Any current/future new fundraising through debt or equity?

No new fundraising through acquisitions is planned for the next 2 years; the company has completed key acquisitions (DR Axion, Sunbeam, Fronberg) and aims for organic growth. The company raised about INR 1,200 crores through QIP recently, with around INR 400 crores left after land sales and spending. No plans for further M&A using remaining funds; capital primarily allocated towards capex and scaling existing operations. Standalone debt expected to be around INR 1,600 crores for the current year, dropping to INR 1,200 crores post land sale. Targeting a debt-to-EBITDA ratio between 1 and 1.5x g

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

Standalone capex for Craftsman is expected to close around INR 850 crores, covering new greenfield facilities like Kothavadi and Bhiwadi, plus maintenance capex (~INR 200 crores). Kothavadi facility Phase 1 capex incurred around INR 80 crores this year; Bhiwadi has completed approx. INR 150 crores capex excluding land. Land purchase for Bhiwadi (~25 acres) is a significant cost (~INR 130 crores). No large acquisitions planned for next 2 years; focus on organic growth and optimizing existing assets. Investment in technology upgradation through learning from customers. QIP fund (~INR 1,200 crore

Future growth expectations in sales/revenue/volumes?

FY ’25 standalone growth expected to be in line with H1 performance; consolidated growth will be significant due to subsidiaries' consolidation and Bhiwadi plant operation in Q4. The Sunbeam acquisition added approx. INR 1,200 crores in revenue; turnaround underway with growth expected in export business. Bhiwadi alloy wheel plant to generate around INR 100 crores revenue in the current year, with full utilization targeting INR 300-350 crores revenue range post ramp-up. Kothavadi plant’s machining revenue expected mainly from FY ’26, with significant contributions from FY ’27 onward. A

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

FY'25 standalone growth is expected to be similar to H1 growth; consolidated growth will be significant due to subsidiaries and new plant operations (Page 12). Revenue guidance for FY'26 consolidated is upward of INR 7,000 crores due to acquisitions and expansions (Page 2). EBITDA margins for standalone Craftsman expected to sustain in high teens (18-19%) despite transition challenges with subsidiaries (Page 12). Sunbeam EBITDA expected to be in transition for another year; overseas subsidiaries are EBITDA positive but single-digit (Page 12). Industrial engineering margins expected to improve

Current/ Expected Orderbook/ Pending Orders?

General castings, machine tool castings, windmill castings order book is over INR 100 crores currently. Engine business order book is also over INR 100 crores, with a long development cycle of 18-24 months. Automated storage solutions have an order book of around INR 250 crores as of now. The long-gestation nature of automated storage solution orders means revenue conversion takes 10-15 months per order. Stationary racking business has established itself, ending undercutting, with positive margin outlook from Q3 onwards. Growth in automated storage solutions expected, with new orders

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Craftsman Automation LtdQ3 FY24Auto Components

Craftsman Automation Ltd Q3 FY24 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

→FY ’25 standalone growth expected to be in line with H1 performance; consolidated growth will be significant due to subsidiaries' consolidation and Bhiwadi plant operation in Q4.
→The Sunbeam acquisition added approx. INR 1,200 crores in revenue; turnaround underway with growth expected in export business.
→Bhiwadi alloy wheel plant to generate around INR 100 crores revenue in the current year, with full utilization targeting INR 300-350 crores revenue range post ramp-up.
→Kothavadi plant’s machining revenue expected mainly from FY ’26, with significant contributions from FY ’27 onward.
→Automated storage solutions order book stands at around INR 250 crores, with revenues growing gradually due to long gestation (10-15 months). Consistent revenue expected upon order book reaching INR 500 crores.
→Consolidated revenue target for FY ’26 is upward of INR 7,000 crores due to acquisitions and capacity ramp-up.
→Export potential is high especially for Sunbeam and synergistic growth expected across aluminum divisions.

Margin guidance

Category 3

→FY'25 standalone growth is expected to be similar to H1 growth; consolidated growth will be significant due to subsidiaries and new plant operations (Page 12).
→Revenue guidance for FY'26 consolidated is upward of INR 7,000 crores due to acquisitions and expansions (Page 2).
→EBITDA margins for standalone Craftsman expected to sustain in high teens (18-19%) despite transition challenges with subsidiaries (Page 12).
→Sunbeam EBITDA expected to be in transition for another year; overseas subsidiaries are EBITDA positive but single-digit (Page 12).
→Industrial engineering margins expected to improve from Q3 onwards due to order stabilization and end of market undercutting (Page 7).
→New automated storage solutions segment expected to contribute higher margins and revenue growth over coming years (Pages 7-8).
→Debt levels planned to reduce to comfortable 1-1.5x EBITDA range by FY'27 after land sale and moderating capex (Page 13).

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Fundraise plans

Yes

→No new fundraising through acquisitions is planned for the next 2 years; the company has completed key acquisitions (DR Axion, Sunbeam, Fronberg) and aims for organic growth.
→The company raised about INR 1,200 crores through QIP recently, with around INR 400 crores left after land sales and spending.
→No plans for further M&A using remaining funds; capital primarily allocated towards capex and scaling existing operations.
→Standalone debt expected to be around INR 1,600 crores for the current year, dropping to INR 1,200 crores post land sale.
→Targeting a debt-to-EBITDA ratio between 1 and 1.5x going forward; the current increase is due to a one-time step-up, unlikely to be repeated.
→No mention of fresh equity or debt fundraising beyond these parameters.

Order book

Yes

→General castings, machine tool castings, windmill castings order book is over INR 100 crores currently.
→Engine business order book is also over INR 100 crores, with a long development cycle of 18-24 months.
→Automated storage solutions have an order book of around INR 250 crores as of now.
→The long-gestation nature of automated storage solution orders means revenue conversion takes 10-15 months per order.
→Stationary racking business has established itself, ending undercutting, with positive margin outlook from Q3 onwards.
→Growth in automated storage solutions expected, with new orders coming at fair pricing, and order book pipeline aiming for INR 500 crores for consistent revenue.

Capex plans

Yes

→Standalone capex for Craftsman is expected to close around INR 850 crores, covering new greenfield facilities like Kothavadi and Bhiwadi, plus maintenance capex (~INR 200 crores).
→Kothavadi facility Phase 1 capex incurred around INR 80 crores this year; Bhiwadi has completed approx. INR 150 crores capex excluding land.
→Land purchase for Bhiwadi (~25 acres) is a significant cost (~INR 130 crores).
→No large acquisitions planned for next 2 years; focus on organic growth and optimizing existing assets.
→Investment in technology upgradation through learning from customers.
→QIP fund (~INR 1,200 crores) primarily allocated to capex plans; no major M&A focus.
→Export and production expansion supported by new facilities and acquisitions like Fronberg.
→Capex for subsidiaries (Sunbeam, DR Axion, Fronberg) is separate from standalone Craftsman capex.

How does Craftsman Automation Ltd rank vs peers in Auto Components?

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