Any inputs on what would be ideal minimum quarterly sales numbers that would result in a profit?
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Too many competitors to Atul Auto in the EV segment.
Atul Auto finally unveiled their electric 3-wheelers at the Auto Expo in Delhi yesterday. For the first time (as far as I am aware) since the huge upcycle between 2012-2015, Mr. Vijay Kedia has given an interview in the capacity of Director at Atul Auto.
To me, this is playing out in a very similar way to the 2012-2015 upcycle:
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Depressed valuations, capacity expansion and improving business performance.
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Mr. Kedia owning a huge stake of almost 20%. As the stock went higher and higher, he virtually sold all his stake (big institutions were on the other side of the trade). In 2012-2015, it was a case of a virtually unknown stock getting discovered and swinging to the other extreme - so itâs unlikely that a cycle of this magnitude will repeat.
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The company giving many interviews on media channels with Mr. Kedia at the forefront (towards the end of the 2012-2015 cycle, he gave an interview as he was selling the stock). Now after a long pause, he gave this interview yesterday. Also over the last few months, there have been many interviews with the Atul Auto CFO (in contrast to the preceding few years).
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ShockingâŚ
Mr.Kedia on record saying they spend 100cr on R&D. is it right what i understand??
I dont found any big number on R&D front, and what they talking about âIn house LI bettery developmentâ is it joke or what?
Disc.Not invested
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Sharing some notes from the past few interviews.
20.04.2023 ET
- Invested 40-45 cr. for assembly of L5 battery
- Need to give some more time to understand profitability on 3-wheeler EVs
- Have restarted exporting petrol 3-wheelers
03.05.2023 ET
- Didnât get OBD2 certification in diesel engines (60% of sales), this was responsibility of vendor who has not managed to get it so far
- 10-12% from CNG, 10-12% from EV (L-3 vehicle)
- Commercial launch of L-5 will happen this month
19.07.2023 ET & ET Swadesh
- Received OBD 2 compliance certification for one product (rear engine product); awaiting approval for another (front engine product)
- Production line is ready, expect to bounce back to normal sales from this month (3500-4000 monthly sales)
- Repaid term debt via money raised from preferential allotment, balance amount will be utilized for working capital
- L5 vehicles: have received all certifications and are ready to launch, however launch will only be done once they received fame II approval (otherwise itâs not commercially viable)
Disclosure: Not invested (no transactions in last-30 days)
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on Mr Kedia - i hope it is not name lendingâŚthe Q1 FY24 results were so bad, that they have changed the display order of reports on their website âŚlooks fishyâŚ
Disc.: Exited
25.08.2023 CNBC
- Will be able to recover Q1FY24 volumes over remainder of FY24, will try to exceed 30â000 units in FY24
- Focus is on regaining pre-covid monthly volumes of 3500-4000 units
- Selling 500-600 EVs monthly (L3 category; lead acid battery)
- Breakeven is achieved when they sell 2300-2500 vehicles monthly
- Awaiting FAME II certifications for L5 EV 3-W
- Petrol 3-W (developed during COVID) has been received well in export markets
- Exports will grow from 10% to 20-25% in medium term
Disclosure: Not invested (no transactions in last-30 days)
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