Remsons Industries Ltd Q4 FY25 Earnings Analysis

- Remsons aims to grow its top line to Rs. 900 crores to Rs. 1,000 crores by FY ’29, driven by both organic growth and acquisitions. - The Company targets a consistent revenue growth of around 20% year-on-year. - Organic growth alone has been sustaining around 25% and is expected to continue at high double digits. - Acquisitions, including BEE Lighting and a sensor business, will contribute about 15% of revenue in FY ’26, with further acquisitions planned for FY ’26-’27. - Export share is slated to increase from 35% to 40%, with cables constituting about 90% of exports. - New product segments like heavy commercial vehicles, tire mobility kits, electronics, and sensors are prioritized for higher margins and future growth. - A Capex of Rs. 100 crores over four years will support capacity expansion and diversification to tech-based products.

- Revenue growth target of 20% year-on-year, aiming for Rs. 900-1,000 crores by FY ’29. - Operating PAT expected to grow by 40%-45% excluding exceptional items. - Q4 FY ‘25 revenue target of Rs. 100 crores with a 5% increase in PAT over last year’s operating PAT. - Focus on increasing export contribution from 35% to 40% in overall business, which is more profitable. - Margin improvement expected by adding higher-margin products like heavy commercial vehicles, tire mobility kits, electronics, sensors, and lighting. - New acquisitions and organic growth to drive multi-fold earnings growth. - Planned Rs. 100 crores Capex over four years to support capacity expansion and product innovation. - Continued double-digit organic growth (around 25%) alongside acquisitions. - Emphasis on expanding tech-based products and strategic acquisitions to boost profitability further.

- Remsons plans a total Capex of around Rs. 100 crores over the next four years for organic and inorganic expansion (Page 12). - This investment includes acquisitions, capacity expansion, and new business developments (Pages 6, 12). - Funding for Capex and acquisitions is expected through a mix of equity raise, warrants, and internal accruals, with no major reliance on debt (Page 7). - The Capex will support growth in new product segments like lighting (Rs. 150-200 crores potential revenue) and sensors (Rs. 100 crores potential revenue), as well as tech-based products and geographic expansion (Pages 6, 12, 4). - A major acquisition is planned in FY ’26-‘27 focusing on tech space in a different geography to expand Remsons' global footprint (Page 4). - Deliberations and announcements related to “Remsons Green” initiatives and strategic investments are ongoing (Page 12).

- Future funding for growth, including Capex and acquisitions, will predominantly come from internal accruals and equity-related instruments. - Specifically, the company plans to raise capital through a combination of preferential allotment (pref raise), equity raise, and warrants. - There is no explicit mention of raising funds through debt. - The Capex plan is around Rs. 100 crores over four years, expected to be funded via the above-mentioned equity and internal accrual routes. - This approach supports their aspiration to reach Rs. 900 crores to Rs. 1,000 crores revenue by FY ’29 through organic growth, acquisitions, and expansion.

- The Company has secured a fourth order from Tata Motors for winches used in spare wheels, including Nexon CNG. - The total value of winch orders in India from Tata Motors stands at Rs. 30 crores. - These orders are to be executed over the next three years. - Remsons is working on opportunities with Indian Railways for various engineering parts and sensors, currently in diligence. - The company aims to continue growing its order book through strategic acquisitions and expanded product offerings in tech-based and EV-agnostic solutions. - Joint ventures such as Aircom and Daiichi are expected to contribute Rs. 100-150 crores revenue in the next four years, indicating ongoing order flow in those segments.