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The automotive fabric business of the Faze Three company is called Faze Three Autofab Ltd. The company is involved in the design, development, and production of automotive textiles, with a focus on fabric for vehicle seat covers. Additionally, it produces fabrics for train coaches and auditoriums. The company primarily focuses on the domestic market and serves OEMs. It is a recognised top provider of automotive fabrics to all major Tier-1 and Tier-2 OEMs.

Faze Three Autofab Ltd

Current Market price on the date of publishing this report- 86 Rs

Introduction

Incorporated in 1997 AUNDE India Limited (AFTAL), formerly AUNDE Faze Three Limited, is an India-based company. Producing autofabrics is the company’s primary business. The business specialises in auto-fabrics and works in the technological textiles sector. It provides a variety of goods, such as textile fabrics that have been impregnated, coated or laminated, woven, and other textiles.

The Company’s clients include Ford, General Motors, Mahindra and Mahindra, Maruti Udyog, Volvo and Hyundai Motors. The Company has its manufacturing unit at Dadra, Union Territory of Dadra and Nagar Haveli.

Faze Three is one of the most preferred manufacturer, supplier and exporter of car seat cover and upholstery textiles to automobile industry with more than 1.5 million passenger vehicles each year.

The Company primarily focuses on the domestic market and serves Original Equipment Manufacturers (OEMs). More than 90% of the company’s revenue comes from the domestic market. The company presently projects having a market share of between 40% and 45% in India’s automotive fabric industry and is working with current OEMs to grow that share. Over the past few years, the company has expanded its export business, and it is actively seeking to do so going forward.

Currently, the company produces about 1 million metres of fabric each month, including textiles for automobile exports. The company’s clientele has expanded beyond the big OEMs, and it currently works on projects involving buses, trains, auditoriums, etc.

Company’s clientele Includes

• US – FORD
• INDIA – HYUNDAI, SUZUKI, KIA, VOLKSWAGEN Group, MAHINDRA, TATA
• UZBEKISTAN – GENERAL MOTORS
• CHINA – MG MOTORS, THE GREAT WALL
• RUSSIA – FORD

Parent company AUNDE

Conrad Ebels and Victor Achter’s cloth weaving business established the groundwork for the group that is now known as AUNDE in 1899. Beginning in 1920, the business started to focus on the creation and production of upholstery and cutting-edge textiles for the expanding automobile sector. AUNDE continued to grow and change with its automotive clients, and today we are able to provide a wide range of solutions from a single source, including custom designs, technical conceptualisation, and the supply of technical textiles and upholstery materials that have all the necessary certifications.

Although AUNDE group has expanded internationally, we still have strong roots in the Mönchengladbach region. We still care deeply about where we live.

Business products

Faze Three has 23 years of expertise in automotive & home furnishing textiles.

Company Produces XM Car seat covers per year for major brands including Ford, Hyundai, Suzuki, Kia, Toyota, Tata, Mahindra Skoda, Volkswagen, &GM.

Make your automotive look luxurious by choosing the right Seat fabrics from our collection.

Financials

For the year ended March 22

• Revenue from Operations increased by 46.14% to Rs. 196.03 Cr. for the fiscal year that ended in March 2022 from Rs. 134.14 Cr. in the fiscal year that ended in March 2021.
• Net Profit increased by 16.56% to Rs. 12.95 Cr. for the fiscal year ended March 31, 2022, from Rs. 11.11 Cr. for the fiscal year ended March 31, 2021.
• PBDIT numbers for the year increased by 5.87% to Rs. 24.69 Crores from Rs. 23.32 Crores in the prior fiscal year.

Fore Q3 FY23

• Net Sales stood at Rs 38.93 crore in December 2022 down 6.64% from Rs. 41.70 crore in December 2021.
• Quarterly Net Profit stood at Rs. 0.62 crore in December 2022 down 83.85% from Rs. 3.84 crore in December 2021.
• EBITDA stood at Rs. 3.66 crore in December 2022 down 51.07% from Rs. 7.48 crore in December 2021.
• Faze Three Auto EPS has decreased to Rs. 0.58 in December 2022 from Rs. 3.58 in December

Sectorial Outlook

Over 4.5 lakh tonnes of textiles are used in the automotive industry globally, according to estimates. A motor vehicle’s usage of textiles accounts for 2.2% of the vehicle’s total weight.

Although there is an increasing demand, switching to electric vehicles (EV) comes at a high cost. Due to these developments, there is now fierce rivalry, which is undercutting current brand strategies and opening up a wealth of new options for both established Original Equipment Manufacturers (OEM) and emerging brands. Despite these obstacles, the majority of OEMs are aggressively pursuing the enormous opportunity presented by EVs.

Conclusion

The company specialises in designing, creating, and manufacturing automobile textiles, particularly fabric for seat coverings. It also manufactures textiles for auditoriums and train carriages. The company primarily serves OEMs and concentrates on the domestic market. It is acknowledged as a leading supplier of automotive textiles to all significant Tier-1 and Tier-2 OEMs. In the last three to five years, net profit has expanded at a compounded growth rate of 40% while sales have grown by 10%. Although the company’s debt to equity ratio of 0.9 is surely concerning, as of March 2022, it also had an accumulation of $8 cr in cash and equivalents. If the sales momentum remains strong moving ahead, the company may be on the way to improved profitability and exponential growth in the future. As a result, Faze three Auto is interesting to investigate further.