Ladies and gentlemen, good day and welcome to Endurance Technologies Limited Q3 and 9 Months FY 2025 Results Conference Call, hosted by Axis Capital. 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 the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nishit Jalan from Axis Capital. Thank you, and over to you.
Thank you so much. Good morning, everyone. Welcome to Q3 FY 2025 Post-Result Conference Call of Endurance Technologies. We are pleased to host the entire management team, senior management team of Endurance. We have with us today Mr. Anurag Jain, Managing Director, Mr. Massimo Venuti, Director and CEO, Endurance Overseas, Mr. Rajendra Abhange, Director and COO, Mr. Satrajit Ray, Group CFO, and Mr. Raj Mundra, Treasurer and Investor Relations. I'll now hand over to Mr. Anurag Jain for the opening remarks, post which we can start the Q&A. Over to you, Mr. Jain.
Thanks a lot. So good morning to everyone. As we look at the broader economic landscape, GDP growth for FY 2025 is expected at 6.4%, which is a downturn from last year's 8.2%, with Q2 marking a seven-quarter low at 5.4%. However, the index of industrial production grew to 5.2% in November, signaling manufacturing recovery. Further, the measures taken in the union budget and in the RBI MPC meeting would leave higher disposable income for discretionary consumption, and this offers us a hopeful outlook for our industry. In India, in Q3 of this financial year, as per the SIAM data, the two-wheeler industry sales grew by 7% compared to Q3 of the previous financial year. Scooters grew by approximately 13.3%, and motorcycles grew by 4.6%.
The passenger vehicle segment grew by 6.6%, while commercial vehicles witnessed a 2.3% growth, while three-wheelers grew a modest 0.7% as compared to Q3 of the previous year. Against this macro environment and the industry performance, I would like to explain various strategic actions in Endurance and their potential impacts on the company's future performance. First, I would like to touch upon our acquisition of Stöferle in Germany. You must have read the announcement, and hence I will not go into the details. This is an important acquisition for us. The company is highly profitable, has good customer presence, and is vertically integrated as they manufacture also their own machines. This, along with our existing presence in Germany, holds significant promise in terms of not only revenues and profitability, but also creating a strong presence with our German OEM customers, leading to higher business and opportunities.
The Stöferle acquisition and the Ingenia Automation company, which was done earlier this year, brings on board in-house machine building and automation expertise, which can also be used in our Indian operations. Mr. Massimo Venuti and I will be happy to take questions from all of you on this topic. Having spoken about Stöferle, and before we go deeper into some of the highlights, I would like to touch upon certain key topics which impact our business. Continuing on Europe, despite the difficult market where the year-to-date new car sales have dropped by 0.4% compared to the same period of last year, our subsidiaries grew their revenues by 16.1% and EBITDA by 22.1%. This is the effect of the astute management of a net positive financial position in spite of investing substantially on new business wins.
The OEM customers in Europe trust our companies in Europe and are considering us for various new business. These business wins, which gave us a growth of 21.8% in revenue and a growth of 27.4% in EBITDA in Q3 financial year 25 versus Q3 FY 2024, are executed with a very robust control on cost and cash. We note with pride that the European operations are managing the acquisition of Stöferle largely with internal accruals and will achieve early payback of the same. I will also have to explain and give you a status update of our important customer, KTM. As you would be aware, certain entities of KTM have filed for financial restructuring, and the progress so far is very smooth.
Ahead of the court hearing on 25th of February of this month, we have clear indications that KTM will soon start operations in the second half of March, and we have started to get schedules. We are positive about the outcome, which is evidenced by our growing sales to the KTM entities in Austria and China. Our sales to KTM India are expected to grow close to INR 120 crores in FY 2026 based on schedules which we have got. We will also be starting sales of braking systems to KTM in India and overseas in the second half of the next financial year, which is FY 2026. As KTM has often given us an opening for our advanced technology products, we also see opportunities for expansion of these advanced technology products to our other OEM clients. The major dimension of our business is our strong business partnership with Bajaj.
While we are growing from strength to strength with all our OEM customers, our sales to Bajaj is always keeping pace with the quantity and quality of revenue earned. From financial year 2022 to financial year which is expected of this financial year, our sales to Bajaj have been growing at a robust compounded annual growth rate of 10.8% in spite of the high base and the content per vehicle, whereas sales to our other OEM customers have grown at a CAGR rate of 13%. Even in the recent quarters, if we remove the effect of commodity price changes, our sales to Bajaj have been growing every quarter in spite of the vagaries of the external demand. The influence of our Bajaj partnership is very positively impacting our inroads into other OEM customers, where we have been securing orders in all our product verticals.
