Fiem Industries Ltd was originally incorporated in India as Rahul Auto Private Limited on February 6, 1989, in New Delhi and was founded by Mr. J.K. Jain. It is engaged in manufacturing and supplying auto components like automotive lighting.
Q4FY23 Updates
Financial Results & Highlights

Detailed Results:
- The company achieved an annual revenue of INR 1858 crores, representing a growth of 18% year-on-year, EBITDA growth by 28% and the profit after tax by 46%
- Q4 FY23 revenues were INR 433 crores, with a degrowth of 10.5% year-on-year.
- Q4FY23 product mix distribution stood as –
A) Auto lighting –32.17%
B) LED lighting – 41.36%
C) Plastic molded parts – 10.35%
D) Rear View mirrors – 11.38%
E) Others – 4.74%
- Revenue break up between segments –
A) OEM’s domestic – 88.70%
B) Replacement market – 7.49%
C) Exports – 3.81%
- EBITDA margins for Q4 stood at 13.91% Vs 12.98% YoY.
Investor Conference Call Highlights
- Brought in a new Director and CEO Mr. Vineet Sahni (Ex-Lumax). He has a vast experience of over 35 years in the automotive industry. He will be driving the company’s growth strategy in the 4-wheeler segment.
- The 2-wheeler industry posted a year-on-year growth of 9.8% in production volumes and 17.7% in domestic sales volumes.
- The EV customer base continues to grow and they now have 28 customers in this segment.
- According to the management the EV industry has seen some slowdown due to the recent FAME subsidy challenges but the long-term growth remains intact.
- Fiem has agreed with Gogoro India to expand its product portfolio in the 2-wheeler EV segment, Gogoro is Taiwan’s largest EV 2-wheeler manufacturer and is a world leader in battery swapping technology.
- The management plans to gradually indigenize in a phased manner, the hub motor assembly and motor control units.
- Gogoro will provide the technical know-how and other support in setting up the manufacturing facilities as well as production, quality, and testing support for the above new product lines. This will significantly enhance the company’s per-vehicle content from INR 15,000 to INR 18,000.
- The decline in the Q4 revenue was due to the 25% drop in the production volume of their key customer, Honda.
- During the year the company did a capex of 54 crores.
- The Board of Directors has recommended a final dividend of INR30 per share for FY ’22-’23.
- Currently, the order book is at 950 crores.
- Going to increase supply to the Hero group, supply started already for one of their models. For the second model supply will start by August.
- The management is pretty confident of outperforming the industry.
- The LED segment is at 49% which will be increasing to 60% in the next 2-3 years.
- The management has maintained the margin guidance at 13.5%.
- The management believes that it is too early to say anything about the growth expected from the 4-wheeler segment but they are very positive about it. And they expect to get a good customer response because of the CEO’s experience and old relationship with the customers.
- The business partnership with Gogoro has a huge opportunity.
- The partnership business with Gogoro will have the same margin structure as that of Fiem.
- The current capacity if utilized fully can generate up to 2300-2400 crores of topline.
- The total EV percentage is currently at 5%.
- Between FY22 and FY23, EV sales have gone up by 2.5x.
- In the next few months, their supplies will start for TVS iQube.
- According to the management, 280 crores of revenue was generated from Yamaha and 38.15 crores from Harley Davidson.
- Domestic and export margins are the same.
- The hub motor and motor controller will start contributing to the revenue from FY25.
- The main reason for the margin to increase was price escalation.
- Over the next 18 months, the management expects INR75 crores to INR100 crores capex to be done with an expected asset turnover of 2x.
- According to management, double-digit growth seems very possible for the two-wheeler industry as rural demand is picking up with financing being available.
- Wallet share for top 4 customers on a yearly basis for FY ’23
TVS- headlamp (68%), tail lamp (86%), blinker (85%), rearview mirror (62%), DRL (100%) and
license lamp (95%).
Yamaha- headlamp (83%), tail lamp (63%), blinker (10%), rearview mirror (82%), and position
lamp (50%).
Suzuki- headlamp (71%), tail lamp (71%), blinker (4%), rearview mirror (100%), and license
lamp (100%).
HMSI- headlamp (40%), tail lamp (76%), blinker (85%), and rearview mirror (100%).
Analyst’s View
Fiem industries did not post results as per their plan, recording 10.5%% revenue de-growth YoY. The management is confident of delivering a double digit- industry outperforming revenue growth rate for the next 2-3 years primarily due to a rebound in 2W sales coupled with a transition towards LED base lighting, a renewed focus on the 4-wheeler segment & increased penetration of EVs in the current automobile market. It remains to be seen how the company will maintain its margins given the global inflationary climate coupled with potential semiconductor shortage & auto slowdown. Nonetheless, Fiem industries is an interesting small-cap stock to keep track of.
