Shriram Pistons & Rings Ltd Q4 2025 Earnings Call Transcript

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

Question: Geral Jang - MK Global - Analyst : Yeah, good afternoon, everyone, and congratulations on very strong performance, so I just wanted to your thoughts on a few things. Obviously last year we have grown, closer to about 9% in terms of standalone operations. How do we see this year in terms of, the growth, for the standalone business particularly? Considering the, industry environment which is still somewhat subdued, so that would be one, and second, in terms of standalone business itself, what could be the potential revenues that we could do, from the current infrastructure or facility and the profitability scale up that we can happen obviously last. Of years, particularly last year, has been subdued and yet you have been able to maintain a very strong margin profile. So I'm sure there could be a scope for operating leverage, which can play out as the, revenue growth, comes back, in line with let's say industry and probably your outperformance. So maybe some thoughts around that.

Question: Geral Jang - MK Global - Analyst : Understood and any specific numbers. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 10:30AM, SHIE.NS - Q4 2025 Shriram Pistons & Rings Ltd Earnings Call

Question: Geral Jang - MK Global - Analyst : Yeah, sure so just wanted, your thoughts on the subsidiaries as well. I think the MP business or the EV powertrain business, I think the new plant has already started, so some thoughts, in terms of how the business is ramping up, especially some order wins, over there, and also on the plastic business now with, two businesses that we have acquired, how do we see, that scale up happening over the next two - three years on these two businesses as well. .

Question: Geral Jang - MK Global - Analyst : Sure, thank you so much. I'll come back in the queue.

Question: Aman Sony - Invest Analytics Advisory LLP - Analyst : Am I Audible? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 10:30AM, SHIE.NS - Q4 2025 Shriram Pistons & Rings Ltd Earnings Call

Question: Aman Sony - Invest Analytics Advisory LLP - Analyst : I just want to know the current revenue contribution from electric vehicle segment, and can you please provide an update on its progress and there some light on the development in this area.

Question: Aman Sony - Invest Analytics Advisory LLP - Analyst : Thank you, sir. Understood.

Question: Raisham Jain - DSP Asset Management - Analyst : Yeah, hi. I hope I'm audible.

Question: Raisham Jain - DSP Asset Management - Analyst : Yeah, so I have just one question on the export piece I think which is close to 600 odds right now for you on a yearly basis, what kind of, customers are you seeing the inquiry coming from? And typically what is the size of the business on the export side you typically look for so if you can just give some sense because I think last few years, you have been talking about export obviously market has been a little patchy there, but, if you can, share your thoughts around that would. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 10:30AM, SHIE.NS - Q4 2025 Shriram Pistons & Rings Ltd Earnings Call

Question: Raisham Jain - DSP Asset Management - Analyst : Understood. Sorry, one more, question is on the, domestic, OEM business. You mentioned that you have 65% market share in India, but incrementally the new models and all, do you have higher market share, that, what is happening in the industry right now.

Question: Raisham Jain - DSP Asset Management - Analyst : Okay, understood thank you so much and all the best.

Question: Vijay Pande - Luama - Analyst : Hi, thanks for taking my questions and congratulations. A good set of numbers in fourth quarter. So I have one question I just wanted to check, if you can give us a little bit details about the upcoming projects, upcoming, like, or what are the upcoming new. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 10:30AM, SHIE.NS - Q4 2025 Shriram Pistons & Rings Ltd Earnings Call I think products or upcoming new products which you are working on that will drive the sales growth in AI 26' as well as in 27'. You can just give us a brief overview when these projects are expected to start and what will be the ramp up place.

Question: Vijay Pande - Luama - Analyst : Okay, and sir, I just want to check on the gross margin. Our gross margin, got weaken like declined quarter on quarter for both standalone and consolidated and particular reason because, any particular reason for this decline and do we expect the steel prices as the commodity prices have declined and From April, when do we expect the benefit to reflect into our pianist?

Question: Vijay Pande - Luama - Analyst : Okay and sir, if you can share, which are the main customers just last thing. Yeah, the last one.

Question: Vijay Pande - Luama - Analyst : Great, thank you.

Question: Vive Gotham - GS Investment. - Analyst : Yeah, am I audible? Yeah, hello.

Question: Vive Gotham - GS Investment. - Analyst : First of all, congratulations on good set of numbers sir. Let me begin by saying that I recently started tracking the company. So if you find the questions a bit elementary, please have patience. Number one is this actually what is the opportunity size for our company in the sector we are, operating in and, the expected growth rate. And is our IT engine segment of sunset sector or that is an excessive pessimistic view and any steps we are taking to mitigate the same thing.