All the OEMs are introducing high-quality models into the market, ranging from the premium high-capacity motorcycles to budget-friendly models, with drivetrains across various options of petrol, CNG, and electric motors. We are happy to know that Endurance is figuring as a key partner in many such new offerings, and we are in various stages of winning orders and nominations, with some orders already won. These are the precursors of the details which I will now explain to you. These will clearly indicate our approach, which is towards keeping our growth continuing in various markets and demand situations. Now, let me update you on significant expansion projects. We are making excellent progress at our AURIC Shendra four-wheeler casting plant. The plant infrastructure is set to be ready by the end of February 2025, with the SOP which is planned for June 2025.
This facility will be a landmark in the Indian die-casting industry, being a first green building with zero waste to landfill. This plant will use 1,100 ton-2,500 ton fully automated die-casting machines with advanced machining and finishing equipment. The state-of-the-art facility underscores our commitment to sustainability and innovation, as we have discussed in our previous calls. For this plant, we have won business from two large global customers. We have won a machined casting order from Dana, with peak annual sales of INR 730 million as they localize an e-Axle for a Mahindra EV. At AURIC Shendra, we have introduced India's first dielectric powder coating service for electric vehicle platforms. The Shendra facility gives us an edge in tapping high-value opportunities in the EV segment.
The other order is for a peak sales of INR 1.5 billion for export to a global renowned OEM with strong presence in the premium segment and the EV segment. We will discuss more details once we have the clearance to do so. Our AURIC Bidkin two-wheeler alloy wheel project too is progressing as per schedule, and we are excited about this as it widens our OEM customer base for two-wheeler alloy wheels, as we capitalize upon the growing demand of two-wheeler alloy wheels in India. Speaking about a new future-ready R&D facility, which is for two-wheeler, three-wheeler, and four-wheeler suspensions, which we call G45 based on its address, we are on track to start this by March-April of this year.
The existing R&D space will then be used for expanding our suspension manufacturing lines, ensuring we continue to meet the growing demand and help in proper growth of our suspension business. The new R&D facility will be a game changer, with a testing facility that is four times larger than the existing one, an office space three times the size for a plant capacity of 220 subject matter experts and R&D engineers, which is three times our existing team size. This expansion aims to leverage the fast-growing automotive market by enhancing our OEM customer trust, share of business, and establishing our leadership in suspension technology. There will be advanced labs for innovation electronics, benchmarking, road data acquisition, noise vibration, and hardness labs, right-hand handling, metallurgy, and FMEA, ensuring that we can offer designs that not only meet, but they exceed the global specifications.
It will serve as a one-stop solution for promoting homegrown future-ready suspension technologies, focusing on affordable innovation and value engineering. By internalizing advanced vehicle-level suspension R&D and validations currently done in-house by OEMs, it helps us to co-create and engineer win-win solutions, solidifying our role as a trusted technology partner to our OEM customers. Now, I would like to focus on our product segments. Please note that the business value from new orders that I will disclose are without including orders from Bajaj Auto. Starting with suspension, I just spoke about the new G45 suspension R&D facility. In FY 2025, so far, we have had orders to the tune of INR 1,413 million of peak annual sales. These are from various OEM customers and for the various platforms. These will signify our increasing expansion within each OEM and augurs well for the increase in our content per vehicle.
Needless to say, as well as perseverance towards quality standards, quick turnaround of new products, value engineering exercises, and strong governance standards are aiding this. Significant in the suspension business is our continued expansion of the inverted front fork business, with wins of the TVS Apache model, 250 CC Plus models, among others. We also want orders for e-scooters. On braking, this is our most exciting segment, and we continue to enhance capabilities. We have won INR 1,710 million of new orders till date in FY 2025 from multiple OEMs. With these inroads, we will now be supplying to every prominent two-wheeler OEM in the country. Just reminding you that our capacities at present are 6 million two-wheeler braking systems, 8 million two-wheeler brake discs, 1.5 million three-wheeler tandem master cylinders, 1 million three-wheeler drum brake assemblies, and 650,000 two-wheeler ABSs or the anti-lock braking systems.
Key capability and backward integration projects will also aid in lowering our costs, and better serviceability are also being implemented. Our range covers vehicles right from 100 cc all the way till 800 cc. We have also kickstarted a project to manufacture the four-wheeler brakes. In the transmission segment, in spite of increasing electrification, we continue to win new orders for our clutch assemblies. A couple of significant new wins are the clutches from Hero MotoCorp and Royal Enfield, which will help us to increase our annual sales of one million more clutch assemblies and increase sales value by more than INR 1,000 million in the next financial year. We continue to invest on the improvement in quality and performance of our clutch assemblies. We now have orders for our Adler technical assistance with clutches.
