Any current/future new fundraising through debt or equity?

No new equity has been raised currently, including for the acquisition of DR Axion, which resulted in an increase in debt on the books. Current debt has increased due to a Rs. 375 crores outflow for the DR Axion acquisition. The company maintains a targeted debt-to-EBITDA ratio around 1.5x and is currently at 1.49x consolidated. There is a planned CAPEX increase due to new Greenfield projects and expansion in Powertrain and Aluminum segments, leading to a potential increase in absolute debt levels. Total CAPEX for FY24 may rise from the earlier Rs. 330 crores to around Rs. 480 crores i

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

Currently planned CAPEX for the financial year is around Rs. 320 crores for existing plants. Additional CAPEX of approximately Rs. 150-160 crores this year for a new Greenfield plant near the mother plant in Coimbatore (land bank of 48 acres). Further CAPEX of around Rs. 100 crores expected in FY26 for the Greenfield project. Total CAPEX including Greenfield project will be close to Rs. 480 crores. The Greenfield plant will house all three business segments, mainly Powertrain and Aluminum. CAPEX driven by large opportunities in Powertrain and Aluminum segments due to geopolitical factors and M

Future growth expectations in sales/revenue/volumes?

Powertrain segment expected to grow at a CAGR of 15%-20% from FY21 to FY26, with significant growth anticipated from FY26 onwards, especially due to new off-highway and heavier commercial vehicle segments. Aluminum segment to continue strong growth beyond FY26, backed by expanding capacity and new orders including Hyundai-Kia and Stellantis ramp-ups. DR Axion's Aluminum business showing strong growth with upcoming orders expected from FY25 with the new Telangana plant. Powertrain export opportunities to materialize from FY26 after a higher validation cycle. New Greenfield plant planned with Rs

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

Powertrain business is expected to grow at a CAGR of 15%-20% from FY21 to FY26, with bigger growth anticipated from FY26 onwards. Aluminum segment growth is set to continue strongly beyond FY26, with DR Axion ramping up new orders. Operating leverage and capacity utilization improvements will help margins sustain despite recent pressures. Margin sustainability in Aluminum segment targeting around 15% EBIT and 18%-20% EBITDA. New Greenfield project CAPEX (~Rs. 150-160 crores this year, another Rs. 100 crores in FY26) to support expansion across all segments, particularly Powertrain and Aluminum

Current/ Expected Orderbook/ Pending Orders?

The company currently has an order book close to Rs. 100 crores specifically for automated storage solutions. Within this order book, two orders exceed Rs. 20 crores, and one large order is close to Rs. 50 crores. These reflect growing acceptance and maturity in the automated storage solution market. Additionally, the company is on a ramp-up phase for the Stellantis aluminum die-casting export order, expected to peak by the September quarter of next year. The ramp-up run rate for H2 standalone aluminum business is approximately Rs. 500 crores. Expanding capacities with a new Greenfield project

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Craftsman Automation LtdQ3 FY23Auto Components

Craftsman Automation Ltd Q3 FY23 Earnings Call Analysis

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

Price: ₹9,252P/E: 51.3Market Cap: ₹20.2K 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

→Powertrain segment expected to grow at a CAGR of 15%-20% from FY21 to FY26, with significant growth anticipated from FY26 onwards, especially due to new off-highway and heavier commercial vehicle segments.
→Aluminum segment to continue strong growth beyond FY26, backed by expanding capacity and new orders including Hyundai-Kia and Stellantis ramp-ups.
→DR Axion's Aluminum business showing strong growth with upcoming orders expected from FY25 with the new Telangana plant.
→Powertrain export opportunities to materialize from FY26 after a higher validation cycle.
→New Greenfield plant planned with Rs. 150-160 crores CAPEX in current year and Rs. 100 crores in FY26 to support capacity expansion across all three business segments.
→Industrial Engineering segment, especially automated storage solutions, expected to see strong growth in H2 and beyond, with robust pending order book.
→Overall company expects balanced diversification and sustainable margins with growth driven by geopolitical factors and "Make in India" policies reducing imports.

Margin guidance

Category 3

→Powertrain business is expected to grow at a CAGR of 15%-20% from FY21 to FY26, with bigger growth anticipated from FY26 onwards.
→Aluminum segment growth is set to continue strongly beyond FY26, with DR Axion ramping up new orders.
→Operating leverage and capacity utilization improvements will help margins sustain despite recent pressures.
→Margin sustainability in Aluminum segment targeting around 15% EBIT and 18%-20% EBITDA.
→New Greenfield project CAPEX (~Rs. 150-160 crores this year, another Rs. 100 crores in FY26) to support expansion across all segments, particularly Powertrain and Aluminum.
→Export opportunities in Powertrain expected to materialize by FY26 after validation cycles.
→Debt-to-EBITDA ratio targeted to hover around 1.5x, with planned debt discipline despite expansion.
→Growth in Industrial Engineering expected as CAPEX cycles and automation orders increase.

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Fundraise plans

Yes

→No new equity has been raised currently, including for the acquisition of DR Axion, which resulted in an increase in debt on the books.
→Current debt has increased due to a Rs. 375 crores outflow for the DR Axion acquisition.
→The company maintains a targeted debt-to-EBITDA ratio around 1.5x and is currently at 1.49x consolidated.
→There is a planned CAPEX increase due to new Greenfield projects and expansion in Powertrain and Aluminum segments, leading to a potential increase in absolute debt levels.
→Total CAPEX for FY24 may rise from the earlier Rs. 330 crores to around Rs. 480 crores including new plant investments, partly funded with debt.
→The company expects debt to EBITDA ratio to trend down over time despite absolute debt fluctuations.
→No specific mention of imminent equity fundraising; focus remains on managing debt prudently.

Order book

Yes

→The company currently has an order book close to Rs. 100 crores specifically for automated storage solutions.
→Within this order book, two orders exceed Rs. 20 crores, and one large order is close to Rs. 50 crores.
→These reflect growing acceptance and maturity in the automated storage solution market.
→Additionally, the company is on a ramp-up phase for the Stellantis aluminum die-casting export order, expected to peak by the September quarter of next year.
→The ramp-up run rate for H2 standalone aluminum business is approximately Rs. 500 crores.
→Expanding capacities with a new Greenfield project will add around Rs. 150-160 crores CAPEX this year and Rs. 100 crores in FY26, targeting Powertrain and Aluminum segments.
→The pending orders and ongoing ramp-ups position the company well for growth through FY25 and FY26.

Capex plans

Yes

→Currently planned CAPEX for the financial year is around Rs. 320 crores for existing plants.
→Additional CAPEX of approximately Rs. 150-160 crores this year for a new Greenfield plant near the mother plant in Coimbatore (land bank of 48 acres).
→Further CAPEX of around Rs. 100 crores expected in FY26 for the Greenfield project.
→Total CAPEX including Greenfield project will be close to Rs. 480 crores.
→The Greenfield plant will house all three business segments, mainly Powertrain and Aluminum.
→CAPEX driven by large opportunities in Powertrain and Aluminum segments due to geopolitical factors and Make in India policies.
→Focus on backward integration in some segments to reduce imports and increase value addition.

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