โข Divgi had a very strong first quarter, with sales jumping 85% to โน142 crore and profit margins reaching nearly 30%, mainly because of high demand for 4x4 transfer cases and new export orders.
โข The big growth came from an Indonesia project (about 30% of a 70,000-unit order already shipped) and exclusive contracts in North America that brought in โน23 crore this quarter after exports had almost stopped two years ago.
โข Electric vehicle (EV) transmissions are still small at only โน5.7 crore this quarter, but the company expects this to rise to โน10โ12 crore per quarter soon after completing required approvals.
โข Divgi is changing from just making parts designed by others into a company that designs its own advanced transmissions; the biggest future jump is expected from automatic transmissions, which could add โน300โ500 crore from a single big order starting around late 2028.
โข Management says the current high 29% margin wonโt last and a more realistic long-term target is 20โ22%; the company aims for โน1,000 crore in yearly sales by combining transfer cases, exports, EVs, manuals and automatics, but success depends on winning new contracts and staying on schedule with car makers.โโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโโ
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