As far as the driveshaft transmission business is concerned, we have won INR 450 million of new orders in this year from two key OEM customers. Despite this being a new vertical with no two-wheeler end use, we soon expect to hit an annual revenue run rate of close to INR 1,000 million per annum, including orders from Bajaj Auto. We expect to start SOP also for four-wheeler driveshaft in the next financial year. In our aluminum castings business, we continue to win orders in castings. These orders are across two-wheeler, four-wheeler, and non-automotive business, and also for the EV electric vehicle business. I've already spoken earlier about the AURIC Shendra orders, which we have won. On the embedded electronics, we are accelerating the development of innovative mid and high-voltage BMS platforms, which are battery management system platforms that cater to a broader range of market segments and geographies.
Our XT Safe and the HT Safe products, which are under development, incorporate functional safety measures and draw on our existing XT platform know-how. The XT Safe BMS platform addresses application segments ranging from cars, buses, and trucks to grid-scale storage applications, while the HT Safe focuses on high-performance two-wheeler, three-wheeler, and four-wheelers, as well as smaller backup and UPS systems. These solutions are in collaboration with semiconductor partners to offer cost-effective and reliable platforms for diverse market requirements and regions. Beyond the battery management system, we are in advanced stage for a suite of motor control and power electronic solutions. The expansion of our product lineup opens up opportunities with new OEM clients in both established and emerging markets, while simultaneously strengthening our business growth with existing partners. In the recent past, we have seen a slew of announcements by the two-wheeler OEMs, including introducing the electric vehicle models.
We have always maintained that our product range, except clutch assemblies, are EV agnostic, which is almost 96% of our range, and used in both EV and internal combustion engine models. I will briefly touch upon our recent sales and order wins. Our sales to electric vehicles in quarter three FY 2025 was INR 722 million, which is about 3.5% of our sales. This is close to double our quarter one FY 2025 sales. We have had orders for electric vehicles from various OEM customers amounting to INR 9,631 million since FY22. Now, this is after considering the removal of INR 1,580 million of business wins from five electric vehicle OEMs who we don't feel due to their financial issues can give us this business. So INR 9,631 million is the net figure.
This is across all our products with aluminum castings and brakes, which are leading with INR 4,273 million and INR 3,524 million business of one, respectively. Suspensions orders stand at INR 1,305 million and transmissions at INR 529 million. We also state here that given the volatility of the markets, particularly for electric vehicles and the status of some of the OEM clients, we further tone down these numbers for our internal business plans. We are also actively quoting and pursuing the request for quotations for an annual sale value of INR 32 billion from various OEM customers other than Bajaj. Across all our product segments, we have also included a significant percentage for electric four-wheeler customers. Our subsidiary, Maxwell, has also received orders to the extent of INR 2.5 billion. This value is after removing business from customers who have seen headwinds such as sharp fall in market share.
You are aware that we have won large value orders in electric vehicle and hybrid space also at our European plants. Overall, we are well poised to make the best shift in power trades from IC to electric vehicles. On the four-wheeler front, Endurance is strategically working to capitalize on both the IC and the EV markets with a focus on niche and proprietary products. One of our entry strategies is to enter into technical assistance agreements with global players where we leverage expertise to enhance our offerings. We are happy to state that one such technical assistance agreement for four-wheeler suspension has been signed last month with the leading Korean entity. This technical assistance agreement will give Endurance Technologies the complete capabilities to manufacture and sell shock absorbers and struts to a large range of four-wheelers.
We are pursuing opportunities to enter into joint ventures with existing global players and thus combine our strengths on technology, cost competitiveness, and the growing Indian market. These pursuits are at various stages of maturity, and we will announce the same as and when they are finalized. We also tap into our own R&D capabilities to pioneer new solutions. To this end, we have and are modernizing and enhancing our R&D facilities at G45 to cater to the four-wheeler requirements also. We have added to our skill inventory and many subject matter experts to our roles in the field of our target four-wheeler products. Our discussions with global leaders are advancing well, and we are optimistic about concluding business awards for three to four products within the next six months. This aligns with our strategy to increase the share of four-wheeler as a segment in our total income.
At present, our focus is on four-wheeler suspension, four-wheeler brakes, four-wheeler driveshafts, four-wheeler alloy wheels, while we continue to increase our four-wheeler casting and aluminum forging business in the four-wheeler domain. We are implementing several key strategies to elevate our presence in the aftermarket business. We have just embarked on a special project which will span over the next two years to multiply our aftermarket sales. This is being done in collaboration with one of the top global consultancy firms. The approach is to operate all levers, namely the market spread, new product introductions, merchandising, exports, and four-wheeler products to achieve the targeted growth. We are revamping our distributive policy to ensure it aligns with our growth objectives and fosters strong partnerships.
Our focus on retailers and mechanics is more targeted now with a focused milestone-based incentive plan while addressing critical pain points like inventory management to improve the service levels and satisfaction. We are actively identifying and planning to introduce new value-add products, which are trading products, areas for both two and four-wheelers, expanding our product portfolio to meet evolving market demands. We are also targeting and aiming to increase our market share in high-potential regions, both in India and our export countries, by leveraging our understanding of the local market dynamics. Our efforts to improve product quality and market share in value-add products within our existing geographies are yielding good results, reinforcing our commitment to excellence and customer satisfaction. I would like to touch upon our order wins till date of this financial year. This is excluding Bajaj Auto.
