Federal-Mogul Goetze (India) Limited is an India-based company engaged in the manufacturing, supplying, and distribution of automotive components used in two/three/four-wheeler automobiles. The company's primary business segment is the manufacturing and trading of auto components. It was established in 1954 as a joint venture with Goetze-Werke of Germany. Currently, it operates as a subsidiary of Tenneco Inc, following Tenneco's acquisition of Federal-Mogul.
The company has established itself as a significant player in the Indian automotive components sector, particularly in the manufacturing of critical engine components. It offers piston rings, pistons, cylinder liners, and sintered metal products. It manufactures a range of piston rings for bi-wheelers, tractors, passenger cars, suburban utility vehicles (SUVs), commercial vehicles, locomotive engines, stationary engines, and industrial applications. The company also offers a range of light metal castings, including cylinder blocks, cylinder heads for single-cylinder engines, aluminum tube castings, and aluminum crown handles for motorcycles.
Federal-Mogul Goetze is the second-largest player in the organized market of pistons and piston rings in India, holding approximately 29% market share. This strong market position demonstrates the company's competitive advantage and established presence in the domestic automotive components industry. The company's diverse product portfolio enables it to serve multiple segments of the automotive industry, from two-wheelers to heavy commercial vehicles and industrial applications.
It produces a range of sintered metal products for valve trains, transmission, lubrication pumps, and other engine/structural parts. This diversification across various automotive components helps the company maintain stable revenue streams and reduces dependency on any single product category.
Federal-Mogul Goetze has demonstrated robust financial performance in recent quarters and years. For the full year ended March 2025, net profit rose 27.70% to ₹162.03 crore, compared to ₹126.88 crore in the previous year. Sales for FY25 rose 6.17% to ₹1,800.19 crore, up from ₹1,695.58 crore in FY24.
The company maintained strong growth momentum in the latest quarter. Net profit in Q4 FY25 rose 47.26% to ₹59.39 crore, against ₹40.33 crore in Q4 FY24. Sales in Q4 FY25 rose 7.23% to ₹458.75 crore, compared to ₹427.81 crore in Q4 FY24.
• Revenue (FY25): ₹1,800.19 crore
• Net Profit (FY25): ₹162.03 crore
• Revenue Growth (FY25): 6.17% year-on-year
• Net Profit Growth (FY25): 27.70% year-on-year
• Q4 FY25 Revenue: ₹458.75 crore
• Q4 FY25 Net Profit: ₹59.39 crore
• Market Capitalization: ₹2,824 Crore (as of March 2025)
• PE Ratio: 13.19
• PB Ratio: 1.59
• Promoter Holding: 74.98% (as of March 2025)
The company maintains a strong balance sheet with minimal debt burden, having significantly reduced its debt. Federal-Mogul Goetze is almost debt-free, which provides financial flexibility and reduces financial risk for investors, enabling it to report stable earnings growth across business cycles.
The company has delivered good profit growth of 37.2% CAGR over the last 5 years, demonstrating consistent profitability improvement. However, sales growth has been modest at 10.6% over the past five years. This indicates that while the company has been successful in improving operational efficiency and margins, top-line growth has been slower.
Over the last 5 years, revenue has grown at a yearly rate of 4.96%, which is below the industry average of 8.27%. Similarly, net income has grown at a yearly rate of 7.74%, also lagging behind the industry average of 10.04%, suggesting that both revenue and profit growth have underperformed compared to industry peers.
Beyond Q4 FY25, the company's Q2 FY25 results also showed strong momentum. Profit before tax in Q2 FY25 stood at ₹57.21 crore, up by 22.5% from ₹46.71 crore in Q2 FY24. The total tax outgo for Q2 FY25 was ₹17.95 crore, up 27.4% year-on-year.
Net profit in Q2 FY25 rose 18.94% to ₹38.24 crore, against ₹32.15 crore in Q2 FY24. Sales rose 4.88% to ₹463.71 crore in Q2 FY25, compared to ₹442.12 crore in Q2 FY24.
In the main management, K N Subramaniam serves as the Chairman, and Khalid Iqbal Khan is the Company Secretary for Federal-Mogul Goetze (India) Ltd. Promoter holding in Federal-Mogul Goetze (India) Ltd has remained steady at 74.98% as of March 2025, indicating strong management confidence in the company's prospects.
Federal-Mogul Goetze (India) Ltd is committed to sustainability, particularly through its Bangalore plant, which utilizes solar power to meet 95% of its energy needs from renewable sources. This initiative has led to significant financial savings and a reduction in carbon footprint, positioning the company well for future environmental regulations and cost optimization.
The company operates in the essential automotive components sector, which benefits from steady demand from both original equipment manufacturers (OEMs) and the aftermarket. While the return on equity (ROE) is moderate at 12.4% over the last 3 years, the company's debt-free status and strong market position provide a solid foundation for future growth.
Though the company is reporting repeated profits, it is not currently paying out dividends. This suggests that management is prioritizing reinvestment of earnings into business growth rather than distributing profits to shareholders. Federal-Mogul Goetze (India) Ltd represents a stable investment opportunity in the automotive components sector, backed by a strong market position, healthy financials, and debt-free operations, ensuring resilience in the competitive automotive industry.
