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Huge Domestic Opportunity, and shifting towards cleaner fuel along with first mover advantage and strong order book, will provide a strong tailwind to Divgi Torquetransfer System Ltd.
DTTS Ltd look strong with huge order book and first mover advantage along with improving PAT
The company is one of the very few suppliers in India with the capacity to design and offer torque coupler, DCT, and system level transfer case solutions. They are one of the top suppliers of transfer case systems to Indian car OEMs and the biggest supplier of transfer case systems to Indian manufacturers of passenger vehicles. They are also the sole manufacturer of torque couplers in India and the sole exporter of transfer cases to international Manufacturers. Additionally, they are able to design and deliver transmission systems for electric cars (or “EVs"). They have received a company award for this reason, and they are now designing and creating prototypes of EV transmission systems. They have been given a contract to furnish EV transmission systems for one of the top EV manufacturers in India as of the date of this Red Herring Prospectus. an a,, a new an an a to, a to the, a, the a Additionally, they were given a contract to sell parts for hybrid vehicles to a major OEM, but this client does not rank among the top five clients of the business. The company works closely with transmission engineering advisory companies in Europe like FEV and Hofer.
Company manufacture and supply a variety of products under the broad categories of:
The company has internal software development resources, which aids in their ability to give system-level solutions and software that regulates vehicle dynamics. They are also among the first few makers of steel synchronizers in India and one of the top suppliers of carbon-based and steel synchronizer systems for the Indian market. Through a focus on innovation, the provision of tailored solutions in distinctive products, internal software development capabilities, and product development and production at quality standards acceptable to their customers and at reduced costs, they have attained leading positions for a select number of products in their portfolio. They are in the process of launching domestically made DCT systems for the Indian market.
The business designs, develops, produces, and supplies engineered, complete solutions and parts to car OEMs in countries like India, the USA, China, Korea, and Russia. With their strong focus on research and development and advanced in-house hardware and software capabilities, they have also been providing turnkey solutions across the automotive industry, including passenger vehicles, utility vehicles, and commercial vehicles from their facilities at Bhosari and Shivare near Pune in Maharashtra and Sirsi, in Karnataka. Leading automotive OEMs like Tata Motors, Mahindra & Mahindra, BorgWarner, a Japanese automotive supply chain business, a Chinese automaker, an Indian automaker, and an Indian supplier to a global auto OEM are just a few of their clients.
Divgi Torqtransfer Systems (DTTS) takes pride in graduating from niche single product (Transfer Case - TC) & made-to-order component supplier to the System Level multi product diversified player in a short period of time. DTTS is the largest supplier of TC to 4WD PVs (4 Wheel Drive Passenger Vehicles) in India. It is the only Indian manufacturer of Torque Coupler for FWD PVs (Front Wheel Drive). It has commenced manufacturing of own designed EVT (Electric Vehicle Transmission) or Reduction Gear in India’s only and the largest EVT making facility for PVs at present. DTTS is already executing multiyear EVT supply contract and many more to begin progressively from Jan-24. Further, the execution of a 5-year order inflow of Rs7,190mn received in June-23 quarter to begin from Jan-24. Additionally, DTTS is working on several RFQs globally.
DTTS has been criticised for being a niche one product company which doesn’t provide scalability. The only product company had then was Transfer Case (TC) which gets used only in 4WD vehicles. This niche helps in achieving prominent and leadership position in the EV business though. Moreover, their JV with erstwhile partner BorgWarner put a lot of restrictions on DTTS in going for product diversification. Eventually, after coming out of JV in 2016, DTTS has ramped up its product portfolio of mainstream products; by mainstream it means that every vehicle needs these products. And as many of its customers go global, the company has quite an enviable position there. DTTS manufactures its flagship product TC at ~30% lower cost than global players even after doing substantially lower volumes as compared to peers. It still earned good margins and remained liquid with unlevered balance sheet. Credit goes to its lean cost structure.
