well for the increase in our content per vehicle. Needless to say, a zealous perseverance towards quality standards, quick turnaround of new products, value engineering exercises and strong governance standards are aiding this. Significant in the suspension business is our continued expansion of the inverted front fork business with wins of the TBS Apache model, Giro 250cc plus models amongst others. We’ve also won orders for E scooters on braking. This is our most exciting segment and we continue to enhance capabilities. We have won rupees 17,10 million of new orders till date in FY25 from multiple OEMs. With these inroads we would now be supplying to every prominent two wheeler OPM in the country Just reminding you that our capacities at present are 6 million two wheeler braking systems, 8 million two wheeler brake discs, 1.5 million three wheeler tandem master cylinders, 1 million three wheeler drum brake assemblies and 650,000 two wheeler ABSs or the anti lock braking systems. Key capability and backward integration projects will also aid in lowering our cost and better serviceability are also being implemented. Our range covers vehicles right from 100cc all the way till 800cc. We have also kick started a project to manufacture the four wheeler brakes in transmission segment. In spite of increasing electrification we continue to win new orders for our clutch assemblies. A couple of significant new wins are the clutches from Hero Motorpop and Royal Enfield with which will help us to increase our annual sales of 1 million more clutch assemblies and increase sales value by more than rupees thousand million in the next financial year. We continue to invest on the improvement in quality and performance of our clutch assemblies. We now have orders for our Adler Technology Assistant slip clutches. As far as the drive shop transmission business is concerned, we have won rupees 450 million of new orders in this year from two key OEM customers. Despite this being a new vertical with no two wheeler end use, we soon expect to hit an annual revenue run rate of close to Rs 1000 million including orders from Bajaj Auto. We expect to start SOP also up a 4 in a drive shaft in the next financial year. In aluminium castings business we continue to win orders and castings. These orders are across two wheeler, four wheeler and non automotive business and also for the IC electric vehicle business. I have already spoken earlier about Orexchendra orders which we have won on the embedded electronics. We are accelerating the development of innovative mid and high voltage BMS platforms which is battery management system platforms that cater to a broader range of market segments and geographies. Our XPSafe and the HP safe products which are under development incorporate functional safety measures and draw on our existing XP platform. Know how The XT Safe BMS platform addresses applicative segments ranging from cars, buses and trucks to grid scale storage applications while the HD Safe focuses on high performance two wheeler, three wheeler and four wheelers as well as smaller backup and UPS systems. These solutions are in collaboration with semiconductor partners to offer cost effective and reliable platforms for diverse market requirements and regions. Beyond the battery management system, we are in advanced space for a suite of motor control. And Power Electronic Solutions. The expansion of our product lineup opens up opportunities with new OEM clients in both established and emerging markets while simultaneously strengthening our business growth with existing partners. In the recent past we have seen a slew of announcements by the two Wheeler OEMs including introducing the electric vehicle models. We have always maintained that our product range except clutch assemblies, our EV agnostic which is almost 96% of our range and used in both EV and internal combustion engine models. I will briefly touch upon a recent sales and order wins Our sales to electric vehicles in quarter three FY25 was rupees 722 million which is about 3.5% of our sales. This is close to double our quarter one FY25 sales. We have an order for electric vehicles from various OEM customers amounting to rupees 9631 million since FY22. Now this is after considering the removal of rupees 15. 80 million of business wins from 5 electric vehicle OEMs who we don’t feel due to the financial issues can give us this business. So rupees 9631 million is the net figure. This is across all our products with aluminium castings and brakes which are leading with rupees 4273 million and rupees 3524 million business 01 respectively. Suspensions orders stand at rupees 1305 million and transmissions at rupees 529 million. We also state here that given the volatility of the markets particularly for electric vehicles and the status of some the OEM clients, we further tone down these numbers down for our internal business plans. We also actively quoting and pursuing the Request for Quotations for an annual sale value of Rupees 32 billion from various OEM customers other than Bajaj and across all our product segments. This also includes a significant percentage for electric four wheeler customers. Our subsidiary Maxwell has also received orders to the extent of rupees 2.5 billion. This value is after removing business from customers who have seen headwinds such as sharp fall in market share. You are aware that we have won large value orders in electric vehicle and