Alicon Castalloy wins multi year contracts of Rs. 810 crore from global OEMs

Alicon Castalloy Limited has won multi-year contracts worth Rs 810 crore with two leading global automakers and two Tier 1 Global Suppliers. These contracts are spread over a period of 5 years with supplies commencing in stages between June 2020 and December 2021.

The light-weight alloy parts and e-mobility parts will be manufactured at Alicon's facility in Pune, India as well as in its facility in Slovakia in Europe. The scope of work includes manufacturing, quality-testing and shipping to all global manufacturing locations for these OEMS and Tier 1 Suppliers.

Supply to Jaguar covers compact structure parts which are Technology Agnostic as these parts are common across Internal Combustion Engines (ICE), Hybrid Vehicles and Electric Vehicles (EV) platforms. This will result in steady and consistent volumes under multiple scenarios of technology and platform acceptance in the future.

With these orders, Alicon will be supplying its industry-leading and technologically advanced products featuring a light-weight alloy design. The light-weight alloy products will enable significant weight reduction of the vehicles they are used in and provide improved reliability with better performance metrics enabling cost reduction for the consumers.

The Company has also widened its offerings to cater to non-auto sectors such as infrastructure, aerospace, energy, agriculture, defense and healthcare.

The company posted the numbers for the quarter ending September 2019. its consolidated revenue for Q2FY20 came in at Rs. 266.21 crore as against Rs. 306.28 crore in Q2FY19, registering 13.1 per cent yoy decline. The EBITDA for the quarter fell by 7.4 per cent yoy to Rs. 34.7 crore as against Rs. 37.47 crore in Q2FY19, with a corresponding margin expansion of 80 bps. EBITDA margin for the quarter stood at 13 per cent. The PAT for the quarter came in at Rs. 9.35 crore as against Rs. 13.8 crore in the corresponding quarter last year, yoy decline of 32.2 per cent.

Alicon Castalloy has very less liquidity in terms of number of shares in market. Only 10 shares were bought during the day keeping the opening and intra day high prices same at Rs. 349.55.