This year, we have won a total of INR 7,806 million of business, including the business win secured for the AURIC Shendra plant for four-wheeler castings. We are actively pursuing, like mentioned earlier, business worth INR 3.2 billion, which are in the form of requests for quotes in our hand. Out of the INR 7,806 million business won this year, our aluminum casting business led from the front and won INR 3,779 million of new orders till date this year. This was from various customers, including Tata Motors, Valeo, Aether, HMSI, Piaggio, and others. On suspension, we have won INR 4,913 million of new orders, the OEM customers being Hero MotoCorp, HMSI, Kawasaki, and TVS. I would specifically like to mention that 50% of this INR 7,806 million business won till date this year is for electric vehicles. Also, 40% of the INR 7,806 million business, which has been won, is for four-wheelers.
Our brakes business won new orders of INR 1,710 million, which includes orders from Hero MotoCorp, Honda Motorcycle and Scooter India, Mahindra, Royal Enfield, TVS, and others. On the transmission clutch assemblies, our order wins amount to INR 524 million in this financial year. We have also won substantial orders for our driveshafts worth INR 450 million, mainly from Mahindra. It would be worth mentioning that we are moving towards supplying all our product segments to all OEMs. Further, close to INR 14 billion of new orders won in the past since FY 2021. I expected to have the SOP by this financial year and around INR 10 billion. I expected to have SOP in the next financial year. At Endurance, our focus on people and work culture is absolutely important to our success. We have been actively right-sizing our organization pyramid to ensure agility and accountability.
On talent acquisition, we are focusing on strategic workforce planning at all levels with a focus on gender diversity, which is at 20% of our total hiring. Our Women to Women program is focused on empowering our women employees with workshops on self-care, self-awareness, and financial wellness. Our potential management framework is robust, including development centers by top consultants, career discussions, and mentoring high-potential employees for leadership roles. We also launched the Succession Program, which is a capability-building program for reskilling and upskilling programs to prepare our workforce for facing future challenges. We also have wellness and happiness programs by way of health talks, yoga and mindfulness, diversity weeks to help promote physical, mental, and emotional well-being. On the ESG front, we are actively working on a net zero target in collaboration with CII, aligned with SBTI guidelines.
I'm happy to say that we have achieved a carbon neutral percentage of 43% and are well poised to achieve our target of achieving a carbon neutral percentage of more than 50% by FY 2030. The life cycle assessment for five products is in progress, conducted by TÜV SÜD. Validation of six zero waste to landfill sites is underway through an external agency. We have increased sourcing of captive solar power from the SPV that has been formed with Tata Power since October 2024. The capacity at this SPV has doubled to 25 megawatts. We have achieved significant improvement in specific thermal and electric energy consumption, along with achieving 91% and 90% hazardous waste recycling. Through our CSR arm, which is the Sevlan Trust, we are committed to fostering sustainable development and mutual growth with our stakeholders, with a special focus on education, livelihood generation, health and sanitation, and environment.
We have transformed 51 schools with solar energy, digital literacy through our World on Wheels program, touching over 17,500 lives. Our efforts have led to higher attendance and better education outcomes with a focus on hygiene and health. We have empowered over 3,500 farmers with sustainable agriculture training and supported hundreds of youth through our Eco Vocational Training Center at Aurangabad by achieving over 75% employment for nearly 1,800 youth. Our health program has reached 42 villages, treating over 15,000 people, and we have built over 2,300 toilets to improve sanitation. On the environment front, we have enhanced water storage capacities through canal deepening and created lush biodiverse forests across 38 acres, planting over 300,000 trees. I would also like to mention some of our special projects.
Our Balwadi School project in Aurangabad is nurturing the young minds of underprivileged children, while our Kagzipura Museum project will celebrate the art of handmade paper. The Paithani Revival project is a tribute to ancient silk weaving, offering new opportunities for weavers. On the awards front, I'm happy to tell you that our IPR team has won the CII Intellectual Property Award in 2024. Our two brake plants have secured platinum and gold quality awards at the recently held Bajaj Auto Vendor Meet, and recently, on the 11th of this month, our company won the Innovation Award at the Mahindra Vendor Meet. I will now talk about our European operations. The story there has always been one of capable business leaders, intelligent investments, and strong balance sheet management. We achieved growth in sales and also in profits in spite of a flattish market in Europe in Q3.
