Endurance Technologies on upward swing, new order wins soar up to FY26

Aurangabad-based Tier supplier Endurance Tehnologies' standalone business from India is on an upward swing, with new order wins soaring up until FY26.

The company won new orders worth Rs 440 crore in FY23, which is expected to increase to Rs 1260 crore in FY24. This is a growth of 290% from FY23. In FY25, new order wins are projected to reach Rs 2260 crore, before increasing to Rs 2410 crore in FY26. This is a growth of 180% and 10%, respectively, from FY24. The strong order book is being driven by aluminum die castings, alloy wheels, suspensions, and braking components for certain newly launched models of premium segment motorcycles, the company stated in its recent investor presentation. 

In addition to new order wins, Endurance Technologies also has Rs 2500 crore of RFQs (requests for quotations) under discussion with various customers. These RFQs, if converted into orders, will further boost the company's order book.

The company's order book has been growing steadily in recent years. In FY20, it stood at Rs 593 crore. This increased to Rs 614 crore in FY21, Rs 745 crore in FY22, Rs 935 crore in FY23, and Rs 3.07 crore in FY24.

Endurance Technologies has seen its EV order book soar 420% in FY23, from Rs 90 crore in FY22 to Rs 380 crore in FY23. The company won 15 EV programme from 11 customers in FY23, which included EV suspension orders from Ather, Ampere, and Hero Electric. Also, there were EV brake orders from Ather, Okinawa, Ampere, and Hero MotoCorp. 

The company's Endurance's EV customers include Bajaj Auto, Ampere Mahindra Electric, Bounce, Hero Electric, Ather, and Okinawa, with HMSI joining as a new customer in August this year.

Endurance is one of the leading automotive component manufacturers, with a diverse range of technology-intensive products and operations in India and Europe (Italy and Germany). In India, the company predominantly caters to two- and three-wheeler OEMs, and its products include aluminum castings, suspensions, transmissions, braking, and battery management systems In Europe, it supplies aluminium castings to four wheeler OEMs, and also caters to the aftermarket for two wheeler components. 

Net profit jumps by 58% to Rs 163.5 crore during Q1 FY24
Endurance Technologies reported a consolidated net profit of Rs 163.5 crore during Q1 FY24, translating to 58.1% growth over the Rs 103.4 recorded in Q1 FY23 on the back of strong demand. The company's total revenues were Rs 2466.6 crore during Q1 FY24 as against Rs 2118.5 crore during the corresponding period of last year, which is a 16.4% jump. 

As per Anurang Jain, Managing Director of the company, the two-wheeler sales volumes for Indian OEMs have recorded a marginal YOY growth of 1.2 % in Q1 FY24, based on 9.2% growth in scooter volumes and 1.6%  de-growth in motorcycle volumes. Growth in three-wheeler volumes stood at 25.5 %, while passenger cars grew 7.2%. Endurance standalone revenues for Q1 FY24 rose 13.3% compared to Q1 of the last year. 

In Europe, average energy prices softened compared to the preceding quarter, but remained significantly higher than the long-term average prior to 2021. New car registration numbers for the EU grew 17.9% YOY. While most countries in the EU reported double digit growth, the growth was not even across major OEMs. Certain key customers of our company reported low/mid-single digit growth. In this backdrop, Endurance's Q1 sales in Europe in Euro terms grew 12.6% over the corresponding quarter of the previous year, Jain added. 

The Indian two-wheeler market is at an interesting juncture. "In the scooter market, EVs are expected to soon take a lead over ICE, despite the recent setback to volumes following the reduction in government subsidies," continued Jain. "All traditional products of our company, barring clutches, are required in EVs. Moreover, the Battery Management System (BMS), where Maxwell is a key player, forms a key part of the overall electric vehicle cost. In the last month, Endurance increased its­ shareholding in Maxwell from 51% to 56%, and the same will be increased to 100% in the next 4 years," he further added.