Craftsman Automation Ltd

- 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.

- 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.

- 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.

- 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.

- 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.