Automotive Axles Limited

N Muthukumar

PRESIDENT & COO, MERITOR HVS INDIA LIMITED

Nagaraja Sadashiva Murthy Gargeshwari

PRESIDENT AND WHOLE TIME DIRECTOR, AUTOMOTIVE AXLES LIMITED

S Ranganathan

CFO, AUTOMOTIVE AXLES LIMITED

35.5%

tc Automotive Axles Limited August 08, 2022 And these companies equity share is Meritor holds 35.5%, Kalyani 35.5% and rest within the public. We have more than 2000 plus employees of white collar a

30%

in terms of achieving the net zero in days to come. As a first step towards that, about more than 30% to 35% of our power consumption is coming from solar and the organization is moving towards water

35%

ms of achieving the net zero in days to come. As a first step towards that, about more than 30% to 35% of our power consumption is coming from solar and the organization is moving towards water positiv

80%

is coming from solar and the organization is moving towards water positive getting into more than 80% by solar, and also taking an aggressive target of reducing 50% of energy by doing a lot of conserv

50%

ter positive getting into more than 80% by solar, and also taking an aggressive target of reducing 50% of energy by doing a lot of conservation projects. On top of this, the company is also bringing in

100%

ction we are working with the OEMs we are working with suppliers to make sure that our product is 100% recyclable in the end, so that the waste is converted to wealth, and we are not dumping the mother

rs,

o. With that, ladies and gentlemen, I will hand over it to Mr. Nagaraja to talk about our customers, the products and what we are doing. And then Mr. Ranganathan for financial. Over to you Mr. Nagaraj

10%

also we are driving the diversity. In fact, we are very proud to say that, in our company, nearly 10% of our employees are women, we continue to invest in the not only gender diversity, but also we a

INR 501 crore

e, hope all of you might have already seen our financial results for the Q1 total revenue is about INR 501 crore as compared to INR 256 crore the same time last year. Year-on-year growth just close about 96%. As

INR 256 crore

already seen our financial results for the Q1 total revenue is about INR 501 crore as compared to INR 256 crore the same time last year. Year-on-year growth just close about 96%. As far as the EBITDA is concern

96%

1 crore as compared to INR 256 crore the same time last year. Year-on-year growth just close about 96%. As far as the EBITDA is concerned, this quarter we did about 10.5% as compared to 6.5% last year,

10.5%

-on-year growth just close about 96%. As far as the EBITDA is concerned, this quarter we did about 10.5% as compared to 6.5% last year, more or less in terms of percentage, it's about 62% increase in the

“As a first step towards that, about more than 30% to 35% of our power consumption is coming from solar and the organization is moving towards water positive getting into more than 80% by solar, and also taking an aggressive target of reducing 50% of energy by doing a lot of conservation projects.”

“On top of this, the company is also bringing in -- in terms of the gender equality, corporate governance, which we'll all be – we will be communicating to you on this.”

“And then if you really look at the product, the product has been placed in such a way that we will be able to address every requirement of our customer.”

“In terms of the business growth strategy, like what Ranga said, the market is set to grow and rest assured that your company will grow more than the market and we have completed the successful implementation of LTA agreement with two top customers.”

“So, if you can give some color on that in terms of what is the -- like the kind of market size of that industry currently and I know it's a very small part of our total business right now, but if you can give some more qualitative or quantitative details in terms of what can it be for us in next two to three years, it will be really helpful.”

“See construction industry is growing, like what Chairman was saying and the Board -- and the Chairman and Board have set us a target that we should penetrate into this for our long term growth.”

“And sorry, I'm not able to give you the exact target what we are looking from construction segment at this point of time, because we don't share, but we want to de-risk our dependency on commercial vehicle business by introducing this.”

“But that will be classified in a defence segment for us, going forward.”

“We will be – see Meritor is a preferred partner for both the Leyland in terms of axles and brakes and in terms of Tata Motors, it's the brakes.”

“become a very preferred supplier and then we will ensure that we grab those opportunities And Sir my second, this is not questions but as you told us what we expect from you is the way you are reducing total ownership costs, the way you innovate, you the way you take awards from the customers.”

