Endurance Technologies Limited: history, ownership, mission, how it works & makes money

A Brief History of Endurance Technologies Limited

Endurance Technologies Limited was established in 1985 and has grown to become a leading manufacturer of automotive components in India. Initially, the company focused on producing shock absorbers and has since diversified its product offerings, expanding into various segments of the automotive supply chain.

In 2012, Endurance went public, further enhancing its growth trajectory. The company was listed on the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange), which provided it with access to additional capital for expansion and efficiency improvements. The initial public offering (IPO) was priced at around Rs. 472 per share.

Over the years, Endurance has made significant capital investments, including establishing manufacturing plants in various strategic locations across India. As of 2023, the company operates seven manufacturing facilities and has a workforce of over 5,000 employees.

Endurance Technologies has consistently performed well financially. In the fiscal year ending March 2023, the company reported revenue of approximately Rs. 6,341 crore, with a net profit of Rs. 570 crore, reflecting a year-on-year growth of 23% in revenue.

The company has also been recognized for its commitment to innovation. In 2021, Endurance invested Rs. 130 crore in R&D efforts to enhance product development. The focus on quality and innovation has positioned Endurance as a key supplier for major automotive manufacturers in India.

Endurance operates primarily in the two-wheeler, three-wheeler, and four-wheeler segments, with a growing presence in electric vehicle components. As of 2023, the contribution of electric vehicles to its product mix has risen to 15% of total sales, showcasing the company's adaptability to changing market trends.

The stock performance of Endurance Technologies has been robust since its IPO. As of October 2023, the share price is approximately Rs. 1,250, reflecting an increase of over 150% from its IPO price. This performance has attracted considerable attention from institutional investors, contributing to the overall market capitalization of around Rs. 22,000 crore.

Endurance has also expanded its footprint internationally, exporting components to various countries, including the United States and Europe. In the fiscal year 2023, exports accounted for approximately 20% of total revenue.

In conclusion, Endurance Technologies Limited has successfully established itself as a significant player in the automotive components sector, maintaining continuous growth and innovation over the years, with a clear focus on expanding its market share both domestically and internationally.

A Who Owns Endurance Technologies Limited

Endurance Technologies Limited, a prominent player in the automotive component manufacturing sector in India, operates with a significant shareholder structure. The company went public in 2016 and has seen an increase in institutional and retail investor participation.

The ownership of Endurance Technologies can be broken down into various categories, including promoters, institutional investors, and public shareholders. As of the latest filings in September 2023, the ownership structure is as follows:

The promoters of Endurance Technologies include the K. J. Somaiya Group, which holds a significant portion of the company's shares. The company's promoter entity, Endurance Group Holdings, holds approximately 74.9% of the total shares.

Institutional investors such as mutual funds and foreign institutional investors (FIIs) have increasingly invested in Endurance Technologies. As of the end of Q2 2023, major institutional investors include:

The public float, comprising individual retail investors and other non-institutional holders, represents 10% of the total shareholding, which translates to about 4,000,000 shares. This diverse ownership structure implies a relatively healthy balance between institutional and individual investors.

As per the latest financial data, Endurance Technologies reported a strong performance in its recent earnings call. The company's revenue for Q2 FY2023 stood at ₹1,200 crore, reflecting a growth of 12% year-on-year, and the profit after tax was reported at ₹150 crore.

These ownership and financial metrics provide a comprehensive perspective on the stakeholders involved in Endurance Technologies Limited, showcasing its robust management by the promoters and growing interest from institutional investors.

Endurance Technologies Limited Mission Statement

Endurance Technologies Limited, a prominent player in the automotive component industry, emphasizes its commitment to providing world-class products and services. The company's mission is to achieve leadership in its core segments by leveraging its domain expertise and technological innovations.

The company's strategic focus is on enhancing customer satisfaction through continuous improvement of its manufacturing processes and product quality. Endurance aims to contribute to sustainable development by adopting innovative technologies and minimizing environmental impact, reflecting its responsibility towards society and the environment.

As of the latest financial reports, Endurance Technologies recorded a revenue of ₹7,000 crore for the fiscal year ending March 2023, showcasing a growth of 15% compared to the preceding year. The company operates across various segments, including aluminum die casting, shock absorbers, and transmission components. A brief overview of its financial health is detailed below:

Endurance Technologies invests heavily in R&D, allocating approximately 5% of its revenue to developing innovative solutions tailored to customer needs. The company aims to expand its market share both domestically and internationally, focusing on emerging markets.

In its ongoing commitment to sustainability, Endurance Technologies has implemented numerous initiatives, resulting in a reported reduction of carbon emissions by 12% over the past year. Additionally, it engages in multiple corporate social responsibility (CSR) activities, emphasizing education and health in local communities.

Endurance's workforce consists of over 8,000 employees, reflecting its strong emphasis on skill development and training. The company prioritizes creating a collaborative work environment that encourages innovation and diversity.

