Sansera Enginee. Q4 FY25 Earnings Analysis

- The company targets high teens CAGR (~15%) in revenue growth over the next 3 years despite cyclical auto industry demand and technological shifts. - Aerospace, Defense, and Semiconductor segments are expected to grow robustly, with a combined order book of ~INR600 crores and a target to execute at least 50% next year. - Aerospace alone is expected to grow around 50% CAGR, supported by defense orders and Semicon revenue. - Semiconductor business order book was around $17 million, with potential to grow to $30 million annually in 3 years. - Non-auto, xEV, and tech-agnostic segments are projected to grow, reaching close to 38% of revenue mix in the next 3 years (up from 26% currently). - New Aerospace projects like Radar 1 are expected to generate stable and significantly higher revenue in coming years. - Positive momentum and new product launches expected to revive PV business with premiumization focus. - Management is optimistic about stronger order execution and business growth in FY26 and beyond.

- Sansera Engineering expects high teens CAGR revenue growth over the next 3 years, driven by a strong order book and new product introductions. - EBITDA margins are targeted to improve year-on-year by at least 0.5%, with a long-term aspirational margin of around 20%. - The company aims to reach a pre-tax ROCE of 20% in 3-4 years, which would translate to a post-tax ROCE above 15%. - Aerospace, Defense, and Semiconductor segments are expected to grow significantly, with Aerospace targeting 50% CAGR and Semiconductor adding incremental revenues (INR60 crores expected next year). - Earnings growth is supported by margin expansion, diversification into higher-margin segments (like xEV, Semicon, Aerospace), and cost savings. - Net positive cash flow is around INR150 crores, improved by QIP proceeds used partly for debt reduction and capex supporting future growth. - Overall, Sansera projects sustained profitability improvement aligned with revenue growth toward INR5,000 crores by FY '28.

- Completed capex till date this year is approx. INR370 crores; expected full-year at INR425-450 crores excluding land. - Additional land parcel (55 acres) purchased near new EV estate in Karnataka; including land, total capex ~INR550 crores. - INR200 crores from QIP proceeds allocated to capex: INR100 crores for new parcel of land, INR100 crores for new machinery. - Upcoming capex driven mostly by new orders, especially in Aerospace, Defense, and Semiconductor sectors. - Future capex expected to be ahead by 3-4 quarters of related revenue realization. - New Aerospace machining facility capex around INR110-120 crores with higher asset turns (2x to 2.25x). - Total investment over next 3 years estimated at INR1,300-1,400 crores to support order book growth. - Strategic investments include increasing stake in subsidiary MMRFIC up to 51% for Defence sector opportunities.

- The company completed a Qualified Institutional Placement (QIP) raising approximately INR1,200 crores. - Out of this, INR700 crores was already used to retire debt, and INR200 crores is allocated for capex (land and machinery). - The remaining INR300 crores (after INR25 crores in QIP expenses) will be decided soon, mostly directed toward growth capex and development expenses. - There are no explicit mentions of any new or upcoming fundraising through debt or equity beyond this QIP in the discussion. - Gross debt as of December end is about INR350 crores with net positive cash of approximately INR150 crores, suggesting a healthy balance sheet post-QIP. - No additional plans for fresh debt or equity fundraising were disclosed in the call for the near future.

- Current order book as of December 2024 stands at INR 2,200 crores (INR 22 billion). - More than 60% of the order book is from international markets. - Order book for Aerospace, Defense, and Semiconductor segments combined is approximately INR 600 crores. - Semiconductor order book recently increased to about $17 million (~INR 140-150 crores). - Aerospace and Defense expected to grow with at least 50% order book execution targeted for FY '26. - Expected execution from Aerospace, Defense, and Semicon order book for FY '26 is about INR 300 crores. - New orders booked worth INR 190 crores (INR 1.9 billion) during the last quarter, with major inflows from non-auto sectors. - Tech-agnostic and xEV order book stands at INR 535.2 crores (INR 5,352 million), forming a major part of growth pipeline.