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

Alicon Castalloy Limited is investing in capacity additions to support continuous growth for FY'25 and FY'26, targeting sales of over Rs. 2,200 crores. They have already invested more than Rs. 80 crores in the first 9 months of the current fiscal year and expect total investment of over Rs. 100 crores for the full year. Planned capex for the next year (FY'25) is around Rs. 120 to 130 crores to ready capacity for future growth. Investments include new equipment and machines to support a shift from small parts to bigger, critical parts like cylinder heads. Focus on upgrading technology and expan

Future growth expectations in sales/revenue/volumes?

Alicon targets a sales turnover of around INR 2,200 crores for FY 2025-26. Expected growth rate for next year (FY25) is between 16% to 18%. Incremental sales driven mainly by increased penetration in 4-wheelers, especially with customers like Maruti and Toyota. New businesses and order book additions expected to substantially contribute in FY25 and FY26. Volume ramp-up anticipated in critical parts like cylinder heads, with expected volumes of 150,000 to 170,000 units by FY25-26 from new developments. Global business share has increased to 28% and expected to grow further. Focus on high-value

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

Alicon Castalloy targets a revenue of around INR 2,200 crores by FY25-26, indicating strong growth ambitions. Expected CAGR growth rate is approximately 16%-18% for the next year. Operating earnings/EBITDA margins expected to improve driven by focus on bottom-line, margin enhancement, and ROCE improvement. ROCE has improved from 10% to 14% in recent years with aspirations to reach 19%-20% within next 2-3 years. Capacity additions and investments of ~INR 100-130 crores planned to support growth and handle more complex, higher-value parts. Incremental sales growth driven mostly by 4-wheeler segm

Current/ Expected Orderbook/ Pending Orders?

Alicon Castalloy Limited's current order book stands at approximately INR 9,000 crores as of FY2023-24. Around INR 700+ crores of this order book is expected to be executed within the current year (FY2023-24). Breakdown of order book: - 32% from EV segment. - 6% from technology agnostic (applicable to both ICE and EV). - 55% to 56% from exports/global business. - 80% to 84% from 4-wheeler segment. - 10% to 12% from 2-wheeler segment. Discussions with defense sector are ongoing; these orders are over and above the INR 9,000 crores. New orders from noise business/product declines are e

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Alicon Castalloy LtdQ4 FY25Auto Components

Alicon Castalloy Ltd Q4 FY25 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 1

Fundraise

N/A

Order

Yes

Capex

Yes

3 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Alicon targets a sales turnover of around INR 2,200 crores for FY 2025-26.
→Expected growth rate for next year (FY25) is between 16% to 18%.
→Incremental sales driven mainly by increased penetration in 4-wheelers, especially with customers like Maruti and Toyota.
→New businesses and order book additions expected to substantially contribute in FY25 and FY26.
→Volume ramp-up anticipated in critical parts like cylinder heads, with expected volumes of 150,000 to 170,000 units by FY25-26 from new developments.
→Global business share has increased to 28% and expected to grow further.
→Focus on high-value parts and export markets, including European facilities, with export target around 50% of total revenues.
→Continued investment in capacity expansions (~INR 120-130 crores for FY25) to support growth.
→Shift from 2-wheelers to higher-value 4-wheelers expected to enhance revenue and margins.

Margin guidance

Category 1

→Alicon Castalloy targets a revenue of around INR 2,200 crores by FY25-26, indicating strong growth ambitions.
→Expected CAGR growth rate is approximately 16%-18% for the next year.
→Operating earnings/EBITDA margins expected to improve driven by focus on bottom-line, margin enhancement, and ROCE improvement.
→ROCE has improved from 10% to 14% in recent years with aspirations to reach 19%-20% within next 2-3 years.
→Capacity additions and investments of ~INR 100-130 crores planned to support growth and handle more complex, higher-value parts.
→Incremental sales growth driven mostly by 4-wheeler segments, EV parts (32% of order book), and export markets (targeting 50% revenue from exports).
→New business wins, especially from Maruti, Toyota, and European customers, expected to add significantly to revenues and margins from FY25-26 onward.
→Better utilization and product mix expected to further enhance profitability and ROCE.

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Fundraise plans

The transcript does not mention any current or future plans for fundraising through debt or equity. Key points related to funding and investments are: - Alicon Castalloy Limited has been investing in capacity expansion, with capital expenditures of over Rs. 80 crore already in 9 months of the current year and an expected Rs. 120-130 crore investment planned for the next year (FY25) to support growth. - The company focuses on improving ROCE and aims to cross 20% in the next 2-3 years through higher-margin 4-wheeler business and better asset utilization. - No specific commentary or guidance regarding raising funds through debt or equity was provided during the Q3 FY24 earnings call.

Order book

Yes

→Alicon Castalloy Limited's current order book stands at approximately INR 9,000 crores as of FY2023-24.
→Around INR 700+ crores of this order book is expected to be executed within the current year (FY2023-24).
→Breakdown of order book:
→ - 32% from EV segment.
→ - 6% from technology agnostic (applicable to both ICE and EV).
→ - 55% to 56% from exports/global business.
→ - 80% to 84% from 4-wheeler segment.
→ - 10% to 12% from 2-wheeler segment.
→Discussions with defense sector are ongoing; these orders are over and above the INR 9,000 crores.
→New orders from noise business/product declines are expected to be offset by new incremental order book by FY2025-26.
→Expect 70%-80% of new efforts translating to revenue in FY2024-25, 90%-95% in FY2025-26.

Capex plans

Yes

→Alicon Castalloy Limited is investing in capacity additions to support continuous growth for FY'25 and FY'26, targeting sales of over Rs. 2,200 crores.
→They have already invested more than Rs. 80 crores in the first 9 months of the current fiscal year and expect total investment of over Rs. 100 crores for the full year.
→Planned capex for the next year (FY'25) is around Rs. 120 to 130 crores to ready capacity for future growth.
→Investments include new equipment and machines to support a shift from small parts to bigger, critical parts like cylinder heads.
→Focus on upgrading technology and expanding capacity in India and Europe for critical EV and 4-wheeler components.
→Strategic move includes developing competencies through European facilities to accelerate product development and supply to the Indian market.

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