Fiem Ind:
This auto ancillary company kept FY20 PBT flat by gaining market share & grew PAT because of Tax benefit
A small thread about its business model (1/8)
This auto ancillary company kept FY20 PBT flat by gaining market share & grew PAT because of Tax benefit
A small thread about its business model (1/8)
Company mainly caters to two-wheeler lamps (halogen + LED) at OEM level in domestic market. Refer the charts to see the breakups
Main customers are Honda (42% sales), TVS (26% sales). Except Hero Moto, almost all two wheeler OEM are its customer (2/8)
Main customers are Honda (42% sales), TVS (26% sales). Except Hero Moto, almost all two wheeler OEM are its customer (2/8)
Industry shifting from halogen from LED over next 5 years simply provides 2x revenue opportunity (LEDs are 2-2.5x costilier than Halogen), see an old tweet (3/8)
Company invested IPIS segment which was a capital misallocation (admitted by company) and no further investment won't be made.
Company started developing 3 new products with technical collaboration (4/8)
Company started developing 3 new products with technical collaboration (4/8)
1. Bank (lean) Angle Sensor
Technical Assistance Agreement With Toyodenso japan
Started Supply to Honda
Expecting Rs 35cr sales this year (5/8)
Technical Assistance Agreement With Toyodenso japan
Started Supply to Honda
Expecting Rs 35cr sales this year (5/8)
2. Canister
Technical Assistance Agreement with Aisan Industry Co
Supply to TVS & YAMAHA
Expecting Rs 5cr sales this year (6/8)
Technical Assistance Agreement with Aisan Industry Co
Supply to TVS & YAMAHA
Expecting Rs 5cr sales this year (6/8)
3. Fuel Pump Module and Ic Connector
Joint Venture With Aisan Industry Co (26% stake)
Started Supply to Bajaj
Expecting Rs 100cr sales this year (7/8)
Joint Venture With Aisan Industry Co (26% stake)
Started Supply to Bajaj
Expecting Rs 100cr sales this year (7/8)
In FY 20 Two-wheeler industry production degrew14.14%. However Fiem Revenue degrew only 4.75% (gained market share)
In Aug 2020, production was up 4%, need to see whether demand pick up sustains (8/8)
(No recommendations)
In Aug 2020, production was up 4%, need to see whether demand pick up sustains (8/8)
(No recommendations)
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