In this quarter, new orders to the tune of EUR 12.4 million were won. This included large orders from Volkswagen and BMW, both in the hybrid segment. As mentioned earlier, Stöferle acquisition will give us up to EUR 80 million in sales and EUR 15 million-EUR 16 million of EBITDA. This gives us significant strategic advantage when we acquire a profitable company like Stöferle, and that we get access to a larger OEM customer base. Also, the key skills and capabilities of Stöferle will give us significant synergies and have major growth opportunities for us in our German business. The German region experienced inflationary pressures due to high energy costs, which the management is finding mitigation actions for. Now, coming to financials, the quarterly information has been uploaded at the stock exchanges last evening, along with our presentation explaining the numbers. I will, however, highlight some key numbers.
During this quarter, the company performed well and turned in revenues of INR 21.9 billion and INR 28.8 billion for the standalone company and the consolidated company. This translates to a year-on-year growth of 9.2% and 11.3%, respectively. The company earned a profit after tax of INR 1.57 billion and INR 1.84 billion for the standalone and consolidated company. This is a growth of 18.5% and 21.1%, respectively. This expansion of margin is achieved through lower material costs in India and lower other costs in Europe. It is important to note that our European companies have overcome many odds to post an impressive year-on-year growth of 21.2% in quarter three revenues and a growth of 26.7% in quarter three EBITDA.
I would like to also mention specifically that our consolidated earnings per share has more than doubled from our IPO year, which was FY 2017, or INR 23.48 earnings per share to INR 48.38 earnings per share in FY 2024. Further, for the trailing 12 months, the earnings per share is at INR 56.97. With these opening remarks now, I would like to invite questions from all of you. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. We'll take our first question from the line of Aditya Jhawar from Investec. Please go ahead.
Yes. Thanks for the opportunity and thanks for the elaborate opening comments.
So my first question is on suspension. So congratulations on the big breakthrough on suspension. Can you just talk a little bit more about it in terms of the tech tie-up that we have done? The outcome of this tie-up can be used for other OEMs as well. And if you can give some timelines, order size, and capability required for this project.
Yes. So I think I will request Mr. Rajendra Abhange, our director and COO, to speak on this topic. I think he will give a better view as he's in touch with all the customers. So Mr. Abhange, can you just throw some light on the four-wheeler business of suspension with this new technology agreement we have with the Korean company?
Yes. So Aditya, first of all, thank you for asking this very relevant question.
I think the investor community has always been very curious that what do we do in the four-wheeler proprietary product line where our presence wasn't there so far. This breakthrough of getting into suspension has happened very recently. We have a global company who is having diverse interests other than suspension as well, but they are market leaders for one of the largest car manufacturers globally. We have been able to make a deal with them in terms of providing end-to-end product technology. You see, the suspension for a four-wheeler is a very complex product. The entire vehicle stands on this particular part, and it is supposed to do many things other than absorbing shocks. Okay? It's also supposed to do the vehicle dynamics. This high-end product technology is only possible if we have a very formidable partner.
We found one company in Korea, and this news is very exciting for most of the OEMs. Wherever we have gone, they have been very happy about it. The suspension space in India is very less crowded. There are not many players. Hardly one or two players are there, and that too, OEMs are looking for very formidable companies who can offer products that are affordable and they are also world-class. The current status is that the license agreement has been signed successfully, and OEMs are offering us the tech review discussion that's going on. Our team is very busy in finalizing the product configuration. If all goes well with them in terms of commercial and techno-commercial side, we are going to set up a greenfield facility very soon, which will be probably India's finest shock absorber company. That much I can assure to the investor community.
Thank you.
So just to know, so as of now, we are in discussion stage with OEM for orders. And the greenfield facility, any CapEx that you'd like to talk about, and where would it come? Would it be Chennai or any other part?
So Mr. Jain probably can answer the facility in the event you would like to tell.
No. No. No. See, we have finalized the location, but I think I may talk about that in the next call. Okay? We have finalized it. We have the land also for it. And there are certain things ongoing. As we have not told the customers yet, okay, we have maybe mentioned it. Once we finalize with the customer the location, then it's the correct thing to tell all of you.
Understand. The second question is on Maxwell.
The performance has been quite encouraging both on growth and profitability perspective. If you can throw some light on what kind of customer base currently we have and any new addition in customers that we have seen recently, and what is the plan of ramp-up of Maxwell business in the next one to two years?
I will request Mr. Rajendra to throw light on this.
Aditya, we have been focusing very closely into Maxwell's operations. What the most important thing we have been doing is the R&D function of Maxwell has a significant level of product in their pipeline, which caters to a wide range of applications. As you see, right, what we now see is that there is an improvement in the results of the company.
We are focusing on projecting this product range, which goes for multiple customer configurations and which have enhanced safety in them. Right now, we have only one or two customers to whom we are supplying on a mass production basis. But the quotation to a wide range of customers who produce three-wheelers to produce two-wheelers is in its various stages of becoming commercial businesses. That along with the motor control unit, which we spoke about earlier, and some ventures which are aligned to the battery management systems are also in progress right now. And we do see good interest from some customers on these product lines, and we should see growth going forward. And as and when they become mature, we will be very happy to make that announcement.