By leveraging on five decades of promoter’s experience and technological prowess in power transmission system in automobile space, DTTS has developed world class capabilities in engineering, mechatronics, software development and system integration. With focus on R&D and technology tie ups in place, DTTS developed its own Torque Coupler (NexTrac), Dual Clutch Transmission (DCT) and EVT.
DTTS definitely offers a credible alternative to OEMs (Original Equipment Manufacturers) under China plus one policy as it has transformed itself as system level player. Built necessary infrastructure right from designing to product validation testing. It has own mechatronics and indigenously developed embedded software with own IP. The company has proven quality track record with zero PPM. The company won award from Kirloskar Toyota for quality in the recent past.
The company has decided to take components business to the next level and is investing in building up capabilities there. It rightly believed in the philosophy that components business is the first step to eventually capture system level business. Moreover, system level business has longer gestation period and takes time to fructify. However, components business provides shorter lead time and opens up opportunities across all types of power trains and keeps the revenue tap open.
DTTS presents itself as a global player with a firm eye on exports. However, exports got a setback in the recent past and the company is putting its act together to revive it. It has opened offices in Germany and South Korea; also entered into an agreement with Toyota Tsusho to enter into Japanese ecosystem. It has started bidding for RFQs floated by global OEMs and their Tier I vendors. It has set a target of achieving Rs1bn revenue from exports by FY25E.
Electric Vehicle (EV) is thing of the future. The EV is the biggest disruption that has happened in the automotive industry since its inception because architecturally, the IC engines and gearboxes have principally remained the same since the start of automobile industry. DTTS has developed EVT (Reduction gear) in-house. The company has set up the largest state of the art facility to manufacture EVT near Pune with an annual capacity of 100,000 units and bagged its maiden system level contract for EVT. The supply has already commenced from July 2023. It has helped DTTS in transforming itself from a mere component manufacturer to a cost efficient system level player even in relatively new EVT segment. DTTS has very carefully identified segments it wants to cater in EV space i.e., 3W, SUV, Cars, and LCVs, given their global market. With the recent IPO, the company is sitting on high liquidity and proposed to incur capex of ~Rs1.5bn to develop capability to capture global opportunities, achieve scale across products portfolio, purchase equipments for manufacturing high precision products and improve productivity to bring down manufacturing cost.
Industry Research:
Indian economy recorded a robust 6.7% CAGR over fiscal 2015 to 2020 period driven by rising consumer aspirations, rapid urbanization, government’s focus on infrastructure investment and growth of domestic manufacturing sector. The economic growth was supported by benign crude oil prices, softer interest rates and lower current account deficit. Indian government also undertook key reforms and initiatives such as implementation goods and services tax, Insolvency and Bankruptcy Code (IBC), Make in India initiative, financial inclusion initiatives, gradual opening of sectors such as retail, e-commerce, defense, railways, and insurance for Foreign Direct Investments (FDI). FDI into India grew from 45.1 billion USD in fiscal 2015 to 73.5 billion USD in fiscal 2020. Growth over fiscal 2015 to 2020 was however impacted due to demonetisaton, NBFC crisis, GST implementation and slower global economic growth. Over fiscal 2015 to 2020 India’s economic growth was led by services followed by industrial sector.
Auto finance disbursement showed better-than-expected revival in the latter half of fiscal 2021. Most sub-segments witnessed underlying asset sales recovering to pre-Covid levels. Two-wheeler and passenger vehicle segments gained on account of pent- up demand and increased preference for personal mobility as lockdowns were lifted and people were wary of using public transport. In the CV segment, while sales of medium and heavy commercial vehicles (M&HCV) and buses remain tepid, that of light commercial vehicles (LCV) are improving. In the current fiscal, a gradual improvement in consumer confidence on expectations of a faster economic growth will revive vehicle sales. Consumer preference for own vehicle for personal mobility supported by lower financing costs and new model launches are also likely to support underlying demand for PVs. Overall, PV loan disbursements are expected to see a ~17-21% growth. The chip shortage, however, has posed challenges as OEMs’ supply chain challenges heightened.
