Release Date: August 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Pricol Ltd (BOM:540293) reported a healthy revenue growth of 45.57% from operations.
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The company achieved a double-digit growth despite a muted market environment, outperforming the industry average.
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The introduction of new products and strategic partnerships, such as the technology license agreement with Domino, are expected to drive future growth.
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The upcoming ABS regulation is anticipated to open significant growth opportunities for Pricol Ltd (BOM:540293) in the brake systems market.
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The company has successfully mitigated risks associated with Chinese imports by initiating backward integration and localization efforts.
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Pricol Ltd (BOM:540293) faces uncertainties due to the shortage of rare earth magnets, impacting the two-wheeler segment.
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Employee costs have increased to 12% of revenue, attributed to forward-looking recruitments for new projects.
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The company is experiencing margin fluctuations due to currency exchange rate volatility and import dependencies.
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There is uncertainty regarding the timeline for margin convergence between Pricol Ltd (BOM:540293) and its acquired entity, Pricol Precision Products.
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The geopolitical issues and potential US tariffs pose risks to future export strategies and market stability.
Q: Can you provide a breakdown of sales and EBITDA margin for Pricol Precision Products, and an update on employee expenses? A: We recorded a turnover of approximately 205 crores with an EBITDA margin of around 7% for Pricol Precision Products. Employee costs were about 12%, and we are making forward-looking recruitments for upcoming projects. (Respondent: Unidentified_5 and Unidentified_3)
Q: What is your view on the ABS regulation and its impact on growth? A: The ABS regulation, mandatory from January 2026, presents a significant growth opportunity. We have launched a disc brake system and expect production to start for a strategic customer by Q4 of this financial year. (Respondent: Unidentified_3)
Q: How do you see revenue and margin growth evolving in the coming quarters? A: Q1 was muted due to OEM vehicle sales and rare magnet shortages. We expect headwinds in Q2 but anticipate a stable revival from Q3. We aim to maintain margins around Q1 levels, despite uncertainties. (Respondent: Unidentified_3)
Q: Can you elaborate on the technology license agreement with Domino and its market potential? A: We have an exclusive agreement with Domino for control systems in the Indian and Southeast Asian markets. We expect to see revenue from this in 12 to 16 months. (Respondent: Unidentified_5)