hybrid space also at our European plants. Overall we are well poised to make the best the shift in powertrains from IC to electric vehicles. On the four wheeler front, Endurance is strategically working to capitalize on both the ICE and the EV markets with a focus on niche and proprietary products. One of our entry strategies is to enter into technical assisted agreements with global players where we leverage expertise to enhance our offerings. We are happy to state that one such technical asset agreement for four wheeler suspension has been signed last month with a leading Korean entity. This technical assisted agreement will give Endurance Technologies the complete capabilities to manufacture and sell shock absorbers and struts to a large range of four wheelers. We are pursuing opportunities to enter into joint ventures with existing global players and thus combine our strengths on technology, cost, competitiveness and the growing Indian market. These persuas are at various stages of maturity and we will announce the same as and when they are finalized. We are also tapping our own R and D capabilities to pioneer new solutions. To this end, we have and are modernizing and enhancing our R and D facilities at G45 to cater to the four window requirements. Also, we have added to our skill inventory and many subject matter experts to our roles in the field of our Target 4 Wheeler products. Our discussions with global leaders are advancing well and we are optimistic about concluding business awards for three to four products within the next six months. This aligns with our strategy to increase the share of four wheeler as a segment in our total income. At present our focus is on four wheeler suspension, four wheeler brakes, four wheeler drive shafts, four wheeler alloy wheels. While we continue to increase our four wheeler casting and aluminum forging business in the four wheeler domain, we are implementing several key strategies to elevate our presence in the aftermarket business. We have just embarked on a special project which will span over the next two years to multiply our aftermarket sales. This is being done in collaboration with one of the top global consultancy firms. The approach is to operate all levers, namely the market spread, new product introductions, merchandising exports and four wheeler products. To achieve the targeted growth. We are revamping our distributor policy to ensure it aligns with our growth objectives and fosters strong partnerships. Our focus on retailers and mechanics is more targeted now with a focused milestone based incentive plan while addressing critical pain points like inventory management to improve the service levels and satisfaction. We’re actively identifying and planning to induce new value add products which are trading products areas for both two and four wheelers expanding our product portfolio to meet evolving market demands. We are also targeting and aiming to increase our market share in high potential regions both in India and our export countries by leveraging our understanding of the local market dynamics. Our efforts to improve product quality and market share and value add products within our existing geographies are yielding good results reinforcing our commitment to excellence and customer satisfaction. I would like to touch upon order wins till date of this financial year. This is excluding Bajaj Auto. This year we have won a total of rupees 7806 million of business including the business win switch law for our Oryx Shieldra plant for four wheeler castings ratably pursuing like mentioned earlier business worth Rupees 3.2 billion which are in the form of request for quotes in our hand. Out of the rupees 7,806 million business won this year our aluminium casting business led from the front and won rupees 3,779 million of new orders till date this year. This was from various customers including Tata Motors, Valeo, Ather, HMSI, Piaget and others. On suspension we have won Rs. 1413 million of new orders. The OEM customers being Zero Motor Corp, HMSI, Kawasaki and TBS. I would specifically like to mention that 50% of this rupees 7806 million business one till date this year is for electric vehicles. Also 40% of the rupees 7806 million business which has been won is for four wheelers. Our brakes business won new orders of rupees 17, 10 million which includes orders from Hero Motor Corp, Honda Motorcycle and Scooters India, Mahindra, Royal Enfield, TBS and others on the transmission clutch assemblies. Our order wins amount to Rs. 524 million in this financial year. We have also won substantial orders for our drive shops worth Rs. 450 million mainly from Mahindra. It would be worth mentioning that we are moving towards supplying all our product segments to all OEMs. Further close to Rs. 14 billion of new orders won in the past. Since FY21 are expected to have their SOP by this financial year and around rupees a further rupees 10 billion are expected to have SOP in the next financial year. At Endurance, our focus on people and work culture is absolutely important to our success. We have been actively right sizing our organization pyramid to ensure agility and accountability on talent acquisition. We are focusing on strategic workforce planning at all levels with a focus on gender diversity which is at 20% of our total hiring. Our winning the Women program is focused on empowering our women employees with workshops on self care, self awareness