Endurance Technologies Q3 Results Review- Consistent Improvement In Order Book, EV Play Improving: Anand Rathi

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Endurance Technologies Ltd.’s Q3 FY23 revenue grew 11% YoY, but declined 11% QoQ, to Rs 20.1 billion, on strong demand on order-book execution. During nine months-FY23, the company won orders of Rs 8.8 billion (Rs 1.9 billion in Q3 FY23) and had request for quotations of Rs 19.9 billion.

For electric vehicles, its overall order book for 9M FY23 was Rs 5.8 billion, including Rs 1.9 billion orders for Ather and Hero MotoCorp Ltd. (~Rs 2.4 billion won in Q3).

Endurance Technologies will supply battery management systems, braking systems and suspension systems to EV original equipment manufacturers like Ather, Hero Motors, Ola, Ampere, etc. For its braking business, it plans to develop ABS valves internally, which would reduce costs significantly and dependence on external suppliers, said management.

For passenger vehicles, it won orders of Rs 2.5 billion to supply castings to Hyundai and KIA. PV-to-overall sales is now 8% (versus 6.5% in FY22).

Europe’s Q3 FY23 revenue was €60.1 million (versus €57 million the prior quarter); Ebitda was €8.6 million (€6 million), with strong ~14.4% margins.

Adjusting for higher raw material costs in Europe, margins would have been 14.7%. It won orders of €60.1 million from VolksWagen, Stellantis and Daimler. As the orders enter the production phase and subsequently peak in the near term, we expect 18% growth in FY24 and 19% in FY25.

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