Q3FY23 Updates
Financial Results & Highlights

Detailed Results:
- The company saw an excellent quarter with sales increasing by 14% YoY while PAT increased by 37%.
- Q3FY23 product mix distribution stood as –
A) Auto lighting –36.18%
B) LED lighting – 35.59%
C) Plastic molded parts – 11.35%
D) Rear View mirrors – 11.92%
E) Others – 4.96%
- Revenue break up between segments –
A) OEM’s domestic – 89.52%
B) Replacement market – 7.65%
C) Exports – 2.83%
- EBITDA margins for Q3 stood at 13.62% Vs 12.24% YoY.
Investor Conference Call Highlights
- The management states that the recent proposal of custom duty exemption for the capital goods and the machinery used in the production of lithium cells for EVs is expected to promote EV industries and boost local manufacturing.
- The LED shares as a percentage of the total automotive lighting have touched 50% this quarter, reflecting the trend towards the faster adoption of this technology. The management is guiding this number to reach 60% in the coming years.
- During the quarter EV OEMs faced challenges relating to FAME-II incentives, however, management is confident that these are temporary hurdles and the industry will adopt and move forward swiftly.
- During the quarter, the Company has made a capex of INR18.42 crores, largely in plant and machinery at the Hosur plant
- Yamaha is a completely LED biz, while out of 50% of LED biz 43% comes from ICE & 7% EV.
- The company expects sales of Hero as % of sales to ramp up significantly in the coming quarter.
- The company saw stable revenues from the EV biz despite industry-wide turbulence due to exposure to more than 20 customers.
- The company’s margins increased due to the escalation clause with the customer.
- Yamaha biz saw volume degrowth due to lower exports. However since the company is the sole supplier for its FZ series, it expects revenues to recover sharply.
- The management when asked about biz wallets for FY22 stated that “ The TVS, for headlamps we are having 73%, taillamps 69%, winker 82%, and for rearview mirror 55%. For Yamaha, headlamp is 91%, taillamp is 64%, winker is 5%, and rearview mirror is 32%. Suzuki, headlamps are 80%, taillamp is also 80%, winker is 23%, rearview mirror, we are sole supplier so 100%. For HMSI, headlamp is 40%, taillamp is 76%, winker is 85%, and rearview mirror is 100%. Apart from the rearview for RR and position lamp, we are 100% with Yamaha as well as Suzuki.”
- The company expects the 2-wheeler market to touch its peak volumes of FY19 in the coming quarter, coupled with good export opportunities in the form of the China+1 trend playing out for supplies to Thailand & Europe.
- The company foresees LED penetration to reach 100% in the coming 5 years.
- The company’s capacity utilization is in the range of 75% for this quarter.
- The company on a 9M basis outperformed the industry growth by more than 1000 Bps.
- The company’s capex no. for the current as well as the coming financial year will be in the range of 40-50 Crs as per the management.
- The product development cycle remains between 1.5-2 years.
- The cash balance as of December 31st stood at INR 207 Crs.
- EV share for Q3 stood at 6%.
- The company has 95 products under development which will be materialized in the coming years.
- The company’s order book stands at INR 850-900 Crs.
- The market size of 2-wheeler stands at INR8000-9000 Crs & the company has a 33% market share currently.
- The company’s inventory levels have increased significantly due to requirements to give projections for 1 year Vs 6 months previously.
Analyst’s View
Fiem industries had a decent quarter recording 15% revenue growth YoY. The management is confident of delivering a 20% revenue growth rate for the next 3 years primarily due to a rebound in 2W sales coupled with a transition towards LED base lighting & increased penetration of EVs in the current automobile market. It remains to be seen how the company will maintain its margins given the global inflationary climate coupled with potential semiconductor shortage & auto slowdown. Nonetheless, Fiem industries is an interesting small-cap stock to keep track of.
Q2FY23
Financial Results & Highlights

Detailed results-
1) The company saw an excellent quarter with sales increasing by 25% YoY while PAT increased by 42% YoY.
2) Q2FY23 product mix distribution stood as –
A) Auto lamp – 37.02%
B) Auto LED lamp – 32.72%
C) Plastic molded parts – 11.70%
D) Rear View mirrors – 11.59%
E) Others – 6.97%
3) Revenue break up between segments –
A) OEM’s domestic – 91.42%
B) Replacement market – 5.97%
C) Exports – 2.61%
4) EBIDTA margins for H1FY23 stood at 13.5% while PAT margins stood at 7.19%.
CONCALL HIGHLIGHTS –
- The 2W industry’s sales grew by 8% YoY while the company’s sales grew by 25% during the same period.
- The EV market has grown by 550% in H1FY23 to 2.7 lakh vehicles.
- The company’s LED mix stood at 47% & is targeting 60%.
- The management expects the new models for Yamaha to be launched in the coming financial year.
- The contribution of EVs to total sales stands at 5%.
