Whalesbook
Remsons Industries reported a 29% increase in net profit for the September quarter, reaching ₹4 crore, compared to ₹3 crore year-on-year. Revenue grew by 26% to ₹115 crore, with EBITDA at ₹13 crore. The company signed a technical licensing agreement with AUSUS Automotive Systems do Brasil LTDA for Brazilian OEMs, secured significant orders including ₹300 crore from Stellantis NV and ₹80 crore from Ford Turkey, and inaugurated a new manufacturing facility in Chakan, Pune.
Remsons Industries, a manufacturer of automotive OEM components, has announced robust financial results for the September quarter, with a net profit surge of 29% to ₹4 crore, up from ₹3 crore in the same period last year. The company's revenue saw a substantial increase of 26%, reaching ₹115 crore from ₹91 crore previously. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also more than doubled, rising to ₹13 crore from ₹7 crore.
Strategic advancements include a new Strategic Technical Licensing Agreement with AUSUS Automotive Systems do Brasil LTDA, aimed at technology transfer to serve Brazilian Original Equipment Manufacturers (OEMs). Furthermore, BEE Lighting, a subsidiary of Remsons, has secured a ₹12 crore order for designing and developing exterior vehicle lighting for a Global Multinational OEM. Remsons Automotive’s step-down subsidiary has been awarded a significant ₹80 crore, 10-year order from Ford Turkey for the supply of spare wheel winches.
Adding to its growth trajectory, Remsons has inaugurated a modern 30,000 sq ft manufacturing facility in Chakan, Pune, specifically for locomotive applications, equipped with advanced engineering and quality control systems. The company also announced a major ₹300 crore, 7-year order from Stellantis NV for the supply of control cables.
To support increasing customer demand and its vision of achieving ₹900 crore revenue by 2030, Remsons has identified an additional 80,000 sq ft property in the National Capital Region (NCR) for expansion. The company remains confident in its growth momentum, targeting revenues of ₹900-1,000 crore by FY29. Remsons plans to strengthen its business model, move up the value chain, broaden its product portfolio, and diversify into the Railways and Defence sectors.
Impact
This news signifies strong operational and financial growth for Remsons Industries, driven by significant new orders and strategic expansion. The diversification into Railways and Defence sectors, alongside continued automotive OEM business, suggests a promising outlook for the company. Investors may see this as a positive development, potentially impacting the stock positively. Rating: 8/10.
Terms:
OEM (Original Equipment Manufacturer): A company that manufactures products or components that are purchased by another company and made part of the second company's finished product. Remsons produces parts for larger vehicle manufacturers.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A measure of a company's operating performance. It is calculated by taking net income and adding back interest, taxes, depreciation, and amortization expenses. It provides an idea of the profitability of a company's core operations.
Strategic Technical Licensing Agreement: A contract where one party (licensor) grants permission to another party (licensee) to use its technology, patents, or know-how, often in exchange for royalties or fees. In this case, Remsons is licensing technology from AUSUS to serve Brazilian OEMs.
Subsidiary: A company that is owned or controlled by another company, known as the parent company. BEE Lighting is a subsidiary of Remsons.
Step-down Subsidiary: A subsidiary of a subsidiary; meaning it is controlled by Remsons indirectly through another company it controls.
Locomotive Applications: Refers to parts or systems used in trains or other rail vehicles.
