Craftsman Automation Ltd

- The company plans to continue investing in capacity expansion, especially in the Powertrain segment, for the next 5 to 10 years, implying ongoing capital expenditure needs. - Debt-to-EBITDA is currently at 2.5; target is to reduce it to around 1.5 after the growth phase. - Debt reduction is anticipated starting FY '27 onwards, mainly through sale of land valued at about INR 350 crores, though the company is waiting for the best price and is not in a hurry to sell at lower valuations. - No explicit mention of new equity fundraising; focus is on managing and reducing debt while scaling capacity. - Capex for the current fiscal year is around INR 1,000 crores, indicating significant ongoing investment needs, likely funded through debt and internal accruals. - No direct comments on fresh debt issuance, but given ongoing expansion, some incremental debt or refinancing may be expected.

- Craftsman Automation is continuing to invest heavily in the Powertrain segment, focusing on ICE (Internal Combustion Engine) rather than EV, expecting to invest over the next 5 to 10 years. - Near-term, the company plans 5% to 10% capacity additions in the Powertrain business starting January. - Stand-alone capex for Craftsman is around INR 1,000 crores for the current year to support significant revenue growth. - DR Axion is setting up a new plant, which will impact margins short-term due to pre-operative costs but expected to drive margin expansion in 3-4 years. - Capacity additions include ramping up the new alloy wheel plant at Shoolagiri, targeting 60-70% utilization by Q3 next year with margin improvement. - Continued strategic alignment and scaling with subsidiaries to strengthen global competitiveness, including investments in automation and productivity improvements. - Evaluating land sale strategically to reduce debt and fund growth without selling below optimal price.

- Industrial Engineering segment: Expected growth in high single digit to low double digit range. - Powertrain segment: Similar growth expected as Industrial Engineering, around high single digit to low double digit. - Aluminium products: Anticipated to grow in the high teens. - Commercial Vehicle and Tractor segments: Commercial vehicles showing marginal growth with positive outlook; tractors performing well this financial year with expected further volume increases. - Alloy wheels: Capacity utilization expected to reach 60-70% by Q3 next year with margin improvements. - Expansion plans: Continued investments in Powertrain over next 5-10 years to capture growing ICE demand. - Export potential growing, especially for Sunbeam in aluminium products. - New premium 2-wheeler vehicles and outsourcing trends expected to boost revenues. - Overall company targeting steady annual growth with expanding capacity and product mix.

- Powertrain and Industrial Engineering segments expected to grow in high single to low double digits; aluminium products projected to grow in high teens. (Page 12) - Industrial & Engineering segment’s EBIT margin improvement is sustainable with potential for further margin expansion due to operating leverage. (Page 5) - Sunbeam is on track for margin improvement, targeting around 10% EBITDA level by end of next financial year from current ~7%. (Page 4) - DR Axion anticipates margin normalization post new plant ramp-up; margin expansion expected over next 3 to 4 years as older projects complete. (Page 12) - Aluminium business margins may appear volatile due to fluctuating raw material prices but expected to remain stable on a gross margin basis in the long term. (Pages 13-14) - Capacity expansions across segments indicate continued investment to support revenue and margin growth over medium term. (Pages 12-14)

- The company is inching towards an annual order level of around $60 million, with the balance $30-$40 million expected to be tied up in the next year or so. - Craftsman Automation aims to reach $100 million in revenue by FY '29 or FY '30. - Demand for products, especially in stationary engines, remains high with customers gearing up for peak requirements by 2030. - DR Axion has received significant orders, leading to the construction of a new plant. - The Powertrain business continues to receive more inquiries, prompting ongoing capacity expansions. - There is an upsurge in orders currently, reflecting positive momentum in multiple segments. - Sunbeam is seeing increased export potential and medium-sized aluminium company growth over the next 2 years.