KROSS LIMITED – Investor Presentation Summary

Key Operational Highlights

  • Revenue contribution of ~49% from Trailer Axles & Suspension business and ~51% from Component business in Q2FY27
  • Export sales now contribute ~8% of total component business in Q2FY27
  • Current axle beam capacity stands at 7,500 units per month with utilization at ~60-65%
  • Tipping jacks installed capacity of 800 kits/month
  • Dedicated marketing sales & service team of 120 members
  • Served 200+ customers in the last 3 fiscal years

Key drivers of operational performance: Capacity expansion investments including axle beam extrusion plant, robotic forging facilities, and seamless tube production trials

Segment-wise Performance

  • M&HCV Segment: Momentum continued with robust OEM demand
  • Trailer Segment: Q2 volumes exceeded Q4 FY26 levels
  • Tractor & Agri Segment: Demand remained consistent supported by relatively low inventory levels
  • Exports: Contribute approximately 8% of total component business

Explanation of significant changes in segment performance: Growth driven by price revisions with most OEMs and Tier-1 customers concluded, supporting profitability despite input-cost pressures

Financial Highlights

Revenue: Rs. 235.1 crore (Q2 FY27), Rs. 419.4 crore (H1 FY27)

EBITDA: Rs. 30.6 crore (Q2 FY27), Rs. 53.3 crore (H1 FY27)

PAT: Rs. 19.7 crore (Q2 FY27), Rs. 33.2 crore (H1 FY27)

EPS: Rs. 3.08 (Q2 FY27), Rs. 5.14 (H1 FY27)

Margins: Gross Profit Margin 43.9% (Q2 FY27), EBITDA Margin 13.0% (Q2 FY27), PAT Margin 8.4% (Q2 FY27)

YoY/QoQ comparison: Q2 FY27 revenue growth of 79.6% YoY and 27.5% QoQ; PAT growth of 143.5% YoY and 47.9% QoQ

Drivers of financial performance: Higher revenue growth, operational efficiencies, and capacity expansion benefits

Key Risks: Input-cost pressures mentioned in management commentary

Geographical Revenue Split

Domestic vs Export Revenue: Export contribution approximately 8% of total component business

Regional Breakdown: Purchase orders secured from Sweden-based company and leading European Tier-1 player

Balance Sheet Snapshot

Total Equity: Rs. 523.0 crore (H1FY27)

Equity Share Capital: Rs. 32.3 crore

Non-Current Liabilities: Rs. 95.8 crore (H1FY27)

Current Liabilities: Rs. 116.8 crore (H1FY27)

Total Assets: Rs. 735.5 crore (H1FY27)

Property Plant & Equipment: Rs. 220.0 crore

Capital work-in-progress: Rs. 54.9 crore

Inventories: Rs. 109.7 crore

Trade receivables: Rs. 206.3 crore

Cash and cash equivalents: Rs. 6.3 crore

Financial Health Insights: Strong growth trajectory with increased investment in capacity expansion

Capex & Cash Flow Health

Capital Expenditure: ~Rs. 167 Crores planned for seamless tube facility

Investment Rationale: Focus on capacity expansion, backward integration, and technology upgrades including robotic automation

Strategic & R&D Initiatives

Investments in Innovation: India's first Axle Beam Extrusion Plant (commercial production commenced), Seamless Tube facility (mills installed, trials targeted Feb-Mar 2027), High-pressure moulding line to double casting capacity, Robotic Forging facility for axle shaft production, Cold Drawn Tubes manufacturing

Expected impact on growth: Extruded technology expected to drive market share gains, improve profitability, and open new export revenue streams

Strategic Rationale: Expanding into high-growth markets, reducing operational costs through backward integration, enhancing technological capabilities

Industry Trends & Business Environment

Macro/Industry Trends: India's auto-component industry projected to hit $200 billion by 2030 at 14% CAGR (McKinsey report); India's automotive market supported by government policies, infrastructure, and export potential

Impact on Company: Positioned to benefit from industry growth through diversified product portfolio and expansion initiatives

Management Commentary & Growth Outlook

Strategic Outlook: "Kross is well positioned to deliver healthy growth in FY27. Our focus remains on profitable growth, operational efficiency, customer relationships and disciplined execution" - Mr. Sudhir Rai, Chairman & MD

FY Guidance: Q3 and Q4 volumes expected to be stronger than Q2; H2 traditionally 10-15% up than H1; Target 15% revenue share from agriculture segment over next two years

Risks and Opportunities: Input-cost pressures mentioned; Strong international inquiries and export opportunities identified

ESG Updates

  • Installed 60 KWP Solar Panel in Units V rooftop
  • Entered 3 MW Power Purchase Agreement, installation work to begin soon
  • Various social initiatives including blood donation camps, road safety awareness, and educational donations

Awards & Recognition

  • Super 8 Supplier by Ashok Leyland in FY25 Supplier Samrat Annual Regional Summit
  • Customer Excellence Award from VST Coreb
  • Silver award in Best Performance in Business Alignment by Ashok Leyland in 2023
  • Best supplier of the year award by York, a Tata Enterprise
  • Best supplier award for "Overall Performance" by TAFE