Black Box Ltd

- The acquisition of 2S Inovações Tecnológicas (INR275 crore) will be funded through a mix of internal accruals and debt. - Black Box Limited intends to use capital prudently, targeting Return on Equity (ROE) and Return on Capital Employed (ROCE) in the 25% to 30% range. - There is no indication of an immediate or planned equity fundraising in the discussed period. - Management emphasized not increasing leverage beyond necessary levels. - Free cash flow is expected to start improving in FY '27 and FY '28, potentially reducing reliance on external debt. - Deferred earnouts and additional payments related to the acquisition (up to INR100 crore) will be paid over the next two years and are subject to performance. No explicit mention of any new large-scale fundraising beyond the acquisition funding was provided in the transcript.

- Black Box Limited is focused on disciplined and strategically aligned capital allocation to support growth and profitability. - The company completed the acquisition of 2S in Brazil, expected to add around INR 500 crore of revenue in FY '27. - Integration and synergy realization from this acquisition are expected within 90 days of closing. - The company plans to invest prudently in inorganic growth, maintaining focus on returns (ROE, ROCE) and will not increase leverage unnecessarily. - Free cash flows are expected to grow in FY '27 and FY '28, supporting further capital deployment. - They continue to selectively deploy resources across six specific U.S. markets for data center projects, emphasizing technical strength and win ratio. - The broader growth strategy includes organic growth via enterprise and data center infrastructure, and inorganic growth through acquisitions aligned with strategic goals.

- Targeting revenue growth to reach $2 billion by fiscal 2029-2030, with a combined organic and inorganic CAGR of 30% to 35%. - Expect organic growth of 12% to 15% annually, with acquisitions adding incremental revenue (e.g., INR 500 crore from recent Brazil acquisition). - Order backlog expected to exceed $800 million by March 2026, supporting strong execution and revenue growth in FY '27 and beyond. - Data center business anticipated to see multi-fold jump in order bookings, from $200 million last year to $400-$600 million, driving higher growth. - Enterprise and non-data center sectors expected to grow steadily at 15% to 20%, supported by large-scale infrastructure projects and managed services. - Supply chain issues causing some near-term deferral but expected to normalize and enable revenue catch-up during FY '27. - Inorganic growth (acquisitions) viewed as margin-accretive and key to accelerating scale and market presence.

- Black Box targets EBITDA margin expansion to 10% (currently ~9%) by FY '27, with margin accretion expected from scale and acquisitions. - PAT CAGR is anticipated to be significantly higher than revenue growth as EBITDA to PAT conversion improves with scale, especially from FY '27 onwards. - FY '26 PAT impacted by a one-time exceptional charge; underlying profitability remains stable. - As revenue growth accelerates, PAT is expected to outpace top-line growth driven by margin normalization and higher contribution from high-value opportunities. - Order backlog growth and strong execution momentum provide revenue visibility, supporting sustained growth. - Organic growth targets 12%-15% CAGR, with inorganic additions aiming to achieve overall 30%-35% CAGR to reach $2 billion revenue goal by FY '30. - EBITDA CAGR expected to rise substantially with better margin profiles from large-scale projects and acquisitions. - Operational efficiencies and disciplined cost management are expected to contribute to incremental margin expansion.

- Current order book stands at approximately INR5,400 crore. - Target order book by FY '26-end is INR7,200 crore, reflecting a robust increase. - Confident about closing FY '26 with $1 billion order booking. - Q4 expected to have significant order booking to reach backlog target of $800 million. - Advanced stage orders include large data center projects from hyperscalers and major infrastructure projects like airports. - Orders backlog typically ranges from 9 months to 24 months. - Enterprise projects usually close within a year; large-scale data center projects can last 2+ years. - Order book includes annuity services recognized ratably, along with project backlogs. - Supply chain constraints have delayed execution but backlog is strong to support future revenue growth. - Acquisition of 2S Inovações Tecnológicas adds INR500 crore revenue in FY '27, order book from acquisition not included in current backlog.