Question: Vive Gotham - GS Investment. - Analyst : That that's a growth rate you were saying, what is the affected growth rate. Second thing was about you know while researching the company I was pleasantly surprised to know that la yeah last question please, second question only, that TCM data products, the company which evolve, so many Indian IT companies evolved from it. Whether it is a CL. Wipro or Mindtree from Shiv Nadar and [Surato.] It came out from our company. So a few were from [alala Ramji] was the founder of our company. If you can come as highlight few points if that culture. Is still prevalent over here and we are. Sort of taking advantage of that legacy. Sir, and how in what. manner. Thank you.

Question: Vive Gotham - GS Investment. - Analyst : Doctor [Chararam] was the key person behind BCM Data Products also, I believe, as for the interview of Shiv Nadar and [Ahoktaji] and so many other people.

Question: Vive Gotham - GS Investment. - Analyst : Got it. Thank you.

Question: Raman Ky - Sequent Investments - Analyst : Hello, sir. Thank you for answering my questions. My first question is with respect to the impact of UK free trade. I know the exports of the overall export contribution towards the revenue is around 15% to 17%. At the company level now we have India signed a free trade agreement with the UK, can this boost our exports growth as well as, at the same time there has been a, how do I say there has been a little bit uncertainty with the US target. So will that hurt our export in the US market and with the free trade agreement signed, will this be beneficial to, fill up the GAAP between the both the countries.

Question: Raman Ky - Sequent Investments - Analyst : Okay, my last question is with respect to so, what is the maximum potential revenue with the existing factory and what is the current to book? I know you don't give guidance, but I just wanted to understand.

Question: Raman Ky - Sequent Investments - Analyst : I'm so current auto book position.

Question: Raman Ky - Sequent Investments - Analyst : Okay, thank you.

Question: Himanshu Upa - Bubble Rock PMS - Analyst : Yeah, hi, good afternoon. My first question is, the royalty we pay is for what purpose, because last year we paid a royalty of INR48 crores. It was 1.6% of revenue. So will that remain, at similar percentages in furniture? And is it paid to only call bunch minute or for other technology tie ups also with the and how does it get? Is it based on? What technology we take or on certain products we pay this to some colour if you give on the royalty and how it gets.

Question: Himanshu Upa - Bubble Rock PMS - Analyst : And we have this technology tied with global companies. Does it mean to go to a particular geography or to approach a particular customer? We need to take their permissions because they may be already operating in certain geographies. So what, does that mean? Any idea?

Question: Himanshu Upa - Bubble Rock PMS - Analyst : Okay, so even if they are in a particular geography, we can also operate with in that particular geography or the customer.

Question: Himanshu Upa - Bubble Rock PMS - Analyst : And one last thing, we have two brands Usha and SPR in one last question just one last question we have two brands Usha and SPR in the aftermarket. Can you tell which segments they cater to and how are they different, in terms of positioning or placement or whatever it.

Question: Himanshu Upa - Bubble Rock PMS - Analyst : Oh thank you.

Question: Lakshmi Narayan - Tunga Investments - Analyst : With two questions. So it's just when you started the year, in terms of the auto business, you would have had certain budgets, certain aspirations, and the year end here. I just want to understand what has actually possibly surprised you, and what has actually negatively surprised you. For example, as there's been some, competition realignment which actually got you some business which you didn't anticipate, just want to hear your, thoughts on that.

Question: Lakshmi Narayan - Tunga Investments - Analyst : What did you what did you anticipate and it actually did much better than your anticipation and why.

Question: Lakshmi Narayan - Tunga Investments - Analyst : Got it. So there has been a tie up of NPR and written globally, and NPR is also working with one of our competitors, I believe. Now what how that realignment is going to affect your market, is that something that you can share?

Question: Lakshmi Narayan - Tunga Investments - Analyst : Alright, thank you. I'll get back to you.

Question: Devianj Gupta - - Analyst : Yeah, hi, couple of questions regarding the subsidiaries. So how much of that plastic business is still ice focus because on Takahata products it mentions some FI controllers and stuff which I'm guessing is more an ice business.

Question: Devianj Gupta - - Analyst : Sure. So Takahata in the site presentation or if I look at the Takahata's website. And I look at the products that are there offered by Takahata, right, so it mentions something known as engine cooling part or a fuel pump. Now just by eating the world it seems more like an ice product. So while it is still plastics for us, but it is still linked to the ice life cycle, right, when the thick your headwind I it's a different thing, but it's still ice business. So I wanted to understand of overall plastic business that we are doing right now in the subsidiaries. How much is still on ice only products?

Question: Devianj Gupta - - Analyst : Got it and the other question regarding the subsidiary was this.