and financial wellness. Our potential management framework is robust including development centers by top consultants, career discussions and mentoring high potential employees for leadership roles. We also launched the Suction program which is a capability building program for reskilling and upskilling program to prepare our workforce for facing future challenges. We also have a wellness and happiness programs by way of health talks, Yoga and Mindfulness diversity peaks to help promote physical, mental and emotional well being. On the ESG front, we are actively working on a net zero target in collaboration with CII aligned with SBTI guidelines. I’m happy to say that we have achieved a carbon neutral percentage of 43% and are well poised to achieve a target of achieving a carbon unit percentage of more than 50% by FY30. The lifecycle assessment for five products is in progress conducted by TUB Sud. Validation of six zero waste to landfill sites are underway. Through an external agency, we have increased sourcing of captive solar power from the SVB that has been formed with Tata power. From Since October 2024, the capacity at this SVB has doubled to 25 megawatt. We’ve achieved significant improvement in loading thermal and electric energy consumption along with achieving 91% and 90% hazardous waste recycling. Through our CSR arm, which is the Save of Trust, we are committed to fostering sustainable development and mutual growth with our stakeholders with a special focus on education, livelihood generation, health and sanitation and environment. We have transformed 51 schools with solar energy digital literacy through our World on Wheels program touching over 17,500 lives. Our efforts have led to higher attendance and better education outcomes with a focus on hygiene and health. We’ve empowered over 3,500 farmers with sustainable agriculture training and supported hundreds of youth through our Eco Vocational Training center at Aurangabad by achieving over 75% employment for nearly 1800 youth. Our health program has reached 42 villages treating over 15,000 people and we have built over 2,300 toilets to improve sanitation. On the environment front, we have enhanced water storage capacities to canal deepening and created lush biodiverse forests across 38 acres planting over 300,000 trees. I would also like to mention some of our special projects. Our Balwali School Project in Aurangabad in nurturing the young minds of underprivileged children, while our Kajapuri Museum project will celebrate the art of handmade paper. The Prajani Revival Project is a tribute to ancient silk weaving offering new opportunities for beavers. On the awards front, I’m happy to tell you that our IPR team has won the CII Intellectual Property Award in 2024. Our two brave plants have secured Platinum and Gold quality awards at the recently held Bajaj Auto Meet and recently on the 11th of this month our company won the Innovation award at the Mahindra meet. I will now talk about our European operations. The story there has always been one of capable business leaders, intelligent investments and strong balance sheet management. We achieved growth in sales and also in profits in spite of flattish market in Europe in quarter three. In this quarter new orders to the tune of 12.4 million euros were won. This included large orders from Volkswagen and BMW both in the hybrid segment. As mentioned earlier, Stephani acquisition will give us up to 80 million euro in sales and 15 to 16 million euro of EBITDA. This gives us significant strategic advantage when we acquire a profitable company like Stephanie and that we get access to a larger OEM customer base. Also, the key skills and capabilities of Sepelli will give us significant synergies and has major growth opportunities for us in our German business. The German region experienced inflationary pressures due to high energy cost which the management is finding mitigation actions for now. Coming to financials, the quarterly information has been uploaded at the stock exchanges last evening along with our presentation explaining the numbers. I will however highlight some key numbers. During this quarter the company performed well and turned in revenues of rupees 21.9 billion and rupees 28.8 billion. For the standalone company and the consolidated company, this translates to a year on year growth of 9.2% and 11.3% respectively. The company earned a profit after tax of rupees 1.57 billion and rupees 1.84 billion. For the stand alone and consolidated company, this is a growth of 18.5% and 21.1% respectively. This expansion of margin is achieved through lower material costs in India and lower other costs in Europe. It is important to note that our European companies have defied many odds to post an impressive year on year growth or 21.2% in quarter three revenues and a growth of 26.7% in quarter three EBITDA. I would like to also mention specifically that our consolidated earnings per share has more than doubled from our IPO year which was FY17 or rupees 23.48 earnings per share to rupees 48.38 earnings per share in FY24. Further, for the trailing twelve months, the earnings per share is at 56.97. With these opening remarks now, I would like to invite questions from all of you. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one 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. We’ll take our first question from the line of Aditya Jhawar from Investec. Please go ahead.
