Bajaj Auto key to Endurance Tech’s sales recovery, says CFO

Maharashtra-based auto component manufacturer Endurance Technologies expects its volumes to recover, particularly from key client Bajaj Auto, despite recent drops in two-wheeler sales. The company’s Chief Financial Officer PS Raja Gopal Sastry said that he expects the volumes to be up again despite the decline.

Gopal Sastry believes that “it takes very little for the sentiment, as far as the two-wheeler market is concerned, to bounce back.” He also said that new tax policies and Endurance’s expansion efforts will stimulate demand, leading to positive, albeit potentially moderated, growth.

Endurance Technologies’ European operations are a strong performer, showing resilience despite geopolitical challenges. Gopal Sastry highlighted a “21% year on year (YoY) in terms of revenue and 27% in terms of earnings before interest, taxes, depreciation and amortisation (EBITDA),” driven by strategic investments and the ability to cater to both internal combustion engine and electric vehicle demands.

The company is also experiencing significant growth in its brakes business. With orders for both foundation brakes and advanced anti-lock braking systems (ABS), Endurance is expanding its customer base beyond its primary client, Bajaj. Gopal Sastry stated that they have “been getting very good orders from the other customers, like Hero MotoCorp Ltd (HMCL), Honda Motorcycle & Scooter India (HMSI), TVS Motor Company, Yamaha,” indicating a diversified and expanding market reach.

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Looking ahead, Endurance Technologies boasts a substantial order book and is actively expanding its production capacities. This includes a focus on eco-friendly facilities, reflecting a commitment to sustainable growth. Gopal Sastry mentioned a “pipeline of about ₹3,300 crore of orders received in the last three to four years,” signalling strong future revenue streams.

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Finally, regarding KTM, another key client, Gopal Sastry reported positive developments. The court’s support for KTM’s restructuring has led to renewed order schedules, and Endurance Technologies expects KTM to return to normal operations within the next two quarters.