TCL - Thaai

📊 NSE: TCL 🏢 Auto Ancillaries 📅 Last Updated: 12/14/2025 14:18

💰 Financial Performance

Revenue Growth by Segment

Revenue grew 84.7% YoY from INR 49.02 Cr in FY23 to INR 90.55 Cr in FY24. H1 FY25 revenue reached INR 53 Cr, supported by an order book of INR 384 Cr as of November 2024. The primary segment is Die Casting Products.

Geographic Revenue Split

Manufacturing operations are centralized in Tiruvallur, Tamil Nadu, with a 2,500-tonne capacity manufacturing unit. Specific regional revenue percentages are not disclosed.

Profitability Margins

Operating margins have fluctuated between 13% and 28% over the past three fiscals. Standalone Net Profit for FY25 was INR 11.73 Cr compared to INR 10.66 Cr in FY24, representing a 10% increase.

EBITDA Margin

EBITDA margin was 26% in H1 FY25. Sustenance of margins at 20-22% is a key monitorable for credit rating stability. A decline below 13% is considered a downward rating factor.

Capital Expenditure

In FY24, the company invested INR 66.70 Cr in Property, Plant & Equipment. Debt-funded capital expenditure is planned for fiscal 2025 to support capacity and new specialized processes.

Credit Rating & Borrowing

CRISIL assigned a 'CRISIL BBB-/Positive' rating. Interest coverage ratio was 6.94 times in FY24 and is expected to remain above 5 times over the medium term.

⚙️ Operational Drivers

Raw Materials

Aluminum ingots represent the primary raw material, accounting for 44-50% of total operating income.

Key Suppliers

Not disclosed in available documents, though the company maintains long-standing relationships with its supplier base.

Capacity Expansion

Current installed capacity is 2,500 tonnes of high-pressure die casting. Planned expansion includes focusing on specialized processes like gas nitriding and planetary gear machines to enhance margins.

Raw Material Costs

Raw material costs comprise 44-50% of operating income. Margins are highly susceptible to volatility in aluminum ingot prices, which have caused historical margin fluctuations between 13% and 28%.

Manufacturing Efficiency

Bank limit utilization was high at 85-87% on average through October 2024, indicating high operational activity and working capital needs.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

Growth will be driven by an INR 384 Cr order book, addition of new customers, and a strategic shift toward specialized high-margin products like gas nitriding and planetary gear machines. The company aims to restrict aggressive growth in standard casting to focus on these critical, higher-value components.

Products & Services

High-pressure die casting products, precision machining of ferrous and non-ferrous materials, induction heating, and quenching services.

Brand Portfolio

Thaai Casting Limited (TCL).

New Products/Services

Gas nitriding and planetary gear machines are expected to contribute to higher margins starting from FY26.

Market Expansion

The company is expanding its client base beyond existing OEMs like Hyundai and Tata to include new customers in the power and textile sectors.

Strategic Alliances

Consolidated entities include Thaai Induction and Nitriding Pvt Ltd and Simtech CNC, which provide significant business and operating linkages.

🌍 External Factors

Industry Trends

The industry is shifting toward specialized machining and induction processes. TCL is positioning itself by focusing on critical components rather than aggressive volume-based casting.

Competitive Landscape

Operates in the competitive automotive ancillary and die-casting market, competing with other high-pressure die-casting specialists.

Competitive Moat

Moat is built on the promoters' 30+ years of experience and certifications from major OEMs like Hyundai and Mahindra, which act as high entry barriers for new competitors.