News: In regulatory exchange filing Sansera Engineering informed exchanges about withdrawn of contract of about ~$400 million (~₹3,000 crores) for development, manufacturing and supply of connecting rods from a leading North American OEM which was expected to be produced from July 2025.
Views: This was one of the major order wins for the company providing long term growth visibility. Cancellation of same is sentimentally negative, however it does not alter our forward estimates given that it was slated to commence post FY24E. On the capabilities front, the company is still well placed to execute ~₹ 300 crore order from BMW Motorand for aluminium forged and machined parts over a 10 year period.
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