N Muthukumar

17

S Ranganathan

6

Sagar Parekh

4

Moderator

4

Shashank Kanodia

4

Radha

2

MODERATOR

1

Nagaraja Gargeshwari

1

Sunil Kothari

1

N Muthukumar

1

N Muthukumar

Ladies and gentlemen, Good day and welcome to the Automotive Axles Limited Q1 FY ‘23 Earnings Conference Call hosted by Batlivala and Karani Securities India Private Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing ‘*’ then ‘0’ on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sailesh Raja from Batlivala & Karani Securities India Private Limited. Thank you over to you Sir! Thanks Renju. Good afternoon and thanks to everyone who have logged in into Automotive Axle Q1 FY ’23 earnings conference call. Today we have the senior management team of the company Dr. N Muthukumar, President & COO, Meritor HVS India Limited, Mr. Nagaraja, President and Whole Time Director, Automotive Axles Limited; and Mr. S Ranganathan, C

Nagaraja Gargeshwari

Thank you, Muthu. Good afternoon, ladies and gentlemen, I'm Nagaraja Gargeshwari President and the Whole Time Director for Automotive Axles. So just like what Muthu mentioned, Meritor has been always a very strong player in commercial vehicle segment or industry. And as you can look at it, we address the diverse end markets and supply to most of the major customers not only in India, but also in the Asia PAC. So whether it's a truck or a trailer, bus, or military or aftermarket, we have a product line which I'll be showing you in a couple of slides later. We have a presence in starting from 5 ton vehicle all the way up to 55 ton tractor. So continue to drive the innovation, continue to upgrade our products, continue to come out with innovative solution to address both the customer and end user requirements. Next slide please. As you can see here, there's -- a probably that may be a myth, you know, sometimes customers talk to us, like a Meritor your products are a bit expensive, but wha

S Ranganathan

diameter Brake and all the way up to 410 Brake and also we are pioneers when it comes to disc brakes. Next slide please. We've been able to achieve it because of our team. Meritor always believes in investing in employee engagement, developing our people because we think that human capital is the most important to be successful in the business, and rightly so, we not only invest in developing hard skill, but also in the soft skill. As we speak just today morning, Muthu inaugurated our leadership program here at Mysore for some of the upcoming leaders in our company. We not only focus on the training, but also we want to engage, work life balance, as you're all aware is taking a very important role for every employee. So we continue to engage with our employees meaningfully, celebrating festival and then also we are driving the diversity. In fact, we are very proud to say that, in our company, nearly 10% of our employees are women, we continue to invest in the not only gender diversity,

N Muthukumar

Thanks Ranga. I'll go through that. Ladies and gentlemen, I think the team did an excellent job, Nagaraja talked about post-COVID, one of the key initiatives that the team, the leadership team here drives is engagement of the people and we have been very successful in retaining our talents and taking them to the next level of performance. Thank Nagaraja, thanks Ranga for leading those initiatives in the plant to make sure that our people have been seeing our efforts. Team I think we have done the very very key initiatives like what Ranga said, we have a business growth strategy, we have a cost measures and safety continues to be our focus area. All the peoples in the plant has not only been done vaccination of two dose but also been taken with a booster dose for all the people. Like what I presented earlier, the ESG strategy is on and then the implementation is in progress. The even though the COVID level has come down, they continue -- company continued to practices on the COVID proto

Sagar Parekh

Thank you. We will now begin the question and answer session. The first question comes from the line of Sagar Parekh from One-Up Financial Consultants. Please go ahead. Yes. Good afternoon, everyone and thanks for taking my question. I have few questions. So, firstly, on the -- so during the AGM, Mr. Kalyani he spoke about new business, I ~Automotive Axles Limited -Gtowlh ond Pe110,mano ... through TechnOlogv Oftd T+omwottc Automotive Axles Limited August 08, 2022 mean new segments that we are focusing on and one of the segments that he touched upon was the construction equipment industry and -- off highway industry. So, if you can give some color on that in terms of what is the -- like the kind of market size of that industry currently and I know it's a very small part of our total business right now, but if you can give some more qualitative or quantitative details in terms of what can it be for us in next two to three years, it will be really helpful. Thank you for the question. See

Sagar Parekh

Okay. But that will be classified in a defence segment for us, going forward. So, this year, we can see some bit of that…