Any current/future new fundraising through debt or equity?

Alicon Castalloy Limited plans to invest in new equipment and automation to handle bigger and more critical parts, indicating a need for additional capacity. For FY25, the company anticipates a CapEx of around Rs. 150 crore, primarily focused on machinery and new product development. Management mentioned the need for debt to support capacity expansion but emphasized managing most of the CapEx through internal accruals. The blended interest cost on borrowings is around 9.5%. No specific mention of equity fundraising was made in the call. For FY26, CapEx plans may increase further depending on n

Any current/future capex/capital investment/strategic investment?

FY25 CapEx is guided around Rs. 150 crore, with Rs. 100 crore already spent in H1 focusing on machinery and new product development. Additional CapEx expected in FY26 for capacity expansions linked to new businesses, likely less than Rs. 150-200 crore, more in the Rs. 90-100 crore range. Investment focus is on automation, including adding robots for handling heavier, critical parts like a 30 kg Jaguar part. New equipment investments are planned to handle bigger, more critical parts requiring additional capacity and higher precision. Emphasis on automation and advanced technologies to increase

Future growth expectations in sales/revenue/volumes?

FY25 revenue guidance is Rs. 1,800 crore with 15% growth targeted. FY26 guidance not firm yet due to global market softening; clarity expected next quarter. Long-term target is Rs. 2,200 crore revenue by FY27. New orders booked amount to Rs. 37 crore in Q2 FY25, with a total executable order book of Rs. 9,000 crore over 6 years till 2028-29. Growth driven by higher value addition and critical parts, especially in Passenger Vehicles and exports. Expansion into hybrid and EV segments expected to boost volumes. Increasing automation and capacity enhancement planned to handle bigger, critical part

Future growth expectations in earnings/operating earnings/profits/EPS?

Alicon achieved strong Q2 FY25 results with 22% YoY revenue growth and record quarterly revenue of Rs. 465 crore. For FY25, revenue guidance is Rs. 1,800 crore, targeting 15% growth, but near-term market softness in global demand creates some uncertainty. FY26 guidance is tentative; clarity expected next quarter after OEM volume projections are available amid global market volatility. Medium-term target includes maintaining Rs. 2,200 crore revenue by FY27 with focus on Passenger Vehicles, Commercial Vehicles, exports, and higher value-add automated manufacturing. EBIT and PAT growth seen with

Current/ Expected Orderbook/ Pending Orders?

Alicon Castalloy Limited's total new order bookings have surpassed Rs. 9,000 crore. These orders are executable over a period of 6 years, from FY 2023-24 to FY 2028-29. Recent new orders in Q2 FY25 totaled Rs. 37 crore. New business added aligns with the strategy of higher value parts focused on 4-wheeler supplies. Orders include significant wins for structural parts for Jaguar, valued around Rs. 85 crore over lifetime. The company is seeing increased enquiries and opportunities with existing and new global OEM customers due to proven capacity and capability. The Order Book provides a solid mu

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Alicon Castalloy LtdQ3 FY24Auto Components

Alicon Castalloy Ltd Q3 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹651P/E: 27.6Market Cap: ₹1.1K CrSector: Auto Components

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→FY25 revenue guidance is Rs. 1,800 crore with 15% growth targeted.
→FY26 guidance not firm yet due to global market softening; clarity expected next quarter.
→Long-term target is Rs. 2,200 crore revenue by FY27.
→New orders booked amount to Rs. 37 crore in Q2 FY25, with a total executable order book of Rs. 9,000 crore over 6 years till 2028-29.
→Growth driven by higher value addition and critical parts, especially in Passenger Vehicles and exports.
→Expansion into hybrid and EV segments expected to boost volumes.
→Increasing automation and capacity enhancement planned to handle bigger, critical parts.
→Global market volatility (US, Europe, Middle East tension) may temporarily impact growth but expected to stabilize.
→Strong focus on new business wins with OEMs like Jaguar, Land Rover, Stellantis, and Volkswagen supports growth trajectory.

Margin guidance

Category 3

→Alicon achieved strong Q2 FY25 results with 22% YoY revenue growth and record quarterly revenue of Rs. 465 crore.
→For FY25, revenue guidance is Rs. 1,800 crore, targeting 15% growth, but near-term market softness in global demand creates some uncertainty.
→FY26 guidance is tentative; clarity expected next quarter after OEM volume projections are available amid global market volatility.
→Medium-term target includes maintaining Rs. 2,200 crore revenue by FY27 with focus on Passenger Vehicles, Commercial Vehicles, exports, and higher value-add automated manufacturing.
→EBIT and PAT growth seen with 20% YoY PBT and 16% PAT increase in Q2; EBITDA margin targeted around 15% over medium term.
→Investments in automation and critical heavier parts are expected to drive margin improvement and manufacturing precision.
→Interest cost is managed with a blended rate around 9.5%, mostly supported by internal accruals, helping protect profitability.

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Fundraise plans

Yes

→Alicon Castalloy Limited plans to invest in new equipment and automation to handle bigger and more critical parts, indicating a need for additional capacity.
→For FY25, the company anticipates a CapEx of around Rs. 150 crore, primarily focused on machinery and new product development.
→Management mentioned the need for debt to support capacity expansion but emphasized managing most of the CapEx through internal accruals.
→The blended interest cost on borrowings is around 9.5%.
→No specific mention of equity fundraising was made in the call.
→For FY26, CapEx plans may increase further depending on new business growth, but clear figures will be provided in the next quarter.
→Overall, the company is focused on controlled debt usage, leveraging internal accruals to minimize interest cost impact while funding growth investments.

Order book

Yes

→Alicon Castalloy Limited's total new order bookings have surpassed Rs. 9,000 crore.
→These orders are executable over a period of 6 years, from FY 2023-24 to FY 2028-29.
→Recent new orders in Q2 FY25 totaled Rs. 37 crore.
→New business added aligns with the strategy of higher value parts focused on 4-wheeler supplies.
→Orders include significant wins for structural parts for Jaguar, valued around Rs. 85 crore over lifetime.
→The company is seeing increased enquiries and opportunities with existing and new global OEM customers due to proven capacity and capability.
→The Order Book provides a solid multi-year revenue visibility supporting medium-term growth.

Capex plans

Yes

→FY25 CapEx is guided around Rs. 150 crore, with Rs. 100 crore already spent in H1 focusing on machinery and new product development.
→Additional CapEx expected in FY26 for capacity expansions linked to new businesses, likely less than Rs. 150-200 crore, more in the Rs. 90-100 crore range.
→Investment focus is on automation, including adding robots for handling heavier, critical parts like a 30 kg Jaguar part.
→New equipment investments are planned to handle bigger, more critical parts requiring additional capacity and higher precision.
→Emphasis on automation and advanced technologies to increase manufacturing capabilities and precision, supporting high-value, complex parts.
→Continued investments in technology-driven innovation via their Advanced Technology Center, including AI, IoT, digital process controls, and transition from HPDC to LPDC.
→CapEx aligns with strategic goals to expand in critical parts, improve automation, and add capacity for new and existing OEM customers domestically and internationally.

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