Auto component maker Endurance Technologies is witnessing green shoots in the European market, though its clients in this region are still worried about inflation.
"The energy prices have reduced considerably, but are still double of 2019 levels. However, we have maintained an 18 to 19 percent margin for the European markets," says Ramesh Gehaney, Executive Director and Chief Operating Officer at Endurance Technologies, in an interaction with CNBC-TV18 on June 20th.
Endurance Technologies is engaged in the business of manufacturing and selling of aluminum die casting (including alloy wheel), suspension, transmission and braking products.
The company is
gaining presence in the electric vehicles segment and is currently in active discussion with prospective customers. It is also looking at new acquisitions for expanding footprints in the global markets. The order book for its electric vehicle segment has risen to Rs 600 crore. Gehaney says the electric vehicle segment poses better margins than the Internal Combustion Engine (ICE) segment, but the segment currently contributes a small portion to its business.
The company is confident of clocking 13 to 14 percent margins in FY24 and shall outperform the industry growth rate. In the recently ended
fourth quarter of financial year 2022-23, EBITDA margins improved 40 bps year on year to 12.8 percent. Revenues in same quarter grew 8 percent to Rs 2,234 crore, while net profits stood flat at Rs 136 crore.
However, the stock is trading nearly 1 percent lower on the exchanges at 11:30 am on June 20th.
(Edited by : C H Unnikrishnan)