In case of CVs, too, disbursement is expected to pick up this fiscal as economic recovery will lead to an increase in private consumption and freight demand. As collections improve amid demand revival, lenders’ risk aversion is also likely to decline. Replacement demand is also likely to pick up. Overall, new CV loan disbursements are projected to grow 30-35% this fiscal. Disbursements in the two-wheeler segment are expected to increase 2-6% in fiscal 2022. Due to loss in income on account of pandemic and lockdown, demand for two-wheeler has seen a hit. Motorcycle, whose demand comes more from the rural front, saw a decline in sales on a Y-o-Y basis in the festive months. This can be attributed to irregular rainfalls in many rural pockets affecting farmers income. According to industry sources, people have chosen to postpone their purchases by a quarter or two, until the fuel and vehicle prices moderate.
Shareholding Pattern:
Investment Rationale:
EV is the biggest disruption that has happened in the automotive industry since its inception because architecturally, the Internal Combustion (IC) engines and gearboxes have principally remained the same since the start of automobile industry. What is exciting is the vastness of an unprecedented opportunity. Even if electric vehicles (all segments put together) account for no more than 20% of the overall automobile population the world over, that itself could still translate into an annual market of 20mn pure electric vehicles a year globally. And Electric Vehicle Passenger Vehicle (EV PV) could be a sizable chunk of the overall pie. Shift towards cleaner fuel, Production Linked Incentive (PLI) to boost production and exports of EV and related components along with China plus One policy would create a healthy ecosystem for domestic sales and exports to pick up in EV space. Currently, majority of the EV transmissions imported in India are largely from China and the government push for localization should compel automotive OEMs to source locally. DTTS possesses a strategic advantage in the development of electric vehicle transmissions (EVT) due to its expertise in gear manufacturing and world-class manufacturing facility. With rising penetration and adoption of EV in Passenger Vehicle (PV) segment, DTTS sensed the huge opportunity very early. What sets DTTS apart is its ability to design, develop, manufacture and validate complete transmission solutions for EVs. And its customers, therefore, see DTTS as a cutting-edge supplier that brings design knowledge to the table. The company is present in the mid-to-high sophistication space.
On account of its early initiative in developing end to end process for EVT, DTTS has become the sole supplier in India that developed EVT and started supplying it to TATA Motors through TACO (Tata Auto Comp Systems Ltd.) for mass production quantities for Tigor and Tiago. Moreover, the company bagged contract for Punch for which supply will start from Q4FY24. It is also on the verge of supplying for premium model Nexon. Its successful EVT development and collaboration with TATA Motors attracted interest from major EV players. Order from Mahindra Electric Vehicles for E-Jeeto transmissions (45KW and 10KW) and ongoing discussions with MG Motors for the MG Comet highlight the growing demand for the company’s drivetrain solutions in the EV market. These RFQs of premium vehicles will help DTTS to further diversify revenues. Early involvement brings sticky business. Hence, early involvement means DTTS is integrated into the platform of the customer. So whether it's MG Motors, Tata Motors, M&M or customers overseas that DTTS is working with, once DTTS becomes part of that platform, it is likely to remain with auto OEM through the lifecycle of the product. In the EV space, a particular acute pain area for OEMs is noise, vibration, harshness (NVH) of their powertrains where one stop shop of integrated capability of DTTS is a strength to help customers solve these problems effectively and speedily. And that is a distinct competitive advantage that DTTS brings to the marketplace. The EV business will also help to diversify customer base and revenue mix and gain new opportunities.