Aditya Jhawar
Yes, thanks for the opportunity and thanks for the elaborate opening comment. So my first question is on the suspension. So congratulations on the big breakthrough on suspension. Can you just talk a little bit more about it in terms of the tech sieup that we have done. The outcome of this can be used for other OEMs as well. And if you can give some timeline, order size and capex required for this project.
Anurang Jain
Yes, I think I will request Mr. Rajendra Abhange, our director and CEO to speak on this topic. I think he will give a better view as he is in touch with all the customers. So Mr. Abhange, can you just throw some light on the four wheeler business of suspension with this new technology agreement we have with the Korean company?
Rajendra Abhange
Yes. So Aditya, first of all thank you for asking this very relevant question and I think the investor community has always been very curious that what do we do in the four wheeler proprietary product line where our presence was there so far. So this breakthrough of getting into suspension has happened very recently with a global company who is having diverse interest other than suspension as well. But they are market leaders for one of the largest car manufacturer globally and we have been able to make a deal with them in terms of providing end to end product technology. You see the suspension for four wheeler is a very complex product. The entire vehicle stands on this particular part and it is, it is supposed to do many things other than absorbing shocks. Okay. It’s also supposed to do the vehicle dynamics. And this high end product technology is only possible if we have a very formidable partner. And we found one company in Korea. And this news is very exciting for most of the OEMs. Wherever we have gone they have been very happy about it. The space is. Suspension space in India is very less crowded. There are not many players. Hardly one or two players are there and that too OEMs are looking for very formidable companies who can offer products that are affordable and they are also world class. So the current status is that the license agreement has been signed successfully and OEMs are offering us the tech review discussion. Our team is very busy in finalizing the product configuration and if all goes well with them in terms of commercial and techno commercial side, we are going to set up a greenfield facility very soon which will be probably India’s finest shock absorber company. That much I can assure to the investor community. Thank you.
Aditya Jhawar
Yeah, so just, you know. So as of now we are in discussion stage with OEM for orders and the greenfield facility. You know any capex that you’d like to talk about and where would it come? Would it be Chennai or any other part?
Rajendra Abhange
So Mr. Jain probably can answer the facility in the event you would like to tell.
Anurang Jain
See, we have finalized the location but I think I may talk about that in the next call. We have finalized it. We have the land also for it and there are certain things ongoing. You know, as we have not told the customers yet though we. Okay, we have maybe mentioned it once we finalize the customer the location then it’s the correct thing to tell.
Aditya Jhawar
The second question is on Maxwell. So the performance has been quite encouraging both on a growth and profitability perspective. So if you can throw some light on what kind of customer base currently we have in any new addition in customers that we have seen recently and what is the plan of ramp up of Maxwell business in the next one to two years.
Anurang Jain
I will request Mr. Raja Sastry to throw light on this.
