Fiem Industries Quarterly Result Update

Fiem Industries in the EV Spotlight

Fiem Industries, which specialises in automotive components like lighting and mirrors, recently shared its financial results for the second quarter of the fiscal year 2024. They managed quite well despite the slow growth in the two-wheeler (2W) industry. Their total sales were a bit lower than last year, down by 3%, but they did see a 7.3% increase from the previous quarter, earning Rs. 510 crores.

Their operating profit for the quarter was Rs. 68.1 crores, which is a slight decrease from last year but a good increase from the last quarter. Their profit after tax (PAT) was Rs. 43.5 crores, growing nicely both from last year and the previous quarter.

In their different business areas, the lighting segment’s sales dropped a little, while the plastic parts segment saw a bigger decline. However, their rear-view mirror segment did see some growth.

A key development for Fiem is their partnership with Gogoro, a company in the electric vehicle (EV) sector. This collaboration is about making important EV parts like the Hub Motor Assembly and Motor Control Unit. Fiem is starting by targeting the Indian market and expects to increase the value of the components they provide over time. They’ve already started supplying some parts to Gogoro and plan to supply other EV companies too.

Fiem currently has a 6% share in the EV market, supplying to big names like Ola and Hero Electric. They’re well-placed to benefit from the expected growth in the EV market over the next few years.

Looking ahead, Fiem is likely to become an important player in the EV world. They’re already strong in the two-wheeler lighting market and their partnership with Gogoro will help them expand in the EV sector. Their financial stability and diverse client base, including new clients like Polaris, put them in a good position for future growth.

Some highlights from their recent updates include:

• Expecting an increase in two-wheeler sales in the second half of the year.
• Working on new projects with Yamaha and starting supplies for new models like Jupiter 125.
• EV revenue was around 6% this quarter, and they’ve added new brands in this segment.
• They spent Rs. 51 crores on new projects in the first half of the year and plan to spend a total of Rs. 100 crores for the year.
• They’re recovering from a fire incident and are spending on replacing damaged equipment.
• They expect to see good results from their Gogoro partnership soon.
• While Yamaha’s export business is down, the domestic revenue is growing, and they have several new projects planned.
• They’re continuing their business with Honda Motorcycle & Scooter India (HMSI) and are expecting to start supplying two new models from Hero next year.