DTTS has been involved with Tata Motors from the drawing board stage for “A Segment” models -Tigor and Tiago EV versions. The company developed a robust gear box to service this EV need. The quality performance at customer OE (Original Equipment) plant was very high with Zero PPM. The client earlier used to import from China and used to face occasional problems. EV business is a demonstration of the diversification in the product portfolio, and also diversification in the customer base. DTTS has already received peak orders of 120,000 units of annual volumes from Tata Motors, and expected to ramp-up in the next few years. DTTS manufactures 3 types of EV transmission gears for Tata Motors
a) Challenger (used in Tigor/Tiago)
b) NOVA (used in Punch ) to be launched in January 2024
c) Klenger (used in Nexon/Altroz) for which negotiations are going on with Tata Motors
DTTS is present on EV version of Tiago, Tigor for which production has started and revenue of Rs103mn has already been booked in Q2FY24. They have got the validation of product done for Punch and the production would start full-fledged in January 2024. Then after the company will take up project for Nexon. At present, Tata Motors is importing EVT gear boxes for Nexon. But to the reduce cost, Tata Motors will go for localization for Nexon as well. The current capacity of DTTS is 8,000-10,000 transmissions per month for EVT. The realisations per EVT unit is Rs11,000-11,500. There are 3 important stages in development of EVT (Reduction gear). First one is die casting then second is right programme management support and third being validation. Now DTTS has in- house validation that saves a lot of time and cost. Moreover, the longest lead time for these developments is the aluminum high-pressure die casting development. But between the advanced computer-aided simulation and the experience that DTTS has in manufacturing TC (Transfer Case) for Internal Combustion Engines (ICE), and the fact that it has now own machining in-house and the testing validation in-house, DTTS could collapse these lead times significantly. If the vendors don't have all the kind of infrastructure that DTTS has, then it can take 18-20 months to do this sort of job, but DTTS has been able to do it within eight months. The same is the experience while executing the project for Mahindra E-Jeeto. From award of contract to schedule of production, the lead time has been five months. Tata Motors wanted Tiago, Tigor and Punch models to be prioritized over Nexon for EVT till mid Q2FY24. However, at the beginning of Q3FY24, Tata Motors has made some changes in the schedule and has now given preference to Nexon EV over Tigor and Tiago. For Nexon, Tata Motors currently procures EVT from a Chinese system aggregator Prestolite. This development has impacted the order inflow for DTTS and will be facing near term headwinds. However, DTTS is in the constant touch with the management of Tata Motors and is expected to start supply for Punch and Nexon as per schedule. For Punch, the supply is expected to start from Q4FY24 while for Nexon the supply will likely to commence either from Q4FY24 or from Q1FY25E. However, as against the expected order inflow of 8,000- 10,000 units of EVT per month, the order inflow has been much lower in Q3FY24.
Focus on power transmission only: EVT comprises of three main components i.e. Battery/Battery Management System (BMS), Motor/Inverter and Gear Box. DTTS is present in manufacturing of gear box for EVT. Software is also now integral part of transmission systems. DTTS has its own embedded software which integrates mechanical and electronic part of the EVT or electric propulsion system. Electric Motor/Inverter, software and Electronic Control Unit (ECU) are bit crowded spaces and have presence of global leaders as well. However, there are fewer good gearbox manufacturers than motor manufacturers and software providers. Hence, the DTTS philosophy of sticking to transmission business, knitting, deepening and widening of product portfolio and becoming faster and better transmission maker with integrated Parklock will actually make them a more effective competitor in an otherwise difficult marketplace that is developing.
In-house software & testing facility, own architecture and shorter lead time: DTTS offers both in-house mechanical hardware and software. It has in-house testing capability and is developing software based simulation of designs. DTTS has been able to develop products with shorter lead times. DTTS is an independent developer and supplier, designs its own architecture and then develops specific designs within that. The company is able to bring these standard architectures to solving problems at different OEMs. So the turnaround time for the customer, the overall investment required then in terms of engineering and tooling becomes optimized for the customers. It keeps DTTS competitive and at the same time profitable. The advantage DTTS has they have their own designs, hence the IP for these products is owned by DTTS.
Strong engineering capabilities: The precision requirement for manufacturing EVT and related components is very high and can be compared with that of aerospace industry. DTTS has already proved its capability in gear manufacturing by becoming a system level vendor with own designed and manufacturing capabilities. In case of EVs, given the higher rotational speeds and NVH (Noise, Vibration and Harshness) challenges, it requires high- precision gear teeth manufacturing. DTTS is well capable of doing this through advanced manufacturing capabilities. It would augur well for localizing EV supply chain, reduce its time to market, achieve cost rationalization and in turn improve return on investments. It has bagged system level and component level orders both for customary ICE transmission and now for EVT. The EVT production capacity set up by DTTS is flexible. It can build products from fairly heavy duty SUVs to small three-wheeler transmissions as well, and has a capacity of more than 110,000.