- The company doesn’t have an aftermarket division due to contracts with OEMs to directly sell the products to them only coupled with the company’s reluctance to engage in trading biz which its peers are doing.
- The company’s biz with Hero will involve supplying LED for new models which are mostly EV based.
- The company is maintaining its guidance of clocking margins of 13%.
- The management is working closely with a 4W customer & plans to announce the deal soon.
- The management states that Lighting is a fairly technology-intensive industry where barriers to entry for a new entrant are very high due to high investments in technology & large gestation period to get a breakthrough.
- The company is seeing softening of raw material prices.
- The company’s capacity utilization stands at 80% & it plans to add capacities in the southern belt due to increased opportunities in that region.
- The company will incur CAPEX of Rs.50-75 Crs entirely by internal accruals.
- The management states that the company’s margins are better than the industry due to operational efficiency.
- The management is giving guidance of 15-20% growth.
- The company’s margin profile in EV & ICE is similar.
- The company is the sole supplier to EV OEMs like Ola, Bounce 22, Revolt & Okinawa.
- The wallet share break of its top 4 customers is as follows-
- HMSI: headlamp- 40%, tail lamp 76%, side indicator 85%, and for rearview mirror 100% wallet share with HMSI and for RR and Position Lamp 100%.
- TVS: headlamp 73% and tail lamp 69%, blinker 82% and RVM 55%, License Lamp 50% and DRL is 100%
- Yamaha: headlamp 91%, tail lamp 64%, side indicator
5% and RVM 32%, position lamp 57%.
- Suzuki: headlamp 80%, tail lamp 80%, blinker 23%, RVM 100%, and RR 100%.
Analyst view:
Fiem industries had a decent quarter recording 25% revenue growth YoY. The management is confident of delivering a 20% revenue growth rate for the next 3 years primarily due to a rebound in 2W sales coupled with a transition towards LED base lighting & increased penetration of EVs in the current automobile market. It remains to be seen how the company will maintain its margins given the global inflationary climate coupled with potential semiconductor shortage & auto slowdown. Nonetheless, Fiem industries is an interesting small-cap stock to keep track of.
Q1FY23
Financial Results & Highlights

Detailed results-
1) The company saw an excellent quarter with sales increasing by 62% YoY while PAT increased by 160% YoY.
2) Q1FY23 product mix distribution stood as –
A) Auto lamp – 41.1%
B) Auto LED lamp – 31.8%
C) Plastic moulded parts – 10.9%
D) Rear View mirrors – 11.2%
E) Others – 5%
3) Revenue break up between segments –
A) OEM’s domestic – 90.74%
B) Replacement market – 6.58%
C) Exports – 2.68%
4) EBIDTA margins stood at 13.3% while PAT margins stood at 6.82%.
CONCALL HIGHLIGHTS –
- The 2W industry’s sales grew by 38.4% YoY while the company’s sales grew by 52% during the same period.
- The company is supplying to more than 20 customers in the EV segment which contributed to Rs18.5 Crs worth of revenues in Q1.
- The management states that due to exports of Yamaha from the company side being lower because of the fulfillment of its export orders in Q4FY23, the company recorded a QoQ decline Vs industry rate.
- The management states that headlamps have higher realizations than tail lamps.
- In the EV car segment, the company is the sole supplier of head & tail lamps for Mahindra Reva.
- The management expects Yamaha sales to be flat for the coming year.
- The wallet share break of its top 4 customers is as follows-
- HMSI: headlamp- 40%, tail lamp 76%, side indicator 85%, and for rearview mirror 100% wallet share with HMSI and for RR and Position Lamp 100%.
- TVS: headlamp 73% and tail lamp 69%, blinker 82% and RVM 55%, License Lamp 50% and DRL is 100%
- Yamaha: headlamp 91%, tail lamp 64%, side indicator
5% and RVM 32%, position lamp 57%.
- Suzuki: head lamp 80%, tail lamp 80%, blinker 23%, RVM 100% and RR 100%.
8) The company’s capacity utilization stands at 75%.
9) The management states that incentive schemes from Govt. Has helped bring EV two-wheeler prices closer to or at
par with ICE two-wheeler prices in some segments.
10) The company’s LED mix stood at 44%.
11) The management states that it had 80 projects in the R & D phase along with 17 new projects that it won in the recent quarter.
12) the company is working on 4+ projects with Hero.
13) The management is targeting to maintain its current margin profile of 12.5-13%.
Analyst view:
Fiem industries had a decent quarter recording 60% revenue growth YoY led by the lower base. The management is confident of delivering 20% revenue growth rate for the next 3 years primarily due to a rebound in 2W sales coupled with a transition towards LED base lighting & increased penetration of EV’s in the current automobile market. It remains to be seen how the company will maintain its margins given the global inflationary climate coupled with potential semiconductor shortage & auto slowdown. Nonetheless, Fiem industries is an interesting small cap stock to keep track of.