Alicon Castalloy Ltd

- 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.

- 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.

- 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.

- 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.

- 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.