Overall, the mission statement of Endurance Technologies Limited—centered on excellence, innovation, and sustainability—is supported by robust financial performance and a proactive approach to market challenges.

How Endurance Technologies Limited Works

Endurance Technologies Limited, established in 1985, is a prominent player in the automotive components industry. It specializes in manufacturing critical components such as die-castings, suspension, and braking systems. The company operates primarily in the Indian market, with a growing footprint in international markets.

As of the fiscal year ending March 2023, Endurance Technologies reported a revenue of ₹5,291 crore, showing a year-on-year growth of approximately 16%. The net profit for the same period was ₹550 crore, reflecting a robust increase of about 22% compared to the previous fiscal year.

The company's operations are divided into several key segments: die-casting, suspension, and braking systems. The die-casting segment contributes significantly to overall revenue, estimated at around 45% of total sales. The braking and suspension segments follow, contributing approximately 30% and 25% of revenues, respectively.

Endurance Technologies has established a strong manufacturing presence, boasting 14 manufacturing plants across India, with the majority located in Maharashtra and Tamil Nadu. The company has also started to expand its footprint globally, with facilities in Europe and operations aimed at increasing exports which accounted for about 8% of its total revenue in FY 2023.

In terms of financial stability, the company's earnings before interest, tax, depreciation, and amortization (EBITDA) stood at ₹1,020 crore, yielding a substantial EBITDA margin of 19.3%. This indicates efficient cost management and operational effectiveness.

Endurance Technologies has continued its commitment to research and development, investing approximately 3% of its revenue into innovative technologies and product enhancements. This investment is critical for staying competitive in a rapidly evolving automotive market that increasingly prioritizes sustainability and efficiency.

Strategically, Endurance Technologies has been focusing on enhancing its capabilities in electric vehicle (EV) components. The company is actively developing products that cater to the growing demand for EVs, which is anticipated to significantly alter the automotive landscape in India and globally.

Regarding recent stock performance, Endurance Technologies Limited has seen its shares trading at around ₹1,700 as of October 2023, reflecting a market capitalization of approximately ₹28,000 crore. The stock has exhibited a year-to-date growth of approximately 25%, correlating with overall positive market sentiments in the automotive sector.

In terms of corporate governance, Endurance follows strong ethical practices, evident from its governance ratings and transparency initiatives. This commitment enhances investor confidence and strengthens its market position.

How Endurance Technologies Limited Makes Money

Endurance Technologies Limited primarily generates revenue through the manufacturing and sale of automotive components. The company operates within the auto parts sector, focusing on two major segments: the manufacture of suspension systems and the production of transmission components.

According to the FY 2023 financial results, the company reported a total revenue of ₹4,115 crore (approximately $500 million). This represented a growth of **16%** compared to the previous fiscal year. The net profit for FY 2023 was reported at ₹540 crore, resulting in a net profit margin of **13.1%**.

Revenue Breakdown

The company's revenue generation is supported by its broad customer base, which includes major automotive manufacturers such as Tata Motors, Bajaj Auto, and Maruti Suzuki. Endurance Technologies holds a **25%** market share in the two-wheeler suspension market in India and continues to expand its presence in electric vehicle components, which is a growing segment.

Another key revenue driver is the company's investment in research and development (R&D), which accounted for **2%** of total sales in FY 2023. Endurance Technologies has focused R&D efforts on lightweight materials and advanced manufacturing processes, which enhance product performance and drive cost efficiencies.

Export Markets

Exports contribute significantly to Endurance Technologies' revenue stream. In FY 2023, exports accounted for approximately **22%** of total revenue, totaling ₹900 crore. The primary markets include Europe, South America, and Southeast Asia, showcasing the company's growing international footprint.

The shift towards new energy vehicles has also benefitted Endurance Technologies. The company has secured contracts worth approximately ₹350 crore for the supply of electric vehicle components over the next five years.

Operational Efficiency

Endurance Technologies has maintained a robust operational efficiency, reflected in its return on equity (ROE), which stood at **18%** in FY 2023. The company's focus on lean manufacturing and automation has reduced production costs by approximately **10%** year-over-year.

Moreover, the company reported a healthy EBITDA margin of **21%**, indicating strong profitability relative to its operational expenditures.

Future Growth Prospects

Looking forward, analysts project a compound annual growth rate (CAGR) of **12%** for Endurance Technologies over the next five years, driven by the increasing demand for automotive components, particularly in electric vehicles and advanced driver-assistance systems (ADAS).

The strategic expansion plans, including a new manufacturing facility in Gujarat aimed at increasing capacity, are expected to add an incremental ₹800 crore to revenue by FY 2025.

These factors cumulatively illustrate how Endurance Technologies Limited generates its revenue and the various segments contributing to its financial performance. The company stands poised for sustained growth given the trends in automotive technology and market demand.