Talbros Automotive Components Limited - Q4 & FY21 Business Update

Talbros Automotive Components Limited has released a business update for the quarter and full year ended March 31, 2021 based on a limited review by the Management Team.

- Amidst Pandemic and wash out of sales in the 1st quarter of FY21, due to nationwide lockdown, the Company has achieved positive growth for FY21 and reported growth across the Forging and Gasket business

- The Forging business outperformed all other segments and achieved ~70% Revenue growth on YoY basis for Q4FY21 while for FY21 it grew over 25% on YoY basis.

- The Gasket business achieved Revenue growth of over 50% on YoY basis for Q4FY21 while on full year basis, it achieved single digit growth.

- Joint Venture companies reported below performance:

* Nippon Leakless Talbros Pvt Ltd. reported single-digit Revenue degrowth on YoY basis for Q4FY21. For FY21 the Company reported ~20% de-growth in Revenue.

* Magneti Mareli Talbros Chassis Systems Pvt Ltd. reported more than ~25% Revenue growth on YoY basis for Q4FY21. For FY21, the Company reported low double digit degrowth in Revenue.

* Talbros Marugo Rubber Pvt Ltd. reported highest ever Revenue growth of over 45% on YoY basis for Q4FY21. For FY21, the Company reported ~10% degrowth in Revenue.

* The drop in Revenue for FY21 for JV companies was largely due to the impact of lockdown witnessed during Q1FY21.

- Company has built a heathy orderbook in FY21 giving long term Revenue visibility:

* In June 2020, the Company along with JV companies received aggregate orders worth USD 31mn or Rs. 234 crs to be executed over a period of 5 years. A major part of this order was from an International OEM based in India and included domestic as well as export orders.

* In January 2021, Marelli Talbros Chassis Systems Pvt. Ltd., the 50% JV company of Talbros Automotive Components Limited announced multi-year order from a Large European Car Manufacturer for supplying BIW (Body in White design) parts worth ~Rs. 92 crs over the life of the contract.

* In March 2021, Company won multi-year orders worth ~Rs. 304 crs to be executed over a period of 5 years covering company's flagship products gaskets and forgings as well products from JVs Talbros Marugo Rubber Pvt Ltd and Magneti Marelli Talbros Chassis Systems Pvt Ltd.

- During the year, the Company entered in a Technical Assistance Agreement (TAA) with its Japanese partner 'Sanwa Packing Industry Co. Ltd.' for Light Weight Aluminium Heat Shield.

- In February 2021, the company sold its unused Land & building admeasuring ~1.67 acres in Chennai in the state of Tamil Nadu for Rs. 21 Cr. The net proceeds after deduction of statutory liabilities were utilized towards reducing debt and strengthening the balance sheet of the company.

- On standalone basis, the company has reduced its total borrowing by 30% in FY21 as compared to FY20.

Shares of TALBROS AUTOMOTIVE COMPONENTS LTD. was last trading in BSE at Rs.207.15 as compared to the previous close of Rs. 203.75. The total number of shares traded during the day was 1135 in over 97 trades.

The stock hit an intraday high of Rs. 214.1 and intraday low of 202.9. The net turnover during the day was Rs. 238324.

Source : Equity Bulls

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