Craftsman Automation Ltd

- 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.

- 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.

- 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.

- 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).

- 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.