Craftsman Automation Ltd

- There is no explicit mention of any current or planned new fundraising through debt or equity in the provided transcript. - The company has incurred debt for the acquisition of DR Axiom India Private Limited (INR 375 crores). - Debt-to-equity ratio increased to 0.72 due to acquisition financing. - Management expects to reduce debt by at least INR 200 crores next year after planned INR 300 crores capex. - Financial costs are projected around INR 150-160 crores on a consolidated basis. - Capex guidance for FY24 includes approximately INR 30 crores for DR Axion and INR 320-330 crores for Craftsman standalone, which is planned to be funded within current resources. - No new fundraising is indicated; focus is on debt reduction and operational investment.

- FY ’24 capex guidance for the core Craftsman business is around INR 320-330 crores, with about INR 100 crores adding to net block (capacity expansion and modernization). - Capex for DR Axion is expected to be around INR 30 crores or less, mostly for maintenance and modest capacity enhancements. - Past capex (~INR 309 crores) focused on technological upgrades, addressing bottlenecks, and balancing areas. - Craftsman plans to invest in semi-automation, modernization of machinery, and improved work practices to support 20% CAGR growth without increasing headcount. - There is capacity expansion planned, with DR Axion expected to increase capacity by about 10-20% by July. - No plans for large rash decisions on big capacity additions; focus is on improving ROCE while scaling. - Potential small backward integration if supply chain bottlenecks occur with auto-powertrain growth.

- Craftsman expects a robust growth runway of at least 3 years with clear visibility, targeting 20%+ growth across segments in FY 2024. - Auto powertrain segment: 22%-25% top-line growth; value addition growing by about 20%-24%. - Aluminium and industrial engineering segments also projected to grow 20%-25% on both top-line and value addition. - Company is confident of sustained growth for 6 years, driven by India's growing manufacturing GDP share (currently ~5% vs China’s 45%). - Growth driven by infrastructure expansion, rising market aspirations, and China Plus One strategy. - Off-highway vehicles and diesel generator exports expected to pick up from Q3 onwards. - Passenger vehicle and commercial vehicle segments expected to scale up from Q2-Q3, with new clients and higher tonnage trucks adding value. - DR Axion acquisition to aid growth, targeting EBITDA margins around 15%-17% with further capacity expansion planned.

- Craftsman Automation has demonstrated consistent strong growth with FY23 EBITDA up 25% and PAT up 48%, aided by the new tax regime. - The company targets 20% year-on-year growth in value addition across all three segments (auto powertrain, aluminium products, industrial engineering). - Auto powertrain segment value addition grew 24% in FY23; aluminium 27%; industrial engineering 38%. - EBITDA margins for the business are expected in the 15%-17% range in good years, with 14% as a base; DR Axion EBITDA was ~14% in FY23 with potential for improvement. - Debt reduction of approximately INR 200 crores is expected next year, improving financial health. - The company sees growth visibility of at least 3 years at 20% CAGR, with optimism extending to 6 years due to India's growing manufacturing footprint and market expansion. - Capex of around INR 320-330 crores planned for FY25 to support 20%+ growth, improving ROCE over time. - EPS showed strong growth (INR 75.94 to INR 112.53) and is expected to grow aligned with EBITDA and revenue growth.

- Craftsman has mentioned an order win of INR 150 crores related to aluminum, expected to start in Q2. (Page 11) - Stellantis order is scaling up in Q3. (Page 11) - A domestic SUV manufacturer order will commence production in July; Craftsman is a second supplier for a critical part under validation. (Page 11) - DR Axion has sufficient orders with capacity utilization around 80%, with a headroom for growth by another 20%-25%. (Page 14) - Discussions are ongoing for DR Axion orders in passenger vehicle EV business, but details are not disclosed. (Page 14) - Order pipeline looks promising; capacity increases are planned to support growth. (Page 11)