Question: Devianj Gupta - - Analyst : Sure. Thank you.

Question: Prateek Bhandari - AART Ventures - Analyst : Yeah, hi, thanks for the opportunity. You mentioned that we are setting up a plant in, Coimbatore, for SPR, EMF5. So what would be the CapEx amount for this plant and what would be CapEx amount for FY 26. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 10:30AM, SHIE.NS - Q4 2025 Shriram Pistons & Rings Ltd Earnings Call

Question: Prateek Bhandari - AART Ventures - Analyst : And just one more question if I squeeze in.

Question: Prateek Bhandari - AART Ventures - Analyst : Yeah, so, wanted to understand as to you mentioned, in your previous call that, we have some new products introduced in the aftermarket. So just wanted to understand as to how those products.You know, are doing currently both the connecting dots and the well components.

Question: Prateek Bhandari - AART Ventures - Analyst : Alright, thank you.

Question: Mok Srirannka - Atum Capital - Analyst : One question I wanted to ask recently we acquired [Kana Infa.] I wanted to understand the opportunity there and also the opportunity in, the die casting space. Are we trying to make more components for light weighting of like light weighting of, components in the. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 10:30AM, SHIE.NS - Q4 2025 Shriram Pistons & Rings Ltd Earnings Call

Question: Mok Srirannka - Atum Capital - Analyst : That's it for me. Thank you.

Question: Nandan Pradhan - MK Global - Analyst : Yeah, if you could just help us understand the split between Stand-alone EMFI. Takata, TGPL and (inaudible)

Question: Nandan Pradhan - MK Global - Analyst : Okay, so FY 25 you would have to select.

Question: Nandan Pradhan - MK Global - Analyst : Alright, thank you so much. That's it from me. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 10:30AM, SHIE.NS - Q4 2025 Shriram Pistons & Rings Ltd Earnings Call

Question: Monique Bunsil - Master Capital - Analyst : Hi sir, thank you for taking my question. So I'm having one question like as you mentioned, you have dominant position in this space, right? So then you must be having some pricing power as well. But if we look at the COGS as a percentage of sales for the past five years, it has increased from 33 %-34% in March 2020 to 39% last year, so. Can you paint some colour over this?

Question: Monique Bunsil - Master Capital - Analyst : Okay, my last question. What was, what is the current capacity utilization and how it has emerged in the past three to four years?

Question: Monique Bunsil - Master Capital - Analyst : Is it a good understanding like in one of the phone calls you mentioned 70% to 75% was the capacity utilization at that time, so it may be around 80%-82%. Is that between 75% to 80% is what it is today.

Question: Monique Bunsil - Master Capital - Analyst : Okay. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 10:30AM, SHIE.NS - Q4 2025 Shriram Pistons & Rings Ltd Earnings Call

Question: Himanshu Upa - Bubble Rock PMS - Analyst : Himanshu Upa, Buckle Rock PMS. Yeah, hi, thanks for giving me another opportunity. I had a question on the export business. In the exports business aftermarket, how big can that be an opportunity, and do we have our own distribution network in some of these markets and because many of our products have a larger, it's a repetitive business okay for pistons and piston rings. So are we doing a branded business there or how is it and some.

Question: Himanshu Upa - Bubble Rock PMS - Analyst : And inorganic opportunities, means would we be only focusing in India or outside India also means and some thoughts on that and how do you again select the company and where we don't.

Question: Himanshu Upa - Bubble Rock PMS - Analyst : Oh. Okay. Thank you.

Question: Anand Shenoy - AS Capital - Analyst : Good afternoon, Am I audible? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 10:30AM, SHIE.NS - Q4 2025 Shriram Pistons & Rings Ltd Earnings Call

Question: Anand Shenoy - AS Capital - Analyst : So my question was on the Takata business. So sometime back you had mentioned about increase of the capacity. Just wanted to understand what kind of capacity increase has been done and is it ready and like what kind of customer additions we are seeing in Takata business.

Question: Anand Shenoy - AS Capital - Analyst : Okay, thank you.

Question: Banj Gupta - Latent advisors - Analyst : Hi sir again, for taking my question. So the question is on the export numbers. So if I look at our pie chart given in the presentation, it says exports is around 17% and if I look at the bar graph it says INR484 crores. If I do 484 by 17, the number comes to around INR2,800 crores of revenue. Which is less than the either the standalone or console revenue, so how should I understand this difference?

Question: Banj Gupta - Latent advisors - Analyst : So the 484 that is given in the presentation is stand-alone export or console export. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 10:30AM, SHIE.NS - Q4 2025 Shriram Pistons & Rings Ltd Earnings Call

Question: Banj Gupta - Latent advisors - Analyst : So even if I divide and the 17% is given on. The on slide 10. Exports at 17%. So should I then consider that okay on standalone 17% is export and that is that.

