Endurance Technologies Ltd (CN) Q1 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : So this is with regard to your new wins in EV. Even though in terms of order wins...

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : Sorry, can you hear me now?

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : So this, with regard to electric vehicle order wins. I wanted to -- even though in terms of order inflow side, it looks like almost 20% order inflows are coming from EVs. Wanted to know strategically what confidence or what ratios or you look at 2, 3 years down the line, as your sales mix, EV to form as a proportion of sales mix, 1. Second, also, can you give some color in terms of the profitability of EV order wins? Are they similar? Are they lower because you might be aggressively adding them?

Question: Pramod Amthe - Incred Research Services Private Limited - Analyst : Second question is with regard to the aluminum prices. Wanted to know the LME prices have been correcting for some time. Is there -- how to look at our costing versus LME trend. Why does it take such a lag for you one to get realized on the ground? Second, is there a way to hedge yourself, considering you are -- aluminum is a large proportion through the LME and how much transparent pricing in aluminum as compared to steel?

Question: Chetan Gindodia - AlfAccurate Advisors Pvt. Ltd - Analyst : Sir, firstly, with respect to our standalone revenue sequential growth, if I see our sequential growth is around 4% and the EV industry on a sequential basis grew by 7.5%. Even if I consider the effect of Bajaj auto -- motorcycle volumes not been doing so well, even excluding after that, there is no benefit of new order wins that I can see sequential revenue growth increasing. So why is that, and do you think this on a volume basis, we will be able to outperform 2-wheeler industry this year?

Question: Chetan Gindodia - AlfAccurate Advisors Pvt. Ltd - Analyst : Okay. Got it, sir. And sir, secondly, with respect to our shock absorber business, which is a major business for us. Our revenue growth in standalone business for shock absorber for FY '22 was 15%. Whereas if I see for our major competitor, it was upwards of 35%. So just wanted to understand, have we lost any market share in the shock-absorber business? And what is our market share trends in this segment?

Question: Chetan Gindodia - AlfAccurate Advisors Pvt. Ltd - Analyst : Okay. Okay. Got it. Actually, I got the number from our annual report, standalone segment wise revenue. So...

Question: Chetan Gindodia - AlfAccurate Advisors Pvt. Ltd - Analyst : No, for FY '22. Wanted to understand for FY '22?

Question: Chetan Gindodia - AlfAccurate Advisors Pvt. Ltd - Analyst : Okay. Got it. Sir, just last 2 questions. Firstly, can you give an update on European power cost situation? I can see that our margins on sequential basis have improved in the European business, and when do you see getting back to normalcy? And lastly, can you share the customer-wise revenue mix for this quarter or for FY '22, whichever is comfortable?