# 1. Financial Performance ## A. Key Figures * **Stand-alone Revenue:** ₹1,957 Cr Q4 FY25 (-0.3% YoY) · ₹7,893 Cr FY25 (+3.7% YoY) * **Consolidated Revenue:** ₹5,150 Cr Q4 FY25 (+14.7% YoY) * **PBT (ex. CCPS gain):** ₹327 Cr Q4 FY25 (+2.8% YoY) · ₹975 Cr FY25 (+0.5% YoY) * **ROCE:** 44% * **Free Cash Flow:** ₹225 Cr Q4 · ₹397 Cr FY25 (55% of PAT) * Dividend: Interim ₹2/share paid · Final ₹1.5/share recommended ## B. Revenue Growth * **Divergent Trends:** Stand-alone revenue flat YoY with modest full-year growth, while consolidated revenue posted strong double-digit quarterly growth. * **TI Clean Mobility Momentum:** Achieved best-ever Q4 top-line, contributing to group-wide expansion and **160% YoY revenue growth** across all four businesses on **7,540 units sold** in FY24. ## C. Profitability Trends * **Core Profitability Resilient:** Underlying PBT remained stable YoY despite operational headwinds, with minor growth in both quarterly and full-year results ex. fair value items. * **Fair Value Volatility:** Standalone PBT boosted by **₹569 Cr gain** on TI Clean Mobility investment, while consolidated P&L reflects **₹137 Cr loss** from investor portion of CCPS, distorting headline profitability. * **Operational Loss Path:** Consolidated PBIT loss of **₹107 Cr in Q4** primarily driven by R&D, corporate costs, and professional fees; management expects loss to narrow through **revenue-driven absorption of fixed costs**, not cost cuts. * **Profit Distribution Shift:** Q4 consolidated profit split shifted to **30:70 (owners:NCI)** from 70:30 due to **₹136 Cr CCPS impact**, though adjusted profit attributable to TI rises to **₹183 Cr**. ## D. Balance Sheet Strength * **Strong Liquidity:** TI Clean Mobility holds **₹900 Cr in cash**, with **₹940 Cr currently available** against a ₹3,000 Cr funding target, signaling robust financial runway. * **Dividend Continuity:** Board approved **₹7/share total dividend** for FY24-25, reflecting confidence in core cash generation despite segment losses. * **CCPS Accounting Treatment:** Instrument classified as **financial liability under IndAS** due to variable conversion terms, requiring quarterly fair value adjustments post-funding completion in **June 2024**. ## E. Cash Flow Generation * **High Cash Conversion:** Free cash flow at **55% of PAT** (ex. fair value gain), marginally up from prior year, underscoring operational efficiency and working capital discipline. --- # 2. Segment & Product Performance ## A. Key Figures * **Engineering Revenue:** ₹1,229 Cr Qtr (–3.7%) · ₹5,029 Cr FY (+2.2%) * **Mobility Revenue:** ₹181 Cr Qtr (+20.7%) · ₹670 Cr FY (+0.9%) · **PBIT:** ₹4 Cr Qtr (profit turnaround) · ₹5 Cr FY (vs. loss) * **Metal Formed Products Revenue:** ₹403 Cr Qtr (+4.4%) · ₹1,565 Cr FY (+3.0%) · **PBIT:** ₹164 Cr FY (–12.3%) * **Other Segments Revenue:** ₹244 Cr Qtr (+6.1%) · ₹987 Cr FY (+18.3%) · **PBIT:** ₹48 Cr FY (–26.2%) ## B. Engineering Division * **Resilient Growth Trajectory:** Despite flat YoY revenue and PBIT, the division maintains strong momentum and **improved domestic market share**, with double-digit growth expected in the near term. * **Product Expansion Pipeline:** Extended product range rollout awaits approvals, set to boost future performance. ## C. Mobility Business * **Sharp Profitability Rebound:** Mobility delivered a significant turnaround, swinging to quarterly and full-year profitability on the back of **strong double-digit revenue growth** and cost discipline. ## D. Metal Formed Products * **Margin Pressure Persists:** Despite modest revenue growth, PBIT declined due to **weak margins** driven by sluggish railway sector demand. ## E. Other Segments * **Mixed Performance with Strategic Progress:** While PBIT declined, segment revenues grew strongly, led by the **cycle business turning profitable** and expanding exports; **TI Medical loss attributed to delayed export ramp-up**, expected to recover in 1–2 quarters. * **Operational Full Run-Rate:** All four businesses now fully operational, with full-year contribution expected across the board. --- # 3. Capacity & Utilization ## A. Key Figures * **Nasik Plant Capacity:** **4,000 tonnes/month** (+7–8% engineering capacity) * **Utilization Rates:** **~80%** engineering & metal formed (excl. new