Dhoot Transmission Ltd (DHOOTTRANS) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, you are connected for the Dhoot Transmission Limited conference call. Please stay connected. This conference will begin shortly. Participants, you are connected for the Dhoot Transmission Limited conference call. Please stay connected. The conference will begin shortly. Thank you.
Moderator: Ladies and gentlemen, good day and welcome to the Q2 and H1 FY '27 earnings conference call of Dhoot Transmission Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star and then zero on your touch-tone phone. The management of Dhoot Transmission Limited is represented by Mr. Rahul Dhoot, Managing Director, Mr. Naveen Kumar, CEO, India Wiring Harness and Electronics, and Mr. Nitin Kalani, Group CFO. Please note, this conference is being recorded. At this time, I would like to hand over the conference to Mr. Rahul Dhoot. Thank you, and over to you, sir.
Rahul Dhoot (Dhoot Transmission Ltd): Hi, a very warm welcome to all of you today. I am Rahul Dhoot, founder and Managing Director for Dhoot Transmission. In the second quarter, the automotive industry saw another strong volume growth performance. For the two-wheeler industry, the last quarter was one of the best quarters with 16% growth. Comparing Y-o-Y performance for the quarter, domestic EV industry grew in excess of 100% and ICE ICE in excess of 10%. Export for two-wheeler grew about 28% percent as per SIAM data. Against the same, Dhoot Transmission saw a very strong growth of 60% on Y-o-Y basis. Revenue from wiring harness grew 44.6% Y-o-Y and from non-wiring harness business by 124%. Multilink acquisition contributed to about 160 crores during the qua- quarter. EV revenue in the same quarter grew 108% for us and with this, the overall contribution of EV revenue has now reached 31% of our total sales, up from 27% in Q1 and from 24% of FY '26. We have started ramping up volume for the powertrain battery with a new South India-based customer. I am happy to inform you that in spite of the hard cycle of commodities, our organic adjusted EBITDA margins remained consistent at 15.2%. Reported EBITDA margins after considering 0.5% ESOP impact and Multilink consolidation is 14.3. We expect Multilink margins to improve after the
Rahul Dhoot (Dhoot Transmission Ltd): creation of integration. Pre-exceptional PAT for the quarter is at ₹162 crores, which is an increase of 30% over the same quarter last year. Other than this, we have fully repaid the debt, which was to be repaid out of IPO proceeds and our net cash, bank, and FD balance is at ₹900 crore, which is in line with our expectations. During the first 6 months, we added two battery manufacturing plants, one in south and one in west. Both of them have commenced production. Our new wiring harness plant at Chhatrapati Sambhajinagar got functional and we are already running at full capacity in that plant. We expect the capex for the year to exceed our initial expectations, as the industry has surprised us positively on the growth and provided opportunities. The opportunities have led us to [cough] to consider incremental investments in the capacities and acceleration of those. As a result, our new capex guidance for the year would be around ₹750 crores. Also, our collaboration with Ride Vision is progressing well, and we are exploring various business opportunities with various customers. We expect to share more updates in the next quarter on this. Our NPD pipeline continues to be robust. Talking about the outlook, electrification trend is aiding growth to wiring harness and non-wiring harness business for us. To add to this, the addition of customers and products will also be a strong positive in the years to come. On an overall basis, considering all positives, we revise our growth guidance for this year from 30% to more than 40%. With this, we are happy to answer all the questions. Thank you.
Moderator: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and then two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Again, to register for a question, you may press star and then one. The first question comes from the line of Nitin Arora with Axis Mutual Funds. Please go
Nitin Arora (Axis Mutual Funds): Hi, sir. Good evening. Thanks for taking my question. Just on your capex guidance, which is increased. Can you
Moderator: I'm really sorry to interrupt, Nitin, sir. You're sounding slightly muffled. If you can use the handset, please.
Nitin Arora (Axis Mutual Funds): Yeah. Am I audible now?
Moderator: Yes. Yes, sir. This is much better. Yeah.
Nitin Arora (Axis Mutual Funds): So, sir, the question is on the capex side, which you have you know upsized for this year. Can you throw some light, is it predominantly the EV wiring harness, high voltage, or is it also towards ICE? If you can just throw some light how how you thinking about this capex or some new customer linked to multi-link. And yeah, so that was the first question. Yeah, please go ahead, sir.
Rahul Dhoot (Dhoot Transmission Ltd): Yeah. Hi, hi Nitin ji, Rahul here. See, the point is that as earlier we had told you that we are looking at probably a 20%-25% growth on the EV side. But the 100% growth which has come in was not expected, and and the customers are still very bullish on it. We've got quite a lot of guidance on next year volumes. And we have to be ready for those volumes. And this is across all our product verticals, whether it is wiring harnesses on the ICE side, EV side, whether it's on the battery manufacturing side, whether it's on the electronics side, or on the multi-link side. So basically, if we do not increase our capacities, we're already running at full capacity, and we need to look at a better a better year a better year years in terms of capacity in the time to come. So this is the this is the reason why we have you know kind of grown on the on the the capex.
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