Single vendor policy of OEMs: The insight that is emerging now in the industry is that it is actually safer for the OEMs to work with one supplier for all the critical components as a kit. It will allow OEMs in establishing clear line of accountability in the whole process. If OEMs source components from three or four suppliers and in case of any NVH issue, the problem solving for the OEMs or the Tier I vendor becomes really challenging. Hence, it is advantageous for the entire value chain to have one supplier do all the components and work very closely with the Tier I vendor or the OEMs. In the current era, the noise, vibration, harshness level of gearboxes can be measured accurately and precisely and quantitative targets can be set. Any company that has the engineering acumen to understand this and execute its business to these standards clearly has an advantage. Notably, DTTS by virtue of being a systems level player therefore brings a very enlightened approach to its component development as well; and appears well with both Tier I vendors and OEMs.
Lean cost structure: The companies are facing cost challenges in Europe and in developed world today led by general inflation and higher energy costs. Additionally, geopolitical instability led by China, Russia, Ukraine, Israel, etc., has forced auto OEMs to look at India as the capable vendor given Indian companies are focused on discipline of excellence, strategic positioning and resource allocation to execute the strategies. Further, even the big multinationals of the world that are also on the ground here in India, are going to find it very difficult to meet the kind of cost expectations Indian OEMs or even multinational OEMs have. This is because the cost targets set by these OEMs are pretty difficult to meet for multinationals. Hence, there lies an opportunity for vendors like DTTS to grab the business.
Ability to absorb technology and customize it through own R&D at lower cost: Large PV OEMs prefer multinational vendors on account of their strong R&D capabilities. Strong R&D means they have data on reliability which is helping OEMs to do things right the first time. So in that space, the multinationals are going to be a force to reckon with, but they are also severely challenged on costs. The Indian companies like DTTS will have a role to play in helping them cut costs and make their products more affordable, especially in the Indian market. A lot of work is likely to migrate to India in a big way.
Selling and exporting EVT components as a first step to become EVT vendor: DTTS has bagged or is under the process of securing orders for supplying EVT components to Indian leading PV OEMs and Tier I vendor in US for global EV PV OEMs. This will help DTTS gain knowledge about customer product quality levels and design. DTTS has been so agile, confident and convinced about the EV opportunity and the products it has developed i.e., EVT (Reduction gear) that it has gone ahead and set up (currently) India’s largest state-of-the art greenfield EVT manufacturing facility spread over 10 acres at Shirwal, near Pune with the capex of more than Rs500mn. DTTS designed the product (EVT- Reduction gear), developed the product, built the factory, put in the equipments/machinery and started the production. All has been done within 18 months – from Jan 2022 to July 2023. This line is flexible. It can build products from fairly heavy duty SUVs to small three-wheeler transmissions, and has a capacity of more than 110,000 units per annum. DTTS makes EVTs caters to motor power ratings of 55 Kilowatts, 60 Kilowatts, and 95 Kilowatts, allowing it for application across different types of electric vehicles, from three-wheelers and smaller cars to more powerful models. It can manufacture components for the same.
The plant will produce Dual Clutch Transmission (DCT) and EVT and related components
This facility will house new products, both EV transmissions and the future dual-clutch automatic transmission (DCT) that the company is working on. DTTS has state of the art R&D set up at this plant. New indigenously designed and developed EVT for Tata Motors’ Tiago, Tigor, Punch and Nexon along with E-Jeeto of M&M will be supplied from this facility and other plant in Sirsi, in Karnataka.