Yeah. That's helpful. My final question is for Massimo.
Europe performance was pretty solid, very, very encouraging to see the trend. If you can talk about any new incremental orders that came for execution in this quarter, or if you can just explain the reason for such a strong performance in Q3, and if you can particularly talk about the outlook for our European business and overall industry for the medium term, that would be good.
Okay. So the situation in Europe in terms of the market is not very good. As you know, the demand is very weak. In nine months, the volume has been stable compared to the previous financial year. But let me say, as Endurance, we are in a different position thanks to the acquisition of the last five years. Please consider that we acquired EUR 244 million. We invested EUR 160 million in the last five years.
And so the future, from my point of view, is absolutely positive. I'm optimistic for the next quarter. We grew double digits in the past three quarters, and the expectation for the future is more or less the same. For sure, the acquisition of Stöferle can reinforce our position with our customer because it's absolutely strategic. And let me say, I want to underline that this acquisition is part of the strategy started during the COVID period, as in any acquisition. It's not a decision of the last two months. And let me say that the process of acquisition is not finished. Every month, starting from 2022, with our colleague in India, with Rohan Jain, we have had several meetings to discuss the acquisition process to reinforce our product and customer portfolio.
And in parallel, every month, with Rohan Jain, we have several meetings now, also for sure with Ingenia, to share our expertise with our Indian plant and to quote profitable new business for Europe and also for India. We don't want to lose opportunity to grow. This is the reality. And let me say, you will see in our new plant in India for automotive and automotive components, we are installing a high level of technology and automation, state-of-the-art technology. And this is due to the acquisition that we have done in the last five years in Europe. And I repeat, this is part of the strategy that started during the COVID period. This is the only reason why Endurance in this moment is performing very well compared to the previous year.
Please, I want to underline that we closed the previous quarter with 21% increase of turnover, 27% of EBITDA, and 17.5% of net result. These are results that are possible only because we acquired a lot of business in different segments. When we acquired five years ago, seven years ago, business in the electric, everybody told me, "You are crazy." But now, on top to the existing product range in the internal combustion engine, we are performing very well with the high-level profitability and with a level of technology that is not reachable for everybody because you have to spend a lot of money. Please, I underline EUR 160 million of investment in the last five years. I'm not finished. So let me say, I'm absolutely optimistic for the future months and for the future quarter.
That's very good to hear. I'll fall back in queue.
All the best.
Thank you.
Thank you. We'll take the next question from the line of Jinesh Gandhi from Ambit Capital. Please go ahead.
Yeah. Hi, sir. My question pertains to, firstly, on the four-wheeler suspension agreement which we have done. So there will be anchor customer in the form of Korean OEMs. Just any inputs on whether that anchor customer is currently having single source of supplies for suspensions and will be getting a second source supplier, or how should one think about that?
See, we will definitely be a second source supplier unless there are some new models looking at how we do in performance in future. But right now, definitely, the customers we enter in India will be as a second source.
Okay. So they currently only have a single supplier of suspension.
Yes. Yes. Yes.
Okay. And secondly, you also talked about the four-wheeler braking business.
So any inputs on who's the technology partner and how should one think about the ramp-up in that segment as well? Because that, again, is a very large opportunity.
So I think this, maybe as we go along, we will share more and more data. But we will definitely, I think, start the brakes business. Maybe our target is the last quarter of the next financial year, but because it takes time for testing and development. But that is something which is already at an advanced stage, and that's going to happen for sure.
Okay. And do you have a technology partner in Europe? This is the.
The initial line is not very clear. Can you use your handset mode, please?
Sorry. I'm on handset mode only. But yeah. So is there any technology partner for four-wheeler braking, or we have done it in-house?
For the technology, for the high-end braking systems will come from BWI. Who's already our partner, as you know, for the two-wheeler areas?
So they'll be the partner. And we've already talked to them. So we are at a very advanced stage for that.
Jinesh, does that answer your question?
Yeah. I'll come back in queue. There is some issue with my line. Thanks.
Thank you. We'll take our next question from the line of Shagun Beria from Anand Rathi. Please go ahead.
Hi. Am I audible?
Yes. I can hear you.
Yeah. Thank you for the opportunity and congratulations on a good set of numbers. So on the recent acquisition of Stöferle, can you just help us understand and elaborate more on what this acquisition brings to the current business in terms of products, technologies, and customers?
And also, how should one look at the revenue growth for this entity over medium term and also the EBITDA and PAT profitability?
Okay. Sure. So I will request Mr. Venuti to answer that question. It's on Stöferle.
Okay. So first of all, on 12th of December, we signed the SPA with the Stöferle family. Now, we are waiting the confirmation from the authority of antitrust in Europe because this is a strategic customer supplier for our customer. And so, as I told you before, as Endurance, we reinforce our position in one of our major customers in our portfolio. And so we are waiting the answer from the authority. But I presume that within the end of this financial calendar year, we can reach the closing. The company is a strategic competitor of Endurance, was a strategic competitor of Endurance in the transmission component.
