Precision Camshafts bags Ford order of 8 million camshafts

Solapur based camshaft manufacturer Precision Camshafts Limited (PCL) has bagged an order worth of Rs 550 crore from Ford Motor Company.  

In a message to investors the company said, “We are pleased to inform that the Company has won a global contract from Ford for the delivery of 8 million camshafts over the life of the program, which is expected to commence supplies from 2018-19.” The camshafts are to be supplied to their facilities in Spain and China. 

PCL exports camshafts to US, Europe, South America, China and South Korea. Its key customers include General Motors, Ford Motor Company, Hyundai Motors, Maruti Suzuki, Mahindra & Mahindra, Tata Motors, Toyota, Fiat, Mercedes Benz, Porsche, SsangYong, Force Motors, Escorts and Mahle.

Capacity Expansion 

To increase its capacity at the Solapur plant, the company is adding a machine shop with proposed capacity of 2 million units annually with a total capex of Rs 230 crore. The capacity addition will be in phases over FY18 subject to the order received from customers.  The company says this new capacity addition will expand its product offerings for existing customers as well as target new customers. PCL is also setting up a plant in Brazil for machining of camshafts to General Motors. The GM order includes 6 million units over the life of the programme. 

PCL has four foundries in its EOU and one foundry at the domestic unit with a total manufacturing capacity of 13.38 million camshaft castings per annum and 2.22 million machined camshafts per annum respectively. PCL's goal is to be the world leader in camshafts manufacturing, with mutually beneficial engagements with OEMs across the globe and achieve 20 percent share in the global camshaft market for passenger cars. 

Q4 results

During Q4 of FY17, the total revenue of the company grew 13.13 percent to Rs. 123.69 crore with a net profit of Rs. 1.56 crore (.95 crore in Q4 FY16). The domestic revenues increased by 53.70 percent and export revenue dropped 1.85 percent. During the quarter the ratio of domestic and exports business was 31:69 compared to 23:77 in Q4 of FY16. Sales of casting camshafts declined by 14.31 percent YoY and a 72.09 percent increase in sales of machined camshafts. In FY17, PCL registered total revenue of Rs 476 cores,  a 2.45 percent growth over the previous year.