Rico Auto plans to raise EV segment contribution from 12% to 30% a year
In an interview with CNBC-TV18, Arvind Kapur, Chairman & MD at Rico Auto Industries, shared that EV segment will play an increasingly significant role in the company's revenues, with EV contribution to revenues projected to increase by 4-5 percent every year going forward. In fact, Kapur stated that the company expects EVs to contribute 25-30 percent of its revenues in the near future.
In an interview with CNBC-TV18, Arvind Kapur, Chairman & MD at Rico Auto Industries, shared that the EV segment will play an increasingly significant role in the company's revenues, with EV contribution to revenues projected to increase by 4-5 percent every year going forward.
In fact, Kapur stated that the company expects EVs to contribute 25 percent of its revenues in the near future.
Kapur said, “This year we should be crossing about 12 percent of our turnover would be the EVs and we are adding almost 4 to 5 percent year-on-year. Soon we should be crossing almost 25-30 percent that is what we are targeting.”
However, Rico Auto will not be leaving the ICE space and will continue to focus on both the EV and ICE segments.
Kapur also discussed the company's financials, stating that the FY24 EBITDA margin will be in double digits and that overall revenue growth will be in the range of 15-20 percent for the next couple of years.
He said, “We did announce that we will be in the double-digit space as far as the margin is concerned for the next year. Our growth for the next couple of years would be in the region of about 15 percent plus, I would say around 20 percent that we are looking to grow for the next couple of years.”
He added that the FY24 EBITDA margin could even break the barrier of 10 percent.
Rico Auto has increased their alloy wheels capacity from 3.5 million units to 4.5 million units. Kapur highlighted that the company has potential revenue from capacity addition is close to Rs 500 crore.
With the growing demand for electric vehicles and the government's push for EV adoption, Rico Auto is positioning itself to take full advantage of the opportunities in the EV market while still maintaining a strong presence in the ICE market.
(Edited by : Pradeep John)
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