Talbros Automotive Components Ltd (NSE: TALBROAUTO) Q4 2025 Earnings Call dated May. 27, 2025
Corporate Participants:
Unidentified Speaker
Anuj Talwar — Joint Managing Director
Navin Juneja — Director and Group Chief Financial Officer
Analysts:
Unidentified Participant
Vijay Pandey — Analyst
Dipen Shah — Analyst
Jyoti Singh — Analyst
Bhavya Shah — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Talbros Automotive Components Limited Q4FY25 earnings conference call. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. 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 0 on your Touchton phone.
Please note that this conference has been recorded. I now hand the conference over to Mr. Anuj Talwar, joint Managing Director. Thank you. And over to you, sir.
Anuj Talwar — Joint Managing Director
Yeah. Thank you so much and good afternoon everybody. A very warm welcome to our earnings call for FY25. On the call, I’m joined by Mr. Naveen, director on the board and group, CFO and SGA, our investigations advisers. The results and the presentation are uploaded on the stock Exchange and the company website. Let me begin with the industry and the economy overview. In FY25, the Indian automotive industry in the domestic market displayed a mixed performance with an overall volume growth of 6.5%. Only passenger vehicles grew at 4.9% while the two wheeler segment grew by 7.7%. YOY and the three wheeler segment registered a decent growth of 4.5%.
Commercial vehicles sales remain subdued with a degrowth of 0.2% YOY, reflecting the ongoing weakness in the industrial activity and delayed public and private capital expenditures. The tractor industry experienced a relatively flattish year with a degrowth of about 1% year on year, driven by economic uncertainties and unpredictable weather patterns. Electric vehicles sales saw a robust growth, obviously on a smaller base at about 17% year on year with approximately 1.97 million units. Test product launches for manufacturers have fueled this upward trajectory along with proactive government policies such as the PME Drive Scheme, the PME SEVA and the Electric Mobility Promotion Scheme.
Along with this, there is a major uptick in rural demand. In this year, two wheelers in the rural markets grew by 8.4%. Three wheelers grew at a higher 8.7% in the rural India and even passenger vehicles gained at almost 8% in the rural belt. Now coming to the company’s performance in FY25, Talbot demonstrated resilience and strategic discipline in the face of a challenging macroeconomic environment. Despite headwinds included subnet exports and reduction in government infra spending, especially in the commercial segment size, our financial performance remained stable. The revenue for the company grew by 7% year on year.
Due a strong focus on cost efficiency, operational discipline, productivity enhancements, we were able to deliver a 16% year on year improvement in EBITDA. Our EBITDA margin expanded by 130 basis points reaching 17.4% reflecting the company’s ability to extract data value from existing operations. Similarly, our TAC margins improved by 70 basis points to 11.2%. The fourth quarter of FY25 towed signs of modest growth with revenues increasing by 2% only to 206 crores. EBITDA margins improved to 18.9%, an extension of 180 basis points over the previous period indicating country momentum in our efficiency initiatives. Spat for the quarter grew by 17% reaching 27 crores, further validating the effectiveness of our strategic focus on profitability.
Our ability to secure new business has remained strong, reinforcing confidence in our products and capabilities. In FY25 we significantly built on our previous year’s momentum by adding orders total to 1475 crores. These orders were sourced from leading OEMs across both domestic and international markets, reflecting the continued trust and confidence placed in Talgo’s and its own ventures. While fluctuations in market demand continue to pose challenges across the industry, TSCN is committed to shifting from an acquisition focus of orders to efficient execution. The transition is crucial to translating our strong growth order pipeline into sustained revenue growth and long term profitability.
By strengthening execution capabilities and streamlining supply chain operations, we aim to maximize realization of these orders in the near to midterm. We’ve also received new orders from the heat shield segment of approximately 245 crores. The revenue from this segment has reached 51.6 crores with high margins reflecting the effectiveness of our strategic initiatives. The Gasket division accounted for approximately 53% of the company’s consolidated revenue. We’re also actively working on development of next generation heat shields to meet the market demands. Looking ahead, our focus remains on expanding our value added product portfolio within this division and we’re confident in sustaining the growth momentum.
The 14 division experienced a flat growth in FY25 primarily due to its significant dependence on exports to Europe. As you know, a big slowdown in the passenger mobility in Europe and we are predominantly a big supplier into these car OEMs into Europe. Also I want to add here that a lot of our products in the European market and the UK market have gotten delayed, so the revenues are expected to come in in half. H2 of last year will get postponed to maybe a few more quarters, but we’ve not lost any business but only a delay in the product launches where our products will be fitted.
