ANNUAL REPORT THREADBARE (ART) | ENDURANCE TECHNOLOGIES FY18: All-round improvement, subsidiary traction intact
Endurance Technologies’ FY18 annual report highlights a strong operating performance. EBITDA grew 22% to INR9.3b in FY18, led by a strong performance at the standalone level, driven by continued growth in the domestic 2W/3W sectors. However, we note that subsidiaries had outperformed over the last few years (barring FY18), led by ramp-up of operations in Europe. This is evident from EBITDA margin expansion of 565bp to 17.8% at subsidiaries over FY14-18 (margin shrank marginally by 20bp to 12.7% at standalone level over the same period). Consolidated earnings-to-cash conversion stood at 102.6% (FY17: 88.5%), primarily aided by negative working capital requirement at subsidiaries. Cash conversion cycle (CCC) for subsidiaries stood at -17 days from 52 days in FY14, while standalone CCC deteriorated to 33 days from 14 days in FY14. Negative CCC of subsidiaries, along with profitability growth, has led to high cash being constituted in capital employed (~22%), dragging the return ratios (RoIC at 18.4%, higher than RoCE of 15.9%).
Endurance Technologies Ltd (CN) is an India-based automotive component manufacturer company. The Company is engaged in manufacturing of aluminium die castings (including alloy wheels), suspension, transmission and braking products. The Companys products include aluminium die casting, which offers high pressure die castings, low pressure die castings, gravity die castings, and alloy wheels; suspension which offers shock absorbers, motorcycle front forks, and hydraulic & gas charged dampers, macpherson struts, gas springs for cars ; transmission which offers clutch assemblies, continuous variable transmissions (CVTs), and friction plates; and braking, which offers hydraulic disc brakes, tandem master cylinder assemblies, hydraulic drum brakes, and non-asbestos brake shoes.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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