R.S. Raja Gopal Sastry
Aditya. We have been focusing very closely into Maxwell’s operations and what the most important thing we have been doing is the R and D function of Maxwell has a significant level of product in their pipeline which cater to a wide range of applications. And as you see, right, what we now see is that there is an improvement in the results of the company. We are focusing on projecting this product range which go for multiple customer configurations and which have enhanced safety in them. Right now we have only one or two customers to whom we are supplying on a mass production basis. But the quotations to a wide range of customers who produce three wheelers, who produce two wheelers is in its various stages of becoming commercial businesses. That along with the motor control unit which we spoke about earlier and some ventures which are allied to the battery management systems are also in progress right now. And we do see good interest from some customers on these product lines and we should see growth going forward. And as and when they become mature they will be very happy to make that announcement.
Aditya Jhawar
Yeah, that’s quite helpful. My final question is from Massimo. You know, Europe performance was pretty solid. Very, very encouraging to see the print. If you can talk about what, you know, any new incremental orders that came for execution in this quarter, or if you can just explain the reason of such a strong performance in Q3, and if you can particularly talk about the outlook for our European business and overall industry for the, you know, medium term, that would be good.
Massimo Venuti
Okay, so the situation in Europe in terms of the market is not very good. As you know, the demand is very weak. In nine months the volume has been stable compared to the previous financial year. But let me say as Endurance, we are in a different position thanks to the acquisition of the last five years. Please consider that we acquired 244 million of euro. We invested 160 million of euro in the last five years. And so the future from my point of view is absolutely positive. I’m optimistic for the next quarter. We grew double digit in the past three quarter and the expectation for the future is more or less the same. For sure, the acquisition of Seferla can enforce our position with our customer because it’s absolutely strategic. And let me say, I want to underline that this acquisition is part of the strategy started during the COVID period as in Geni acquisition. It’s not a decision of the last two months. And let me say that the process of acquisition is not finished. Every month, starting from 2022, with our colleague in India, with Rhea Jane, we have had several meetings to discuss acquisition process, to reinforce our product and customer portfolio. And in parallel every month with Rohan Jane, we have several meetings now also for sure with Ingenia to share our expertise with our Indian plant and to quote, profitable new business for Europe and also for India. We don’t want to lose opportunity to grow. This is the reality. And let me say, you will see in our new plant in India for automotive and automotive component, we are installing high level of technology and automation, state-of-the-art technology. And this is due to the acquisition that we have done in the last five years in Europe. And I repeat, this is part of the strategy that started during the COVID period. This is the only reason why Endurance in this moment is performing very well compared to the previous year. Please, I want to underline that we closed the previous quarter with the 21% of increase of turnover, 27% of EBITDA and 17.5% of net result. And these are results that possible only because we acquired a lot of business in different segments. When we acquired five years ago. Seven years ago, business in the electric. Everybody told me you are crazy. But now on top of existing product ranging in the internal combustion engine. We are performing very well with the high level profitability and with a level of technologies that is not reachable for everybody because you have to spend a lot of money. Please. I underline 160 million of euro of investment in the last five years. I’m not seeing it. So let me say I’m absolutely optimistic for the future months and for the future.
Aditya Jhawar
That’s very good to hear. I’ll fall back in queue. All the best.
Anurang Jain
Thank you.
Operator
Thank you. We’ll take our next question from the line of Jinesh Gandhi from Ambit Capital. Please go ahead.
Jinesh Gandhi
Yeah, hi sir, my question pertains to firstly on the formula suspension agreement which we have done. So there would be anything customer in form of Korean OEMs, just any inputs on whether that tanker customer is currently having single source of supplies for suspensions or. And we’ll be getting a second source supplier or how should one think about that?
Anurang Jain
See, we will definitely be a second source supplier unless there are some new models looking at, you know, how we do in performance in future. But right now definitely the customers we enter in India will be as a second source.
Jinesh Gandhi
Okay, so they currently only have a single.
Anurang Jain
Yes, yes, yes.
Jinesh Gandhi
Okay. And secondly, you also talked about the formula braking business. So any, any, any inputs on who’s the technology partner and how should one think about the ramp up in that segment as well? Because that again is a very large opportunity.