Despite these headwinds, we deliver an EBITDA margin increase of 11% in EBITDA margins in the forging business line. In addition, even the US status uncertainty has played out in delay of a few businesses that had to get awarded from the US market. Our joint ventures delivered a very strong performance contributing consistently to both revenue and EBITDA. As a result, the group revenue reached 1261 CR in FY21. Our continued emphasis on operational efficiency within our JVS and led to margin improvements and strong financial performance. Going forward we are committed to expanding our customer base, gaining our market share in India as well as getting more and more global business.
The global automotive industry is undergoing a profound transformation, particularly with an accelerated shift towards electric vehicles. In anticipation of this change, Tagboost has made target investments in strategic alignments to expand its offering in the EV segment. In FY25 we successfully secured EV rating contracts from leading OEMs across both domestic and export markets. Our collaboration with joint venture partners and strength of our forging business gives us a competitive advantage in supplying critical EV components including lightweight ink, structural parts, high precision assemblies and next generation drive end solutions. These capabilities position us well to participate in the growth of the EV market both in India and global.
With a very healthy order book, a growing cutting in the EV segment and our unwavering focus on execution excellence, we are well positioned to drive sustained growth and stakeholder value and lead to the next phase of industry evolution. With this I pass on the phone to Mr. Dimaja who will take you through the financial performance of the company. Thank you.
Navin Juneja — Director and Group Chief Financial Officer
Thank you Anuj. Good afternoon and a warm welcome to all the participants. Let me begin with the financial overview. Total revenue for FY25 stood at 845 crores as the year 791 crore in FY24 which is a growth of 7% on by over basis and for Q4 of FY25 it stood at 211 crores as against 208 crores in Q4 of FY24 a relatively slightest growth of 2% on UIUI basis. EBITDA for FY25 stood at 147 crore as again 127 crore a growth of 16% on YUI basis. This highlights the company cost optimization measures which are being taking place in the company.
For Q4 of FY25 it stood at 40 crores. EBITDA stood at 40 crores as compared to 36 crore in the same period last year indicating a growth of 12% of yoy basis. EBITDA margin for FY25 stood at 17.4% as compared to 16.1% in the same period last year higher by 130 basis point and for Q4 of FY25 it stood at 18.9% which is increased from 17.1% last year higher by 180 basis points. CAT for FY25 stood at 94 crores as well as 83 crores in FY24 a growth of 14% on y basis. This is after removing the exception loss item.
Sorry exception item in FY24. For Q4 of FY25 MyPad stood at 27 crore as compared to the 3 crores last year a growth of 17% on yoy basis. Now coming to a division Y performance in the gas fee division in FY25 sales for gas feeders stood at 556 crores as against 55015 crore. In FY24 a growth of 8% on y basis and in Q4FY25 our gasket and we shield was 143 crores as against 133 crores in FY24 Q4FY24 a growth of 7%. EBITDA for FY25 stood at 96 crores with a growth of 18% as compared to the same period last year and in Q4FY25 this segment saw EBITDA of 27 crores as against 24 crores a growth of 13% on Y basis.
Now coming to the 14th division, revenue in FY25 was 290 crores as again 277 crores in FY24 which has remained flattish primarily because of export demand being little subdued in European market our major market for this division. In Q4 of FY25 this revenue stood at. The revenue of the division stood at 68 crores as well as 75 crores in Q4 of FY24. EBITDA of the 14 division stood at 52 crores in FY25 as against 47 crore in FY24. And it saw a growth of 11% in Q4. In of FY25 the EBITDA was 12 crores as compared to 13 crores on the same period last year.
Now coming to me T systems, revenue for FY25 stood at 285 crores as it is 260 crores. A growth of 10%. And for Q4FY25 it stood at 76 crores versus 71 crore in Q4FY24 reaching a growth of 8% on yoy basis. Now EBITDA for FY25 of Marydi was rupees 50 crores. A growth of 28% on yoy basis. And in Q4 of FY25, EBITDA stands at stood at rupees 14 crores as against 11 crores in Q4 of FY24. A growth of 28% on Y basis. Now coming to our large joint venture Talbo Margo Private Limited. Revenue for Talbo’s Margo business in FY25 stood at 130 crores which shown a growth of 6% on yoy basis.
