Shriram Pistons & Rings Ltd Q3 2025 Earnings Call Transcript

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

Question: Chirag Jain - Emkay Global Financial Services Ltd - Analyst : Hi, good evening, sir, and thanks for the opportunity. Sir, just wanted to know in this quarter, the gap between our standalone and consol revenue growth has actually narrowed down to just about 2% compared to about 8% to 10% that we did in the first two quarters. So how do we see the EV power train and the plastic injection molding business shaping up over the next two, three years? If you can share some thoughts, that would be very useful.

Question: Chirag Jain - Emkay Global Financial Services Ltd - Analyst : Okay. And very specifically on the EV power train business, would you share some update with respect to the new plant? And how, let's say, the new order wins are shaping up over there?

Question: Chirag Jain - Emkay Global Financial Services Ltd - Analyst : Okay. If you can share some thoughts how much would be the revenue potential in the EV power train business that we are setting up in the current phase? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 03, 2025 / 12:15PM, SHIE.NS - Q3 2025 Shriram Pistons & Rings Ltd Earnings Call

Question: Chirag Jain - Emkay Global Financial Services Ltd - Analyst : Thank you so much. That's it from my side. I'll come back in the queue.

Question: Vaibhav Shah - DSP Mutual Fund - Analyst : Yeah, hi. Thank you. Congratulations, sir, on a decent set of numbers. My first question is generally from a medium-term perspective. We hear lightweighting as a key turn within the automotive space. And given that now, we have focused a lot in terms of plastic position in injection molding as a segment, could you talk about some of the products or offerings that you have in terms of substitution, which is happening from sedimentary to a plastic components? And how are you looking in terms of this segment? We have the back of the acquisition that (inaudible). Any sort of -- are there any potentials that you are looking combined that with these two businesses and from a medium-term perspective -- can you (inaudible)?

Question: Vaibhav Shah - DSP Mutual Fund - Analyst : Sure, sir. This is very helpful. Could you also talk about some specific details as of this precision injection model that we have in terms of overall market share that we have currently in the automotive offering set? What's the average?

Question: Vaibhav Shah - DSP Mutual Fund - Analyst : Sure, sir. And would you also be able to share some details in terms of average content value that we give with the share standard or a few (inaudible)? Like is it a material segment opportunity over next three to five years of the [GST] value of things that we can give to the (inaudible) in the year. Could it be substantially higher value offering that can grow faster over a number of whatever growth we are anticipating from this?

Question: Vaibhav Shah - DSP Mutual Fund - Analyst : Sure, sir. I appreciate that update on this division. My second question is regarding exports, and this is a little bit premature to ask, but as of at FY24, our North America exposure was somewhere around 12% to 15%. Has any of the customer sounded out any impact due to this type of segment issue which can come up? And would we be open to say investing into some manufacturing business from that job or do we continue to export to some newer? Any view on this update?

Question: Vaibhav Shah - DSP Mutual Fund - Analyst : Sure, sir. Thank you. I have a third and final question very quickly on our revenue by customer segment. So two parts to the question. Any outlook in terms of our non-automotive revenue share which was close to [300%] as by FY24? How should we think this contribution going up in the next one to two years? Given that now, we also have TGPEL, which is a lot of non-automotive exclusion again over here. So any perspective in terms of our new share contribution from non-auto? And second is, sir, I just want to understand from a pistons and Pistons & Rings perspective, the aftermarket share in this business is significantly higher, right? Close to 27% or 30%-odd percent of our revenue. Now, when I compare to other automotive products like suspension or other engine products, and aftermarket segment is not that very high. So could you give some perspective in terms of how the aftermarket is placed out over a year? Some insight into how this market is going? And I understand that profitability will be good in this aftermarket segment as well. So if the segment's contribution continues to go up, any view in terms of the margin that has the most scope of improvement going forward, sir? Thank you.

Question: Vaibhav Shah - DSP Mutual Fund - Analyst : Thank you, sir. And non-automotive sale of the (inaudible)?

Question: Vaibhav Shah - DSP Mutual Fund - Analyst : Sure, sir. Thank you so much. And just last, very quickly. One last question, if I can squeeze in. If I look at the overall the (inaudible) plant, if I remember exactly, it was supposed to be starting in Q4 of this financial year. Are we on track in terms of commissioning and starting? Or do we eventually we expect (inaudible) from that plant?

Question: Vaibhav Shah - DSP Mutual Fund - Analyst : Yes, sir. And CapEx number for this year and next year, if you can share? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 03, 2025 / 12:15PM, SHIE.NS - Q3 2025 Shriram Pistons & Rings Ltd Earnings Call

Question: Vaibhav Shah - DSP Mutual Fund - Analyst : Yes, sir. Thank you so much for the update. Wish you all the best.