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Murugappa targets EBITDA break-even in 3 EV segments

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Murugappa targets EBITDA break-even in 3 EV segments

Rising battery cell prices, rupee depreciation and higher commodity costs have pushed up the bill of materials (BOM) across TICM’s four businesses, putting pressure on profitability.

The company is considering selective price increases and better realisations on a deal-by-deal basis, while stepping up efforts to reduce component costs.

Murugappa Group ’s engineering flagship, Tube Investments of India (TII), which operates the group’s electric mobility business through its subsidiary, TI Clean Mobility (TICM), expects its electric truck business to reach EBITDA break-even by Q4 FY27, while two other businesses are expected to break even by Q4 FY28. The tractor business may take longer, as electrification is still at an early stage. “We need to achieve scale in each business, although the required scale will differ from one segment to another,” the management of TII said during the Q2 FY27 earnings call. Advt

At the organisational level, TICM’s first objective is to achieve EBITDA break-even, followed by profitability at the net profit level. Rising battery cell prices, rupee depreciation and higher commodity costs have pushed up the bill of materials (BOM) across TICM’s four businesses, putting pressure on profitability. Amid intensifying competition and rising input costs, the company will focus on five key priorities to drive growth and improve profitability in its electric mobility business. Reducing BOM costs, strengthening service and after-sales support, identifying profitable end-use applications and launching products suited to market requirements will be central to its strategy.

The company is considering selective price increases and better realisations on a deal-by-deal basis, while stepping up efforts to reduce component costs.


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