And its repeatable revenue in Q4FY25 was 34 crores versus 31 crores in Q4FY24 reaching a growth of 10% on yoy basis. EBITDA stood at 17 crore in FY25 as against 9 crore in FY24. And for Q4FY25 it was 4.4 crores as compared to 2.7 crores in Q4 of FY24. A growth of 63%. The company is committed to delivering outstanding value to its customer by offering high quality products at competitive prices. It emphasizes excellence across all area operations and prioritize building strong collaboration relationship with stakeholders. This is all from our side and I would not like to open the floor to question and answer.
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 touch tone telephone. I repeat, anyone who wishes to ask a question may press star and one on their touch tone 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 is from the line of Vijay Pandey from Nuvama please proceed.
Vijay Pandey
Thank you for taking my question. Two questions. I wanted to check what will be our expo now Basically I wanted to understand the recent mandatory ackbit that is coming. So what will be. What is our expectation on how it will grow our segment? Because we are into gasket and heat so do we supply any kind of components here in this segment for the.
Anuj Talwar
Cabins, for the cabins for the trucks?
Vijay Pandey
Yes.
Navin Juneja
Yeah we have just started supplying to Tata Motors we have got the order of supplying heat shield in the business of the cabin of Tata Motors.
Vijay Pandey
Okay, okay, so can you just share what. What is the potential order book you are looking or what? How should we see the same?
Navin Juneja
So we have received RFQ only We are working on that. I can’t comment on the but with the amount and numbers Sorry we just started now and we are received the rfq we are expecting order very shortly and we’ll come back to you when the order comes and likewise we’ll approach other customers other Ashok Leyland and Mahindra also in this Volvo with which are our regular customers in this.
Vijay Pandey
Okay sir, thank you. Secondly sir, I wanted to check about our exports market so are you seeing any revival of sort in Europe and North America market? Especially in the European market Because we have heard the news that European market is doing better than what was expected partially because of higher nor day. If you could just comment about the export market both in Europe and how do you see?
Navin Juneja
Yep, basically first is European market. First of all why my order? Why I couldn’t do much better in last year Number one my in Mary my project was delayed by one year slant this order but delayed by one year because of the design change. Okay, now design being finalized, everything done. Now we have the commercial operation. The commercial building will start from the third quarter of this year so that is closed for us. Okay, it will show you in the third quarter onward you can see the performance now coming to a 4G division. Of course BMW schedule came down very heavily in the last six months because of excess inventory on one hand and because of the reduction in their order book.
Okay, but now I think that inventory problem is resolved. Now we are normal inventory and offtake has little bit improved by 5 to 10%. Okay. In that and regard other businesses we are doing in UK Jaguar, Land Rover it is of course sometime it goes up, come down and. But we are seeing a growth of minimum 10 to 15% in this business next year. And third business is my JCB which I’m talking big businesses. Okay, third is JCB JCB. Of course the last phase got developed in the last quarter and full impact you can see we can see a growth of 30 to 35% in this business in the next year.
So that is my position regarding major export businesses. You can see in the last quarter, in the full year if we see my export business has gone up to 27% on a overall basis it was last 24, it was 25%. Now it’s 27%. I hope that by the end of next year it should be around 29, 30%. Definitely.
Vijay Pandey
Just one more thing, sorry. On the domestic side, any update if you can give on the what, what is your expectation for employee?
Navin Juneja
So my expectation is 7 to 8%, not more than that. Because you know that how the people are, how the OEM talking. Maruti says they will remain flattish. Even Kameron is saying they are minus 1%. But we, and, but we anticipate that this year because of the new orders we are going to get from Indra, from Kia voters, from Ashok Land, my growth will be much, much better. In the domestic front it should be 8 to 9%. I’m targeting on that.
Vijay Pandey
And export around definitely double digit.
Navin Juneja
Yeah, yeah, 100%.
Vijay Pandey
Okay. And lastly just this is last one then Mar. So what is the order book and like what is the time period?
Navin Juneja
Yeah, yeah, yeah, yeah. All the book is we are this year they will start the slanted business of third quarter. From July they will be supplying part to the Maruti EV vehicle. They are single source in that. So which is now been. I think it is going to launch in June or July. The vehicle is going to launch. It is delayed by nine to 10 months. Not is going to launch. The supply is just I think under preparation they are going to supply the part. We foresee that next year this business should grow by minimum 35 to 40%.
Vijay Pandey
Third quarter of calendar year or third. Quarter of our fiscal calendar year, our financial year. Okay.
Navin Juneja
By October onwards this Maruti supply will start from July. June, July. I think so.
Vijay Pandey
Okay, thank you.
