Q4 conference call notes
• Servicing to Wescon USA was challenged due to covid issues in Juarez, Mexico (was declared an orange zone). Non-automotive margins have increased from the low base in the last couple of years. Supplies made from Indian have higher margins (albeit with lower realizations; customer pays a premium for supplies from Juarez and El Paso)
• Europe demand was robust, servicing was a challenge due to logistics issue + Brexit + shortages
• Luxlite + Trifa: Inability to travel + insipid after market conditions
• Phoenix lamp: Doing very well in domestic market, facing headwinds in current quarter (Q1FY22) due to oxygen shortage
• Domestic cable division: Won prestigious awards from Honda, TVS motor and Kubota for being the most preferred supplier
• Break shoes: Secured and supplying to a new OE customer, and also to the after-market. Had some amount of success in the EV segment
• Electronics Instruments cluster (Suprajit Technology): Have a good product roadmap (electronic throttle control, gear shifters for US market, gearbox for Brazil catering to agricultural market, CSB brakes) targeting the EV space. Also working on electronic total control system for some EV customers. Wescon sales were higher due to this. Will have multiple products coming out in the next few years
• Current quarter capacity utilization is 60-65%. Capacity expansion is done with a 2-3 year perspective to ensure efficient capital allocation
• Longer term trends
o Consolidation of suppliers
o Expect to outperform broader industry by 5-10%
Disclosure: Invested (position size here)