Lets breakdown the business of #RACLGeartech
An In-Depth Thread ๐งต
An In-Depth Thread ๐งต
Q. What does the company do ?
A. RACL Geartech operates in Auto Ancillary industry
And makes products like Transmission Gears, Shafts , Cranes, Winch etc
A. RACL Geartech operates in Auto Ancillary industry
And makes products like Transmission Gears, Shafts , Cranes, Winch etc
Q. Who are the customers of the company ?
A. As the company operates in an auto ancillary space , Its customers will be OEMs like Scooter, Cars , Tractor etc manufacturers
A. As the company operates in an auto ancillary space , Its customers will be OEMs like Scooter, Cars , Tractor etc manufacturers
Q. What was the history of the company ?
A. The history of the company in one infographic -
A. The history of the company in one infographic -
This shows that the company was able to whole turnaround
From being Bankrupt at one stage to now having a Target of reaching revenue up to 500 Cr by FY25
From being Bankrupt to having customers like - BMW, Kuboto, Yamaha, KTM, Honda
From being Bankrupt at one stage to now having a Target of reaching revenue up to 500 Cr by FY25
From being Bankrupt to having customers like - BMW, Kuboto, Yamaha, KTM, Honda
Customer list of RACL Geartech -
Their customer are very sticky in nature , That means that they don't leave RACL Geartech due to its Moats
Its Moats are -
1โฃ R&D
2โฃ Tech Innovation
3โฃ Product Quality
Lets discuss them -
Its Moats are -
1โฃ R&D
2โฃ Tech Innovation
3โฃ Product Quality
Lets discuss them -
1โฃ R&D -
15% of their Employee Costs is R&D with the customer
2โฃ Tech Innovation-
Initially they started Focusing on Technology
For the next 7-8 years they only grew for 4-5%
Since then have grown highly
15% of their Employee Costs is R&D with the customer
2โฃ Tech Innovation-
Initially they started Focusing on Technology
For the next 7-8 years they only grew for 4-5%
Since then have grown highly
3โฃ Product Quality
BMW & KTM (Competitors) are Both their customers, This shows that they provide quality customer experience
And a reason for stickiness of customers
BMW & KTM (Competitors) are Both their customers, This shows that they provide quality customer experience
And a reason for stickiness of customers
Company has also 10 year Multi year contract with a Top Electric Vehicle Manufacturer to be their Sole Supplier
As discussed earlier that this company manufacturers Transmission Gears
Many will have a Question that How is it different from Differential Gears?
Here is difference in One Infographic-
Many will have a Question that How is it different from Differential Gears?
Here is difference in One Infographic-
Electric Vehicle Impact -
As RACL Geartech manufacturers Gears , Less Gears are used in Electric Vehicles
Due to that their Volume will be down in this segment of EV but the margin will be high as
Making Gears for EV Requires very high precision
As RACL Geartech manufacturers Gears , Less Gears are used in Electric Vehicles
Due to that their Volume will be down in this segment of EV but the margin will be high as
Making Gears for EV Requires very high precision
And Transmission Gears will add more value than Differential gears which are made by Sona Comstar
Now lets discuss their Financials & Reasons behind so High Operating Profit Margin that their Peers
As We can see all of their peers have OPM% between 9-15%
But RACL Geartech's OPM% in 24% ๐คฏ
As We can see all of their peers have OPM% between 9-15%
But RACL Geartech's OPM% in 24% ๐คฏ
The Reasons behind this high OPM% are -
1โฃ In-House Raw Material Manufacturing
Earlier 100% of Forging Work was from outside now 40% is done In-House only
2โฃ Exports Also improve Margins of the company ie. 70% of revenue comes from Exports
3โฃ Pricing Power is also a reason
1โฃ In-House Raw Material Manufacturing
Earlier 100% of Forging Work was from outside now 40% is done In-House only
2โฃ Exports Also improve Margins of the company ie. 70% of revenue comes from Exports
3โฃ Pricing Power is also a reason
All Reasons for High OPM% Listed in One Infographic
Now Lets discuss the financials of the company -
They are continuously on a Up trend - Revenue , Profit & OPM
They are continuously on a Up trend - Revenue , Profit & OPM
End of Thread
Thanks for reading this thread till end ๐๐
Don't forget to follow Arthavruksha on Social Media Platforms
Thanks for reading this thread till end ๐๐
Don't forget to follow Arthavruksha on Social Media Platforms
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