Anurang Jain
So I think this, maybe as we go along we will share more and more data but we will definitely, I think start the BRICS business. Maybe our target is the last quarter, the next financial year but because it takes time, you know, for testing and development. But you know, but that is something which is already at an advanced stage and, and that’s, that’s going to happen for sure.
Jinesh Gandhi
And we have a technology partner here.
Operator
Sorry, Jinesh, your line is not very clear. Can you use your handset mode please?
Jinesh Gandhi
Sorry, I’m on handset mode only. But yeah, so, so is there any technology partner for foiler braking or. We have done it in house for the technology
Anurang Jain
For the high end braking systems will come from BWI who’s already our partner, as you know, for the two wither areas. So they’ll be the partner and we’ve already talked to them. So we are at a very advanced stage for that.
Operator
Jinesh, does that answer your question?
Jinesh Gandhi
Yeah, I’ll come back in queue. There is some issue with my line. Thanks.
Operator
Thank you. We’ll take our next question from the line of Shagun Beria from Anand Rathi. Please go ahead.
Shagun Beria
Hi, am I audible?
Anurang Jain
Yes, I can hear you.
Shagun Beria
Yeah. Thank you for the opportunity and congratulations on the good side of numbers. So, on the recent acquisition of Stoferle, can you just help us understand and elaborate more on what this acquisition brings to the current business in terms of products, technologies and customers? And also, how should one look at the revenue growth for this entity over medium term? And also the EBITDA impact profitability.
Anurang Jain
Okay, sure. So I will request Mr. Venuti to answer that question.
Massimo Venuti
Okay, so first of all, on 12th of December we signed this spa with the Stephane family. Now we are waiting the confirmation from the authority of antitrust in Europe. Because this is a strategic customer supplier for our customer. And so, as I told you before, as Endurance we reinforce our position in one of our major customer in our portfolio. And so we are waiting the answer from the authority. But I presume that within the end of this financial year, calendar year, we can reach the closing. The company is a strategic competitor of Endurance, was a strategic competitor of Endurance in the transmission component. And they have a high level of technology due to the fact that they produce the machine. And so it means that this is absolutely important for us because as you know, we invested a lot of money in the last period of time, starting from Greenfeed with new project. And now inside of our company we will have also the expertise to reuse the existing production capacity. This is absolutely strategic for us. In parallel with the acquisition of Ingenia that can improve the automation in the process. The company has, as Mr. Jain told you, a total turnover of 80 million of euro. And in EBITDA that is more or less 18, 20%, 15, 16 million of euro EBITDA. The company was absolutely cash free and the acquisition will reinforce our position in Germany. That is becoming a market very difficult because you can be competitive only with the high level of volume. And the portfolio. The product portfolio of Soeferle is very similar to the existing portfolio of Endurance. It means that they are in 60% of their product range sole supplier and the rest 40%. They were competitive of us. And so it means that we reinforce the product portfolio and we will increase our sole supply chain with our customer. We will become sole supplier for 80% of our product range in endurance. This was the strategy and this was the reason why we decided, as I told you three years ago, to focus in the potential acquisition of the company. For sure. Now the moment is the correct moment, the right moment also because the family Stefele understood very well that in this world the only possibility to survive is to make synergy with strong partners. And they are very happy. Because the feeling with the team in Germany, in Massenbauer and in Lauzeim, the new plant is absolutely positive.
Shagun Beria
Okay, thank you, that’s helpful. My next question is on the improvement of the gross margins quarter on quarter despite lower state incentives. So you had mentioned earlier that rupees 80 million state intensives will be provided for H2. Will that be booked in quarter four?
Anurang Jain
Actually we couldn’t hear you clearly.
Shagun Beria
Hello. Yeah, am I audible now?
Anurang Jain
It’s better question. Continuing to Massimo on this margin getting added in Q4, right?
Shagun Beria
Yes. Yes. So basically the state incentives that you had mentioned earlier, the tune of rupees 80 million, would that be booked in Q4?