The plant has in-house testing facility and R&D centre
DTTS has state of the art R&D set up at this plant. DTTS has developed the capability to do all three important stages of EVT making in-house – Computer aided engineering and analysis (CAEA), prototype development and the validation of the product. The company just buys aluminium casting and forging from its vendors. Rest all process like heat treatment and grinding are done in-house. DTTS has an ability to manufacture components, assemble the product, and then do functional testing, and even test those transmissions in cars for validation. Only DTTS at present can offer this kind of a full service, integrated, one- stop-shop business model. This gives DTTS advantage for the next few years to further bolster and strengthen the first-mover advantage.
The company has installed Dyno Durability Test stand, first of its kind in India
The company is not limited like a lot of its peers, to just component making and manufacturing parts to print, but they are designing, developing their products. DTTS is continuously upgrading its facilities. In the EVT plant also it is procuring advanced equipment to ensure the production of EVTs and DCTs with a high level of precision in the gears and components. It has already installed the new high power, high torque, high speed transmission Dynamometer to validate the new EVT by the company; it is one of the first of its kinds in the country. DTTS has procured it from FEV, Germany. It is high speed reliability testing equipment, which can be used to validate manual transmissions, four-wheel drive transfer cases, dual-clutch automatics, and EV transmissions. So, with this, the company hopes to accelerate the validation and development of its new products. This infrastructure will stand the company in very good state. So, there are assembly lines, and end-of-line functional test stand on which the company assembles and tests transmission products respectively for supply to the customers. The company also owns new Gear Grinder just received from Germany. The company is also evaluating development or in-licensing of an integrated electric drive unit, which will help integrate powertrain and the drivetrain components.
Parlock System will be a growth driver
Safety legislations warrants that EV should have Parklock system. EV owner applies handbrake while in the park mode and if handbrake fails, there could be a serious safety hazard. Unlike ICE (Internal Combustion Engines), there is no engine braking in an EV. Hence, additional safety measure in terms of Parklock system is going to become integral to the gearbox. However, currently Parklock systems are not strictly enforced and hence the low end cars do not have integrated Parklock systems in the gearbox. However, DTTS EVT design has provision for integrated Parklock system. It simply means there is an electromechanical motor that actuates and locks the gearbox, but it has an Electronic Control Unit (ECU) that takes the signal when the user sort of puts it in park mode and then actuates this. DTTS has been well versed with this electronic and software part of the system since last 25 years as it has been doing software based, electronically controlled four-wheel drive systems for the automotive industry. Its in-house software development team is well versed since 2008 with integrating mechanical drivetrains into vehicles. DTTS already has ECU and shift motors and all production ready to be deployed in the market as and when the government mandates 100% Parklock legislation. The company is also evaluating development or in-licensing of an integrated electric drive unit, which will help integrate powertrain and the drivetrain components.
Management Profile:
Balu Naravan Patil is the ‘Head - Group Operations’ of Company and has been associated with the Company with effect from November 12, 2018. He holds a diploma in mechanical engineering from Board of Technical Examinations, Maharashtra and a master’s degree in Business Administration and PHD in Philosophy from the Open International University of Complementary Medicines and Medicina Alternativa. His previous work experience includes years at Bajaj Auto Limited, Ognibene India Private Limited, Perciforge & Gears, Kalyani Technoforge Limited, and SAM Hitech Components Private Limited. During Fiscal 2022 his gross compensation was ₹ 5.53 million.
Sudhir Shridhar Mirjankar is the Chief Financial Officer of Company and has been associated with the Company with effect from December 1, 2016. He holds a bachelors degree in Commerce from University of Pune and a Post Graduate Diploma in Business Administration from Symbiosis Centre for Distance Learning. He has qualified as a certified management accountant from the Institute of Management Accountants, United States. During Fiscal 2022 his gross compensation was ₹ 2.85 million.
Gopal Krishna Dalvi is the HR and Organization Development Head of Company and has been associated with the Company with effect from August 13, 2007. He holds a diploma in Mechanical Engineering from Government Polytechnic, Kolhapur and a Master’s in Business Studies from University of Pune. His previous work experience includes years at Keihin Fie Private Limited and Spicer India Limited. During Fiscal 2022 his gross compensation was ₹ 3.64 million.