plants) · **~85%** MFPD ## B. Nasik Plant Progress * **Accelerated Ramp-Up:** Nasik CRSS and large diameter plants now operational, with customer approvals expected within **one to three months**, significantly ahead of prior schedule. * **Near-Term Full Utilization:** Nasik facility expected to reach **full utilization by Q3–Q4**, driven by import safeguard duties and demand from existing customers. * **Capacity Expansion Pipeline:** Additional capacity additions for tubes and cold rolled strips underway, securing supply for **next two years**; MFPD investments aligned with demand outlook. ## C. CDMO Plant Timeline * **Construction Underway:** CDMO plant build has started, targeting completion by **mid to late Q3–Q4**, enabling mass production ramp-up. * **Commercial Momentum Building:** Customer acquisition for CDMO lab is progressing well, with **scaled commercial production expected next fiscal year**. ## D. Utilization Rates * **High Baseline Utilization:** Engineering and metal formed divisions running at **~80%** utilization excluding new facilities; MFPD at **~85%** despite inherent business variability. --- # 4. Order Book & Demand ## A. Key Figures * **Railway Order:** **₹1,000 Cr** seven-year contract (commences Q4) * **EV Deployments:** **172** heavy electric trucks deployed (out of 206 nationally) · **65** in Q4 alone * **Three-Wheeler Sales:** **7,324 units** FY volume · **1,662 units** in Q4 * **Dealer Network:** **85** three-wheeler dealers (as of Mar-24) · **2–4** SCV/tractor/e-tractor dealers (as of Mar-25) ## B. Railway Order Intake * **Major Contract Secured:** Landmark ₹1,000 Cr seven-year bogie supply deal under Indian Railways’ privatization initiative, marking a strategic revival in the segment. * **Revenue & Margin Catalyst:** Railway business revival expected in Q4 after **two to three quarters of stagnation**, with meaningful contributions to growth and profitability anticipated. * **Sustained Growth Trajectory:** Segment set for strong multi-year expansion after **six to seven quarters of minimal revenue contribution**, signaling a structural turnaround. ## C. EV Vehicle Deployments * **Market Leadership Confirmed:** Dominant position in heavy electric trucks with **~83% of all units deployed** nationally, despite entry of a major incumbent. * **Strong Commercial Momentum:** Record Q4 deployment of **65 electric trucks** and full-year leadership with **172 of 206 total trucks** on road, reflecting execution strength. * **Product Diversification Achieved:** ESCVs and electric tractors successfully transitioned to full operations with **14 and 17 units deployed in Q4**, respectively. * **Three-Wheeler Volume Growth Outpaces Market:** Achieved **116% YoY growth** in L5M category versus **91% industry growth**, preserving market share amid rising competition. * **Sequential Sales Dip:** Q4 three-wheeler sales declined from **~1,800 units in Q3**, indicating near-term demand softness despite strong annual performance. ## D. Dealer Network Expansion * **Aggressive Scaling Underway:** Targeting **over 120 three-wheeler dealers by FY26**, up from 85 as of Mar-24, to support volume growth. * **Rapid Multi-Segment Rollout:** SCV, e-tractor, and tractor segments each targeting **25 dealerships by year-end**, up from **2–4 currently**, enabling nationwide reach. * **Truck Distribution Model:** Maintains direct sales approach; potential shift via **pilot testing of service dealerships** in development. ## E. Industry Volume Growth * **Export Resilience:** Exports held steady at **15% of total sales** despite global headwinds, indicating stable international demand. --- # 5. Product & Technology Edge ## A. Battery Range Leadership * **Market-Leading Range:** TI Clean Mobility offers one of the highest battery ranges in the three-wheeler segment, reinforcing its technology differentiation. * **Portfolio Expansion:** Company advancing battery pack diversification with new variants to broaden customer reach and address segment-specific demand. * **Strategic Capacity Tiering:** IPL Tech to launch lower-capacity battery options to improve affordability and secure **pricing advantage** against rivals. * **Premium Positioning Intact:** Commitment to premium market positioning remains firm despite competitive