Talbros Automotive hits 5% upper circuit after its JV bags order worth ₹1,000 crore
Upstox
2 min read • Updated: April 18, 2024, 2:37 PM
Summary
Talbros' JV has bagged an order worth ₹1,000 crore for the supply of equipment to a leading European OEM player. Supply orders will be executed over 8 years starting from Q4 of FY25.
Talbros Automotive Components Ltd shares jumped 5% on Thursday, April 18, after the company announced that its joint venture, Marelli Talbros Chassis Systems Private Limited (MTCS), has received an order worth ₹1,000 crore.
Talbros Automotive Components Ltd (TACL) opened higher by 5% to hit the upper circuit at ₹294.6 apiece on the NSE.
In a filing to the stock exchanges, Talbros said that its joint venture company has secured a multi-year supply contract worth ₹1,000 crore from a leading European original equipment maker.
The company’s joint venture, Marelli Talbros Chassis Systems Private Limited (MTCS), will execute the supply order over the next eight years starting from the last quarter of 2024-25.
“The order is centred on the supply of suspension arms tailored for both conventional Internal Combustion Engine (ICE) vehicles and new-age Electric Vehicle (EV) platforms for EMEA and NAFTA regions,” TACL said in the stock exchange filing.
The Pune plant of MTCS will produce the equipment. The company has planned a capital expenditure of ₹65 crore through internal accruals and debt.
The order has added a new customer for the TACL group in Europe, a highly specialized market for automotive components.
The contract will help improve the market share in Europe and open new avenues of growth with existing and new OEMs in the region, TACL stated.
The company bagged orders worth ₹980 crore across varied product segments in standalone and JV companies last year. Of these, orders of ₹475 crore were for supply for the EV segment. Also, orders worth ₹415 crore were related to exports.
Bolstered by order wins in FY24, TACL expects continued momentum in business and profitability, the filing said.
Talbros Automotive Components Ltd, a part of Talbros Group, manufactures auto components like chassis, rubber products and forgings in India. Talbros Group's portfolio also includes Mercedes Benz dealership for passenger cars.
TACL together with JV alliances have 10 manufacturing facilities at Haryana, Uttarakhand, and Maharashtra and an R&D technology centre at Faridabad.