And they have a high level of technology due to the fact that they produce the machine. And so it means that this is absolutely important for us because, as you know, we invested a lot of money in the last period of time, starting from greenfield with new projects. And now, inside of our company, we will have also the expertise to reuse the existing production capacity. This is absolutely strategic for us in parallel with the acquisition of Ingenia that can improve the automation in the process. The company, as Mr. Jain told you, a total turnover of EUR 80 million and EBITDA that is more or less 18%-20%, EUR 15 million-EUR 16 million of EBITDA. The company was absolutely cash-free. And the acquisition will reinforce our position in Germany. It is becoming a market very difficult because you can be competitive only with high level of volume.
The product portfolio of Stöferle is very similar to the existing portfolio of Endurance. It means that they are in 60% of their product range sole supplier, and in the rest 40%, they were competitors of us. And so it means that we reinforce the product portfolio, and we will increase our sole supply chain with our customer. We will become sole supplier for 80% of our product range in Endurance. This was the strategy, and this was the reason why we decided, as I told you three years ago, to focus on the potential acquisition of the company. For sure, now the moment is the correct moment, the right moment, also because the family Stöferle understood very well that in this world, the only possibility to survive is to make synergy with a strong partner.
And they are very happy because the feeling with the team in Germany, in Massenbachhausen and in Lauchheim, the new plant, is absolutely positive.
Okay. Thank you. That's helpful. My next question is on the improvement of the gross margin quarter on quarter despite lower state incentives. So you had mentioned earlier that INR 80 million state incentives will be provided for H2. Will that be booked in quarter four?
Actually, we couldn't hear you clearly.
Hello? Yeah. Am I audible?
Now it's better. 80% continuing to Massimo on this margin getting added in Q4, right?
Yes. Yes. So basically, the state incentives that you had mentioned earlier that you know INR 80 million, would that be booked in Q4?
So we are at a stage where we have submitted our applications, and our documentation is complete.
We are waiting for the eligibility certificate from the government, and it will be subject to the receipt of eligibility certificate that we would book any amount in Q4. And I can only tell you that our applications are complete, and we are at an advanced stage, but we have to wait.
Okay. Got it.
So we'll let you know once we get it. We'll let you know. Yeah.
Okay. Got it. My next question is about the TLA that you mentioned with the Korean player for four-wheelers and suspension. So can you talk about this partnership as we didn't have much presence in four-wheeler suspension? And which are the key customer wins that are expected from this TLA?
I will request Mr. Rajendra Abhange to speak on this. But the customers, we are not allowed to mention the names yet.
They are a bit sensitive to it because of the competition. So I cannot tell you the customers, but Mr. Abhange can tell you about the relationship, technology, I mean, whatever he can say.
Yeah. Okay. Thank you once again. I really appreciate the investor community's interest in the suspension business which we are going to get into. This Korean partner has been handpicked and identified with a lot of internal deliberations that who is the right company who can work with us in India and provide the niche and affordable technologies. You see, India market in four-wheeler is very cost competitive, and we have to be mindful of the fact that we cannot bring something which is a rocket science, something that will not sell in the country. The average price of a car in India is close to $10,000, which is very, very low.
But the demands of the product are extremely high. So in order to meet such diverse requirements, we needed a partner who is actually going to help us in meeting these requirements. There are already some formidable players. I think one player is definitely very strong in India. And as Mr. Jain has said, we will be the second source in most of the OEMs in India to start with. But let me tell you that for the new platforms, we will get RFQs very soon where we will be the first supplier. And this company's name is so formidable, the OEMs have absolutely no hesitation to work with Endurance. Does it answer your question?
Yeah. Yeah. That does. Just my last question. Can you also talk about the new or large or rather getting to INR 2.4 billion for e-four-wheeler applications from the likes of Valeo and Yazaki?
Yeah.
You are talking about our new project, AURIC Shendra, which is starting in June 2025. So this plant, the orders which we have got, it's from Valeo. And there is, of course, a very large customer whom we cannot name, which we got a INR 1.5 billion business. And as we talk, we are talking to others. And as we get the orders, we are allowed to speak about it. We will talk about it on these investor calls. We are at an advanced stage with even other customers. So right now, the business which has been won for the AURIC Shendra plant is INR 2,200 million. And this will be increasing because we have targets. And of course, our focus was to get into customers we don't have, exports, try and improve our profit margins in the casting business.
