Ucal Limited

Ucal Fuel Systems Ltd (UCAL) was established in 1985 by Carburettors Limited, pioneers in India in manufacturing Carburetors and mechanical fuel pumps. In 1987, UCAL entered into a joint venture with Mikuni Corporation of Japan, an internationally renowned company for Fuel Management System and products. In 2008,Carburettors Ltd, the Indian promoter of UCAL Fuel Systems Ltd, acquired equity stake held by co-promoter, Mikuni Corporation of Japan. However, UCAL has absorbed extensive

UCAL’s engineering capability and the ability to manufacture auto components with consistent quality and reliability is well acknowledged by OEMs and component manufacturers alike, who have been giving repeat orders y-o-y. The company has established an integrated set up, whereby, the total die casting requirement of the company is developed in-house. In addition to this, the company also has in-house machining, assembly and testing units. Though the company’s forte lies in 2 W carburettor

UCAL enjoys a strong market presence in 2W carburettor segment. Sales from Two-wheelers contributed around 89%, while four- wheelers contributed around 11% of the total income in FY23 (refers to the period April 1 to March 31). UCAL’s major 2W clients are Bajaj Auto Ltd (Bajaj) and TVS Motor Company Limited (TVS). UCAL supplies Mechanical carburetor to the export requirements of Bajaj Auto and TVS Motor. UCAL supplies E-Carburettor to Bajaj for domestic segment. On the Export front, there has be

PBILDT Margins have moderated in the last few years due to lower capacity utilization resulting in lower absorption of fixed cost. The company reported total operating income of Rs. 584.48 crore in FY23 (PY: Rs.543.94 crore). The PBILDT margin stood at 8.06% in FY23 as against 8.47% in FY22. The Overall gearing stood at 0.53x as on March 31, 2023 as against 0.62x as on March 31, 2022. In FY24 , the company has capex plans of about Rs. 45 crores, of which Rs. 30 crores will be funded through debt

UCAL acquired US based UCAL Holdings INC (UHI; previously known as Amtec Precision Products, Inc) during June 2005. UHI, the wholly owned subsidiary of UCAL is into the business of manufacturing of precision machined components for supply to US auto and engine manufacturers including Cummins, Navistar, Thysenkrup and Ford Motor Company. The company had a total equity investment of Rs.109.40 crore as on March 31, 2023. Earlier during FY20 the company recognized impairment of Rs.105.09

Auto industry is cyclical in nature and technological obsolescence risks inherent in the industry with the change in emission norms. The company in the past was successful in adopting to new technologies like E- Carburetor after implementation of BS VI emission norms. The company is in a challenging environment to adopt to new technologies, with OEMs moving to fuel injection systems and electric Vehicles over the carburetor systems. Leveraging its engineering capabilities for adapting and adopti