TIINDIA Q3 FY24 earnings call.
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Revenue
₹4,197 Cr
verified against source
Revenue YoY
15.2%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Tube Investments delivered consolidated revenue of INR 4,197 crore (up 15.2% YoY), driven by robust performance in Engineering and Metal Formed segments. However, consolidated PAT declined to INR 390 crore from INR 418 crore YoY, largely due to losses in the EV/bicycles mobility business (loss of INR 8 crore vs profit of INR 2 crore YoY). Standalone revenue grew 11% to INR 1,898 crore with PBT of INR 210 crore. TI Clean Mobility has INR 1,760 crore capital employed with INR 300 crore already spent and INR 460 crore planned for FY25 across four EV platforms. The three-wheeler dealer network expanded to 40 dealerships with 75 targeted by quarter-end; supply chain issues largely addressed with full resolution expected next quarter. The 250-person R&D team is developing next-generation proprietary components while current products use third-party motors, controllers, and BMS. Railway tender activity has resumed but with margin pressure. The company targets INR 650 crore standalone free cash flow while maintaining net debt around INR 200 crore. Key risks include continued EV losses without clear profitability timeline, Lotus Surgicals' ongoing amortization charges, and intensifying competition in the railway segment.
Colored figures show movement against the previous available record.
Guidance to track
- TICMPL plans INR 460 crore capital expenditure next financial year for tooling, R&D prototyping, homologation, and factory expansion across all four EV platforms (three-wheeler, heavy truck, SCV, tractor).
- Two additional product platforms—a tractor and a 3.5-ton small commercial vehicle—will hit the market around August-September 2024, with Jayem Auto leading SCV development.
- Dealer network expanding from 40 to 75 by end of current quarter, with north and east market entry underway. Full supply chain resolution expected by end of next quarter.
- Company expects standalone free cash flow of approximately INR 650 crore annually, with investments capped at 2x free cash flow to maintain financial discipline.
Risks flagged
- Management explicitly refused to provide guidance on when EV segment losses will stem, citing ongoing new product launches. The segment raised INR 460 crore of equity but requires further fundraising, indicating cash burn will continue.
- While railway tenders have resumed, management acknowledged increasing competition in the segment with margin pressure in the short term, requiring potential cost reduction measures.
- The optical lens business has not scaled beyond pilot stage due to prolonged customer product approval challenges, with management admitting progress has been 'much slower than wanted.'
- Analyst questioned sequential EBIT loss at Lotus Surgicals; CFO attributed it to Ind AS intangible asset amortization rather than operational performance, though free cash generation continues.
Key quotes
- We are not giving any guidance on when the losses will stem in EV, because we're launching new products there. And that's a business, that's why we've raised money specifically into that business, so that we don't have to fund it further from TI.
- It's definitely been much slower than we wanted, Jinesh. We've had a real challenge in that business, getting the product approvals from the customers we're working with.
- In all businesses and all the competitors in that business are all fairly strong competitors, right? So there, we need to make sure that we are basically able to compete on the front foot in all of those four businesses we get into. So we want to be conservative there and raise enough cash.
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