Rajendra Abhange
So we are at a stage where we have submitted our application. Our documentation is complete. We are waiting for the eligibility certificate from the government. And it will be subject to the receipt of eligibility certificate that we would book any amount in Q4. And I can only tell you that our applications are complete and we are at an advanced stage. But we have to wait.
Shagun Beria
Okay, got it.
Rajendra Abhange
Let you know once we get it. We let you know.
Shagun Beria
Okay, got it. My next question is about the TLA that you mentioned with the Korean player for four wheelers in suspension. So can you talk about this partnership as we didn’t have much presence in four wheeler suspension and which are the key customer wins that are expected from this TLA?
Anurang Jain
I would request Mr. Rajendra Abhange to speak on this. But you know the customers, we’re not allowed to mention the names yet because of the competition. So I cannot tell you the customers. But Mr. Abhange can tell you about the relationship, technology. I mean whatever he can say.
Rajendra Abhange
Yeah, okay, thank you. Once again I really appreciate the investor community’s interest in the suspension business which we are going to get into. This Korean partner has been hand picked and identified with lot of internal deliberations that who is the right company who can work with us in India and provide the niche and affordable technologies. You see India market in four wheeler is very cost competitive and we have to be mindful of the fact that we cannot bring something which is a rocket science, something that will not sell in the country. The average price of a car in India is close to $10,000 which is very, very low. But the demands of the products are extremely high. So in order to meet such diverse requirements we needed a partner who is actually going to help us in meet these requirements. There are already some formidable players. I think one player is definitely very strong in India. And as Mr. Jain has said, we will be the second source in most of the OEMs in India to start with. But let me tell you that for the new platforms we will get RFQS very soon where we will be the first supplier. And this company’s name is so formidable. The OEMs have absolutely no hesitation to work with endurance. Does it answer your question?
Shagun Beria
Yeah, yeah that does. Just my last question. Can you also talk about the new or large or to rupees 2.4 billion for E4 Wheeler applications from the likes of Valdeo and Yazaki?
Anurang Jain
Yeah, you are talking about our new project or Extendra which is starting in June 25th. So this plant, the orders which are, which we have got, it’s from Valeo and there is of course a very large customer whom we cannot name which we got a 1.25 billion rupee business. And as we talk, we are talking to others and as we get the orders we allow to speak about it, we will talk about it. On these investor calls we are at advanced stage with even other customers. So right now the business which has been won for the Orex chandra plant is 2200 million rupees. And this will be increasing, you know, because we have targets and of course our focus was to get into customers. We don’t have exports, try and improve our profit margins in the casting business. And we are very excited about this move because we are a very strong player. As you know, we are buying almost, look, we need almost one hundred and twenty thousand metric tons of aluminum. We are the largest in the country as far as aluminum diecasting concerned. Very strong engineering capabilities. Tool room. This Mahindra award we got for innovation which is two days ago, was on the hydraulic lifter which is used behind the tractor. And it used to be a cast iron part. I think it was a 30kg. We have lowered the weight to I think 4kg. 4 or 5kg. Huge saving. Getting new opportunities. Looking at the strengths, we are very excited to be in this new area. New customers, export customers, higher profit margins. I mean. So I can only tell you that this is a very high focus area for us. And see, luckily these orders, like I said, are mainly for EVs. You know, that is the exciting part, you know. And so we are in a very good space. And so you’ll see. So as we go along, every quarter we’ll share more and more with you.
Shagun Beria
Okay, thank you so much for answering my questions and this was helpful.
Operator
Thank you. We’ll take our next question from the line of Pramod Amthe from InCred Capital. Please go ahead.
Pramod Amthe
Yeah, hi. Thanks for taking my question. So in continuation of the same EXL discussion, wanted to understand because traditionally the conventional transmission used to be made by four wheeler companies in house. So this completely opens up a new opportunity for you because of ev. One second, what is the content you are supplying to the exl? Because what type of parts you have won and what is the scope of expanding this content within the exl? Because many the players are yet to localize EXL in India.