We are very, very excited about this move because we are a very strong player. As you know, we are buying almost I mean, we produce I mean, look, we need almost 120,000 metric tons of aluminum. We are the largest in the country as far as aluminum die-casting is concerned. We need strong engineering capabilities, a tool room. This Mahindra award we got for innovation, which was two days ago, was on the hydraulic lifter which is used behind the tractor. It used to be a cast iron part. I think it was a 30 kg. We have lowered the weight to, I think, 4 kg, 4 or 5 kg. Huge saving, getting new opportunities. We're looking at our strengths. We are very excited to be in the new area, new customers, export customers, higher profit margins.
I mean, so I can only tell you that this is a very high-focus area for us. And see, luckily, these orders, like I said, are mainly for EVs. That is the exciting part. And so we are in a very good space. And so you'll see. So as we go along every quarter, we'll share more and more with you.
Okay. Thank you so much for answering my questions. And this was helpful.
Thank you. We'll take our next question from the line of Pramod Amthe from InCred Equities. Please go ahead.
Yeah. Hi. Thanks for taking my question. So in continuation of the same e-Axle discussion, I wanted to understand because traditionally, the conventional transmission used to be made by four-wheeler companies in-house. So this completely opens up a new opportunity for you because of EV, one. Second, what is the content you are supplying to the e-Axle?
Because what type of parts you have won and what is the scope of expanding this content within the e-Axle? Because many of the players are yet to localize e-Axle in India.
So I would like to clarify. We are not going to supply the e-Axle. We are supplying the die-casting machine parts for the e-Axle to Valeo, who will supply the complete assembly to the Mahindra EV. So ours is still an aluminum casting business.
Okay?
It's not an e-Axle business. And so just to clarify, we are not getting to e-Axles. We are still in aluminum die-casting, supplying to e-Axles to Valeo, which is the supplier to Mahindra for the e-Axles.
Yeah. But at least earlier, all these things used to be in-house. So people used to do it, even those castings in-house. So hence, I thought.
But is there a scope for you to move up considering the aluminum content is higher?
There's a tremendous scope. All the customers we are getting into, the scope is just tremendous. You can't imagine. And the best part about metals is to be in a metal industry. I've mentioned in the past calls also. Whether it's EV, it's IC, it's hybrid, there's a huge requirement because aluminum is a lightweighting material. And why we went into more of export-oriented and these kind of models is because we want to increase our margins in the aluminum casting business. In fact, our focus is if we can be higher than proprietary business. I'll be very honest about it.
Okay.
And further to this four-wheeler suspension, considering that many of the four-wheeler OEMs are very closely working with their own country-based partners, and India is more ruled by Japanese than the Koreans, so does it restrict your market presence, the suspension which we'll be addressing because of the partner?
No, I don't think so. I don't think so. I mean, we are very optimistic. We are in touch with many companies, including also our Japanese. So we'll make all efforts to see that we can make inroads based on our cost-competitive technology products and the performance which we will offer. So we will do our best to see that the Korean entity doesn't come in the way of the Japanese companies.
Sure. Thanks a lot, David.
Thank you. We'll take our next question from the line of Jinesh Gandhi from Ambit Capital. Please go ahead.
Yeah. Hi, sir. I'm audible?
Not very clear, Jinesh.
Is that better now? Hello, Jinesh?
Yeah. Is it better now?
Yes. Please go ahead.
Yeah. Mr. Jain, my question was regarding ABS for two-wheelers. Can you talk about the progress with respect to how is acceptance of our product with customers beyond Bajaj and Ather in the sense that where are we in terms of RFQs and testings and those things?
See, I will not give you the customer names.
No, that's fine. Yeah.
But I can tell you Bajaj and Royal Enfield have been our historic customers. And we are in touch with all the listed OEMs. But I can only tell you there are two other customers we are in quite an advanced stage. And that's more for the dual-channel, of course, it's there as well as single-channel.
We want to launch a dual-channel ABS, which we hope to do, if not in this quarter, but in the next quarter. So it will be an FY 2026 quarter one.
Got it. Got it. And second?
ABS, right? No, no.
Any debt which that company has?
Sorry?
Debt at Stöferle? Stöferle. I'm asking about Stöferle.
Yeah. So what is your question on Stöferle?
Does it have any debt on its book?
It's got no debt. As I told you before, the company is cash-free. The agreement is to buy the company without cash and without debt. As I told you, this is one of the most profitable companies in the European market. We are seeing about, as I told you, EUR 15 million-EUR 16 million EBITDA considering EUR 80 million of your turnover, for sure, due to the fact that they do only machining.
But as you know, machining for us is the added value of our process. And in the future, we will decide for the potential verticalization also with the high-pressure die-casting component. But we will buy the company without financial debt.
Got it. Got it. Great. So thanks and all the best. Thank you.
Thank you.
Thank you. Ladies and gentlemen, we'll take that as the last question for today. I now hand the conference over to management for closing comments. Over to you, sir.
Yes. No, thank you very much. No further comments. I mentioned that in my opening remarks. So I want to thank everybody for their time on this call. Thank you.
Thank you. On behalf of Axis Capital, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.