The shares of complex gear manufacturers gained up to 5 percent in the morning trading session after the company received a new nomination from BMW AG.
With a market capitalization of Rs 902.74 crore, the shares of RACL Geartech Ltd were trading at Rs 837.30 per share, increasing around 4 percent as compared to the previous closing price of Rs 797.10 apiece.
The shares of the company have seen positive movement after RACL Geartech Ltd received a new nomination from BMW AG for the supply of Drive Train Parts for their upcoming Electric Sports Car. This nomination marks the second such nomination from the EV passenger car segment which aligns with the company’s strategy to strengthen its EV portfolio. The commercial production of these parts is anticipated to commence in 2026.
Financial Performance:-
Looking forward to the company’s financial performance, revenue increased by 5 percent from Rs 101.56 crore in Q1FY24 to Rs 106.13 crore in Q1FY25. During the same period, net profit dipped by 40 percent, from Rs 10.21 crore to Rs 6.54 crore.
Future Outlook:-
The management is optimistic about the future, projecting a 20-25% growth in H2 compared to H1, driven by strategic initiatives, robust demand, and operational efficiencies, positioning the company for sustained momentum and enhanced performance in the latter half of the year.
Market dynamic:-
The management observed a shift in customer behavior in the US and Europe, with many adopting a cautious “wait and watch” stance amid economic uncertainties. Major customers reduced orders, driven by inventory adjustments and high interest rates impacting US market sales.
To counter this, the company is diversifying its customer base and product portfolio. It is exploring new opportunities in high-potential sectors such as electric vehicles and agricultural machinery, aiming to mitigate risks and ensure long-term growth amid evolving market dynamics.
Strategic Focus:-
RACL Geartech aims to sustain growth by enhancing operational efficiency, optimizing costs, and utilizing existing capacities for new orders. It remains committed to investing in technology and diversifying its product portfolio to seize emerging market opportunities despite current challenges.
Company snapshot:-
RACL Geartech Limited is an India-based company, which is engaged in the manufacturing of automotive components meant for two-wheeled, three-wheeled, and four-wheeled vehicles. The Company, through its manufacturing units, produces automotive components in the field of motorcycles and scooters.
Written by:- Abhishek Singh
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