Satish Chandrashekhar Kadrolli is the Company Secretary and Compliance Officer of Company. He joined the Company on September 5, 2022. He holds a bachelors’ degree in Commerce from, Savitribai Phule Pune University (formerly known as University of Pune) and a certificate of membership from The Institute of Company Secretaries of India. He has been a compliance professional for over 7 years. His previous work experience includes years at Rajkumar Forge Limited, Western India Forgings Private Limited (Group) and Corpage India Advisors Private Limited. During Fiscal 2022 he was not paid any compensation.
Dipak Annasaheb Vani is the Head of Purchase and Global Supply Management of Company and has been associated with the Company with effect from July 1, 2006. He holds Bachelor’s Degree in Production Engineering form Shivaji University, Kolhapur. He has over 15 years of experience in production, quality, quality systems, supply chain management, purchase, global supply management and strategic sourcing in our Company. During Fiscal 2022 his gross compensation was ₹ 3.93 million.
Rakesh Rameshchandra Sharma is the Head of Growth & Launch Management of Company and has been associated with the Company with effect from January 15, 2018. He holds a Bachelor’s Degree in Mechanical Engineering from Babasaheb Ambedkar Marathwada University, Aurangabad. His previous work experience includes years at Patheja Brothers Forgings & Stampings Limited, Del Tech Controls Limited, Delval Flow Controls Private Limited and Inoxpa India Private Limited. He has previously worked at Divgi Warner Private Limited as a Senior Engineer during 1999 to 2002. He was the Chief Operating Officer at Divgi Metalwares Private Limited during 2015 to 2018. During the Fiscal 2022 his gross compensation was ₹ 3.60 million.
Prasanna Bhaskarrao Deshpande is the Head of Engineering of Company and has been associated with the Company with effect from February 1, 1997. He holds bachelors degree in Mechanical Engineering from Gulbagra University, Gulbagra. During Fiscal 2022 his gross compensation was ₹ 4.71 million.
Balaji Macherla Veerabhadram is the Sales, Marketing and Business Development Head of Company and has been associated with the Company with effect from October 15, 2019. He holds a diploma in Mechanical Engineering from Murugappa Polytechnic, an autonomous institution. He also holds a post graduate diploma in Marketing from the from Institute of Marketing and Management, New Delhi. He was associated with Brakes India Limited for 10 years. He has previously worked at Motherson Automotive Technologies & Engineering as the Associate Vice President. He has served as the DGM- Marketing at Visteon Automotive (India) Private Limited and as a senior manager at Kalyani Brakes Limited. He has experience of working at Endurance Magneti Marelli Shock Absorber and Knorr Bremse Systems for Commercial Vehicles India Private Limited. During Fiscal 2022 his gross compensation was ₹ 6.88 million.
Financials:
Balance sheet
Profit & Loss
Cash Flow
Valuation & Opinion:
Indian EVT market is likely to reach Rs44bn (485,000 units) by FY27E, clocking a CAGR of 79%, from Rs2.6bn (28,000 units) in FY22. DTTS is all set to ride the wave with own 110,000 units per annum plant for indigenously developed EVT. It is already executing a multiyear contract from Tata Motors for EVT replacing Chinese supplier. With M&M order to start from Jan-24 coupled with ongoing work on several RFQs will keep the order inflow healthy. DTTS has successfully transformed itself as a system level player and works with global and domestic OEMs and Tier I vendors. It is the largest TC supplier to PVs in India. It has developed EVT on its own and commercialised it. DTTS has in-house capabilities in mechatronics, embedded software and validation testing which makes it a complete solutions provider. It has received a large order inflow of Rs7,190mn in Q1FY24 and is working on several RFQs. Its estimated revenue, EBITDA and PAT CAGR of 34%, 33% and 29%, respectively over FY23-25E and RoE, RoCE to expand from 13.5% and 15.7% to 17.2%, respectively over same period led by improvement in margin and asset turn.
I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Stocx Research Club). I have no business relationship with any company whose stock is mentioned in this article.
I am not a SEBI Registered individual/entity and the above research article is only for educational purpose and is never intended as trading/investment advice.
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