dynamics. ## B. Microcontroller Indigenization * **Technology Self-Reliance:** Majority of microcontrollers in EVs being indigenized, positioning the company as a rare domestic player with **in-house microcontroller capabilities**. ## C. Product Refresh Plans * **Reclaiming Product Leadership:** Upcoming refreshed three-wheeler passenger variant launch aimed at regaining competitive edge after rival feature parity. ## D. Certification Status * **Europe Market Entry Imminent:** CE certifications for medical devices expected to be completed this quarter, unlocking **export revenue potential** in Europe. --- # 6. Risks & EV Market Challenges ## A. Sales Cycle Complexity * **Extended Sales Cycles:** EV truck segment faces **long lead times** from engagement to deployment, revealing a more complex sales process than expected. * **Multi-Stakeholder Dynamics:** Successful project execution requires institutionalization due to involvement of **charging providers, logistics partners, financiers, and end-users**. ## B. Competitive Intensity * **Rising Competition:** Electric three-wheeler segment seeing increased rivalry from rapid ICE-to-EV conversion, prompting focus on product and cost optimization. * **Cost Discipline:** Prudent fixed cost management within the TI and Murugappa group supports resilience during early-stage volume ramp-up. ## C. End-Use Case Viability * **Validation-Centric Strategy:** Differentiation in heavy electric trucks driven by **successful end-use case validation across six to seven segments**. * **B2B Focus for Scalability:** Beyond three-wheelers, commercial viability must be proven at inception, with initial sales strategies prioritizing **B2B end-use case validation**. * **Three-Wheeler Exception:** Segment has achieved **26% electrification** and operates via established **B2C channels**, contrasting with other EV verticals. ## D. Regulatory Delays * **PLI Scheme Evaluation:** Company is assessing participation in the government’s new PLI scheme for electronic components but has not yet decided. --- # 7. Guidance & Outlook ## A. Key Figures * **Capital Raise:** ₹2,750 Cr CCPS round for TI Clean Mobility (₹500 Cr from TI, ₹2,250 Cr from PE) * **Cash Reserves:** ₹900 Cr expected to fund operations for **1.5–2 years** * **Planned Investment:** ₹300 Cr allocated to core business in FY2026 ## B. Revenue Target * **EV Revenue Milestone:** $1 billion target remains intact for global EV business, encompassing both domestic and export sales, with ambition to be top three in each segment. * **H2 Engineering Outlook:** Improved financial performance expected in second half of the year, signaling recovery or acceleration in core operations. * **Strategic Scale Goals:** TICMPL aims to reach $1 billion in EV revenue within three to four years, supported by strong market positioning objectives. ## C. Break-Even Timeline * **Near-Term EBITDA Targets:** Heavy electric truck and three-wheeler businesses targeting operational break-even in at least one quarter of current fiscal year. * **Phased Profitability Roadmap:** Goal to achieve EBITDA positivity in two out of four businesses by FY2026, though not for consolidated TICMPL. * **TI Medical Recovery:** Expected to return to profitability soon post-delay; no confirmed ROCE target despite interest in **20–25%** range. ## D. Capital Allocation * **Self-Sustained EV Funding:** TI Clean Mobility fully funded; no further capital raises planned, with current reserves sufficient for 1.5–2 years. * **Strategic Investment Priorities:** Capital directed toward TI Medical, CDMO, and core operations, with new opportunities assessed on strategic fit and return potential. * **ROCE Target Framework:** Company targets **>25% stabilized ROCE** across all major investments, signaling high-return discipline. * **Flexible Capex Approach:** No fixed EV capex for current year; investments in Medical and CDMO to follow opportunity size via organic or inorganic routes. ## E. Strategic Expansion * **New Business Incubation:** Exploring creation of an additional business division; no final decision yet. * **Electronics Evaluation:** Not a current focus, but under review due to PLI scheme incentives and growth potential; no decision on entry via Moshine or other platforms.