Anurang Jain
No, I would like to clarify. We are not going to supply the E axle die casting machine parts for the E axle to value. Who will supply the complete assembly to the Mahindra ev? So ours is still an aluminum casting business. Okay. It’s not an E axle business. And so just to clarify, we are not getting to E axles casting supply to E axles to value, which is the supply to Mahindra for the E axles.
Pramod Amthe
Yeah, but at least earlier all these things to be in house. So people used to do it, even those castings, you know. So hence I thought. But is there a scope for you to move up considering the aluminum content is higher?
Anurang Jain
There’s a tremendous scope. You know, all the customers we are getting into, the scope is just tremendous. You can’t imagine. And metals. The best part about metals is to be in a metal industry. I’d mentioned in the past calls also whether it’s ev, it’s ICS hybrid, there’s a huge requirement because aluminum is a lightweighting material and why we went into more of export oriented and these kind of models is because we want to increase our margins in the aluminium casting business. In fact, our focus is if we can be higher than proprietary business. I’ll be very honest about it.
Pramod Amthe
Okay. Further to this four wheeler suspension, considering that many of the four wheeler OEMs are very closely working with their own country based partners and India is more ruled by Japanese than the Koreans. So does it restrict your market presence the suspension which we’ll be addressing because of the partner?
Anurang Jain
I don’t think so. I don’t think so. I mean we are very optimistic. We are in touch with many companies including also Japanese. So we make all efforts to see that we can make inroads based on our cost competitive technology products and the performance which we bridge, which we will offer, you know. So we will do our best to see that the Korean entity doesn’t come in the way of companies.
Pramod Amthe
Sure. Thanks.
Operator
Thank you. We’ll take our next question from the line of Jinesh Gandhi from Ambit Capital. Please go ahead.
Jinesh Gandhi
Yeah, hi sir. Am I audible?
Operator
Not very clear, Jinesh. Hello, Jinesh.
Jinesh Gandhi
Yeah, yeah. Is it better now?
Operator
Yes, please go ahead.
Jinesh Gandhi
Yeah. Mr. Jain, my question was regarding ABS for two wheelers. Can you talk about the progress with respect to how is acceptance of our product with customers beyond Bajaj and Ari and in the sense that where are we in terms of RFQs and testings and those stage.
Anurang Jain
See I will not give you the customer names.
Jinesh Gandhi
That’s fine.
Anurang Jain
Yeah. But you know I can tell you Bajaj and Royal Enfield have been our historic customers, you know and we are in touch with all the OEMs. But I can only tell you there are two other customers. We are in very at a quite an advanced stage. And that’s more for the channel, of course it’s there as well as signal channel. We want to launch a dual channel abs, you know, which will be. Which we hope to do. It’s not in this quarter, but in the next quarter. 26 quarter one.
Jinesh Gandhi
Got it, got it. And second, any debt which that company has. Sorry, Debt at Stofferil.
Anurang Jain
Yeah, so. So what is your question on Stephanie?
Jinesh Gandhi
Does it have any debt on its book?
Massimo Venuti
No, it’s got no. — as I told you before, the company is cash free. The agreement is to buy the company without cash and without debt. I told you, this is one of the most profitable company in the European market. We are seeing about, as I told you, 15, 16 million of EBITDA considering 80 million of Euro turnover for sure due to the fact that they do only machining. But as you know, machining for us is the added value of our process. And for in the future we will decide for the potential verticalization also with the high pressure vacancy component. But we will buy the company without financial debt.
Jinesh Gandhi
Got it? Great, sir. Thanks. And all the best.
Operator
Thank you, ladies and gentlemen. We’ll take that as the last question for today. I now hand the conference over to management for closing comments. Over to you, sir.
Anurang Jain
Yes. No, thank you very much. No further comments. I mentioned that in my opening remarks. So I want to thank everybody for their time on this call. Thank you.
Operator
Thank you on behalf of Access Capital. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.