Question: Banj Gupta - Latent advisors - Analyst : You've mentioned that exports includes aftermarket as well, so this 26% is not included in my club. This is altogether different this is domestic aftermarket

Question: Banj Gupta - Latent advisors - Analyst : Got it. Understood.

Question: Banj Gupta - Latent advisors - Analyst : Got it. Got it. And just one question, it's not a question for moderator in the presentation, can you just add the revenue break up by the different standalone and subsidiary companies? It becomes easier to understand how the business is moving. That will be really helpful.

Question: Banj Gupta - Latent advisors - Analyst : But thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 10:30AM, SHIE.NS - Q4 2025 Shriram Pistons & Rings Ltd Earnings Call

Question: Vijay Pande - Luama - Analyst : So, thank you for taking on one more question from my side. Just I wanted to understand what will be the margin profile between, our products. So like, the power train product. From plastic folding product and other products if you can just briefly tell us which has a higher margin profile. That will be very helpful.

Question: Vijay Pande - Luama - Analyst : Thank you.

Question: Keisha - Rakan Investors - Analyst : It's we met, hello, am I audible?

Question: Keisha - Rakan Investors - Analyst : Yeah. So if I look at the scale of our subsidy business, this quarter, it has come to, almost INR130+ crores scroll and, even on the margin front, blended basis it looks like it's a 15% EBITA, so is this scale and margin here to stay.

Question: Keisha - Rakan Investors - Analyst : So it's a console, with the standalone figures. I get a INR20 crore EBITA on a INR133 crore revenue in this quarter. [I'm talking the GP.] (inaudible) (Multiple speakers) You're talking about Q4 number of. Hello.

Question: Keisha - Rakan Investors - Analyst : Yes, sir. I'm just making the console figures with the stand-alone figures.

Question: Keisha - Rakan Investors - Analyst : Quarter.

Question: Keisha - Rakan Investors - Analyst : Yeah, so, I hope, the, it's understood, or should I repeat the question?

Question: Keisha - Rakan Investors - Analyst : Yeah, so, sir, the scale this quarter has been, if I net, console and, stand-alone figures, the scale has risen sequentially year on year, quarter on quarter in every way, and the margin is also coming about, I mean, it's expanding, so I was, I just wanted to know if this overall scale of our subsidiaries is here to stay, if we are scaling up, if they're in the process and, or if there is any one off in this quarter. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 10:30AM, SHIE.NS - Q4 2025 Shriram Pistons & Rings Ltd Earnings Call

Question: Keisha - Rakan Investors - Analyst : Great, sir. Thank you. All the Best.

Question: Tarshan Piyora - Invest Group - Analyst : Hi, thank you for the opportunity. So, I'm actually a little bit new to your company. So, again, please, show some patience in case the question is elementary, but, wanted to know that on the export side, when we talk about OEMs or we talk about the after, the aftermarket, who is a major competitor like which country is our major competitor? Is it China or is it any other country?

Question: Tarshan Piyora - Invest Group - Analyst : Got it, Thank you.

Question: Lakshmi Narayan - Tunga Investments - Analyst : If I look at your business, I just want to understand, for, there are two or three things involved system and things, how much of your business comes from places where you supply everything as one assembly, and how much is coming from sending what, selling one or the other. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 10:30AM, SHIE.NS - Q4 2025 Shriram Pistons & Rings Ltd Earnings Call

Question: Lakshmi Narayan - Tunga Investments - Analyst : Did he also make. This $1 dispenser.

Question: Lakshmi Narayan - Tunga Investments - Analyst : We also make this $1 system where you know essentially very, low on realization. I mean we all know.

Question: Lakshmi Narayan - Tunga Investments - Analyst : Got it got it. Thank you.

Question: Banj Gupta - Latent advisors - Analyst : Hi, sir, just one quick question on the Coimbatore plant. So while we have done the 70 CapEx, and let's say we at least had the you had mentioned that [APR] is already our client. So how much of capacity would let's say [AP] take and how much would be the spare capacity for any other, future business that comes in, or will we need to do implement. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 10:30AM, SHIE.NS - Q4 2025 Shriram Pistons & Rings Ltd Earnings Call

Question: Banj Gupta - Latent advisors - Analyst : So sorry, I, so does it mean that any new so if we had MPR plus five other customers and the six customer comes we will need to do additional CapEx.

Question: Banj Gupta - Latent advisors - Analyst : Understood, yeah, got it. Thanks.