Navin Juneja
Thank you.
operator
Thank you. The next question is from the line of Deepen Shah from Sixth Sense Venture. Please proceed.
Dipen Shah
Yeah, thank you for the question. Thank you for the opportunity. I just had one question. There was some newspaper report recently that you know Motherson is going to acquire the Mareli business globally. Could you just give us some insight whether it is.
Navin Juneja
We can’t comment sir. We can’t comment but so it is anyway it’s not going to affect us anyway that I can.
Anuj Talwar
We can’t comment on this. Thank you.
Dipen Shah
Okay. Thank you so much.
operator
Thank you. The next question is from the line of Yashku Krecha from Equity Capital. Please proceed.
Unidentified Participant
Thank you so much for the opportunity. Sir, could you help me with the capacity utilization for each segment? So that is in the sense that what is the peak revenue that we can do from each of the segment from the current facility and what will it be after the commencement of the new facility?
Navin Juneja
Okay, just a minute. If I could. Let me give you the data for that capacity. Just a minute. Let me take off my sheet for that. Just a minute. Just a minute. Let me take all the paper. It is around 82% in gasket and in forging it is around in my photo shop it is over 80%. It is 95% in my machine shop in Marily it’s 75%. In Margot Robert it is. There are two divisions. Anti vibration and in anti vibration it is around 90%. In Evo other is my hoses it’s around again around 85%.
That is interested.
Unidentified Participant
Okay. And the peak revenue from the existing capacity and also the from the new.
Navin Juneja
Capacity some peak revenue I can say if I take the business wise in gasket I can do around around 575 to 580 easily. And in forging I can do around 20. By adding a little bit machining I can do around 325. Okay. In Marylli with the capex going on with Escapex is going on in this year immediate capacities. After that I will be ready for approximately 600 crore per annum. And Margo with extension little bit capacity we are adding that we should be around 175 plus.
Unidentified Participant
Okay, got it. And so what will be the EBITDA margin for the current fiscal? It will be around 16% only.
Navin Juneja
No, we expect now going forward the the current. Sorry. By EBITDA margin on if all businesses together should be around 16.75 to 17%. Because my joint ventures are giving us good margins. If you. Last year Marily improved its margin dramatically and EBITDA margin improved dramatically. Similarly in the case of Margot it also improved.
Unidentified Participant
Including the other income.
Navin Juneja
Everything. Yeah. In the same format. I’m talking both.
Unidentified Participant
Thank you so much, sir.
operator
Thank you. Before I take the next question, I would like to remind participants that you may press star and one to ask a question. The next question is from the line of Jyoti Singh from Ariyan Capital Markets Ltd. Please proceed.
Jyoti Singh
Yeah, thank you for the opportunity, sir. Just wanted to understand on the Tata Motors order side. So like I know still it is in the process but can you just explain how much content per vehicle we are targeting and like how much product on the like weight side we will going to deliver.
Navin Juneja
To Very frank. I’m not aware of that. I think the thing will be cleared in next two to three weeks and we are there in July. If you meet us there we can tell you the event more. I am not aware at this point. Okay.
Jyoti Singh
Okay fine sir. And also just wanted to understand on the CV side what are expectation for the upcoming quarter.
Navin Juneja
Is in the coming this quarter CV is not that bad by the way. Not that bad which we anticipated. I think it should be around the same. I think top line should be same as it was in fourth quarter. Around same.
Jyoti Singh
Okay. So without the segment we are expecting a good support to our top line.
Navin Juneja
We are expecting every all division will grow different. Definitely. But I. I’m hopeful that until whatever has happened happened last year because election etc etc it followed. I think all is over now. So of course people are now adjusted to whatever is happening. Except the UK and US and Europe duty etc they are. I don’t know what will happen to them. It will create with one month or so. I think that we should be able to grow on a consolidated basis minimum 15% next year definitely.
Jyoti Singh
Okay.
Navin Juneja
Should grow much better. Marily will grow much better. I think it should go to 35 to 40% and 14 should also go by 15% plus definitely. Okay.
Jyoti Singh
Thank you sir. And a lot of discussion on the Europe consolidation. So any visibility you are also seeing sir?
Navin Juneja
Not really. Not really. We are not that big players so I can’t comment on that. Okay.
Jyoti Singh
And so any impact because of US tariffs we are seeing or any view on.
Navin Juneja
Tata Motor EV my suspension goes there. Other EVs we are in Basically we are export. Basically we are. We got the export order from E. From UK Their EV is not yet finalized because of some bad. I think some component issue they are facing. That’s why they delayed the order. It’s a huge order for our group. It’s around 70 to 80 crore for order for our group. So we expect that the problem should be able to resolve the problem by the third quarter. And thereafter they said they will launch a vehicle. Let’s see.
Jyoti Singh
Look. I think our question was on the. Was on. Was on something else. What is it on on the US Tariffs?
Navin Juneja
Yeah.
Anuj Talwar
So US tariff I think it will only benefit India to be honest with you. But there is a little bit of. It’s like it’s still going on. Discussions are going on but it will help eventually in the long term. I feel with the whole China and the US taking a stand on each other I think it will definitely help us. And we’ve not really heard much from our customers there’s any panic is business as usual for the US UK May automotive really has no duty much so it carries on no problem for auto components.
Jyoti Singh
Okay, sure. Thank you so much.
operator
Thank you. Before I take the next question I would like to remind participants that you may press star N1 to ask a question. The next question is from the line of bhavya Shah from 3A Financial Services please.
Bhavya Shah
Good afternoon sir. So my question is what can you give me the number of capex we have done in this year and capex we are going to do in the next coming years?
Navin Juneja
Yeah, last year we did it on standard basis. We did it capex of around 45 crores.
Bhavya Shah
Okay.
Navin Juneja
And yeah and during the current year we will do a on standalone basis approximately capex around again 45 to 50 crore.
Bhavya Shah
Okay so. So by FY26 our entire capex offer of 110cr which you have mentioned in the PPT will be completed.
Navin Juneja
Yes.
Bhavya Shah
Oh okay. And my question is that you have mentioned the order book of TI and Hyundai of 13.5 cr hit shield of 14 corrupt. So is this or where we are in the like this order is completed or it will be completed in coming.
Navin Juneja
One no one day we are already supplying. Okay, we have bless we will. I think all is done. We are discussing commercial and I think the supply will start within a couple of months.
Bhavya Shah
Oh okay. And we can see that in FY24 our top 10 customers were Hero Motor Co. Honda Motorcycle and now they are not there. So what is the business at that side? Hero Motor Co. Honda.
Navin Juneja
So we we as you are aware we I think we sold our equity in our joint venture Nippon Nicholas Telros in 24 of January. So that is the reason that we are not there. There was major players in Hero, Honda and Hero. So that is the reason.
Bhavya Shah
Okay and my last question is. So we this year we have seen the top line growth of 6% only 7%. So are we intact to our FY27 target achievement?
Navin Juneja
So FY21 target we are talking about 2200 crore out of it. If we take out the LTL division it is around 2000 crore. We are quite hopeful that of course we will be delayed maybe because of the launches we have been delayed like Sentis and Jaguar, Land Rover etc. So we expect that the delay of six to nine months in achieving that order.
Bhavya Shah
Okay. Okay. Thank you so much, sir.
operator
Thank you. The next question is from the line of Ravish Shah from VRs Capital. Please proceed.
Unidentified Participant
Hi sir. Am I audible?
Navin Juneja
Yeah. Yes, sir. Yeah.
Unidentified Participant
So I have two questions. The first one on exports. So we are targeted to reach our export share to 35% which was 25% in FY23. So how is the global market conditions. Impacting this goal and when do we. Expect to realize our goal which we.
Navin Juneja
Had planned to very fair. But last year we did 27% in spite of all these global issues against 25 with the slanty sort of coming in. Its supplies going to come in picture from the end of year and the new orders we are expecting and new supply to JCB Etc. By 20s I think next year we have. I think from 27 we should fetch around 2030 and after that, which we should for after in FY27 I think we should be close to 33, 34 cases. Definitely.
Unidentified Participant
Understood, sir. Thank you. So my second question was that we had added on 2400 course. So what proportion is currently under execution and when can we expect to realize the revenues?
Navin Juneja
I think around. Around. Around 40 to 5. 45% already started. 60% remaining. I think again 30% will start in next year and balance will come after next year because of delay, delay, delay in the launches. That is all it is and nothing else. Auto intent is intact.
Unidentified Participant
Thank you so much.
Navin Juneja
Thank you.
operator
Thank you. As there are no further questions, I would now like to hand the conference over to the management for closing comments.
Anuj Talwar
Thank you so much for attending the conference today. I know last year was a bit of a tough year, but we’re pretty positive and hopeful that this year will be much better than last financial year. And we’ll continue to focus on growth and as well as margin expansion. Thank you. Thank you.
operator
On behalf of Tile Bruise Automotive Components Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your. Your lines.