DCX Systems Ltd

- Currently, DCX Systems Limited is not planning any significant CAPEX or new investments requiring major funding for the current year unless new projects demand it; only minor yearly CAPEX of Rs. 10-25 lakhs is foreseen (Page 16). - Regarding the joint venture with Elta for radar systems, CAPEX is still being finalized, estimated around Rs. 200 crore, expected to be confirmed in the next 10-15 days. Capital will be infused as cash by the company itself (Page 14-15). - There is no explicit mention of new fundraising through debt or equity in the current or near future. - The company remains debt-free due to prudent financial management and operational excellence (Page 4). - Any further capital requirements will depend on project demands and finalized agreements.

- No immediate CAPEX is being forced for the current year in DCX Systems; only small annual CAPEX of Rs. 10-25 lakhs for computers or worn-out machinery is planned. (Page 16) - For the joint venture (JV) with Elta Systems, the CAPEX is under negotiation and yet to be finalized, expected to be around Rs. 200 crore (likely above Rs. 150 crore), covering building, plant equipment, and test equipment. Finalization expected in 10-15 days. (Pages 14-15) - The JV aims to start operations within 11 months, focusing on manufacturing radar and sensor systems for defense applications. (Page 14) - CAPEX will be funded through company’s cash capital infusion; price negotiations are ongoing with suppliers. (Page 14) - Once CAPEX numbers are finalized, updates may be shared, possibly in the next quarterly conference. (Page 14)

- The railway safety business is a major focus area with a large market opportunity in India, targeting deployment on 5,000-6,000 locomotives over the next 5 years. - Export visibility includes about 1,750 units expected in other countries within 3 years. - The JV with Elta for radar systems aims to start operations within 11 months, with a planned CAPEX of around Rs. 200 crore, indicating expansion into new product segments. - Current order book execution expected over 2 years, including Rs. 2,008 crore plus Rs. 500 crore worth of orders. - Revenue growth guidance is cautious; management refrains from giving exact figures until orders are finalized. - Pending receipts from Israel customers expected to be settled within 1 to 1.5 months, potentially reflecting in FY 26 Q1 results, which can positively impact cash flows. - EBITDA margin improvement is anticipated with new orders and order book execution.

- The company expects revenues from its R&D products to start reflecting in books by next year, as the products mature and begin generating proper revenue. - EBITDA margin is expected to improve with new purchase orders (POs) compared to earlier ones, supported by better operational execution over a shorter delivery schedule (around 2 years). - The long-term PO billing and reconciliation delays (especially with customers in Israel) are anticipated to settle within 1 to 1.5 months, likely reflecting in Q1 FY '26 results, improving cash flows and profitability. - The joint venture with Elta for radar systems expects CAPEX of around Rs. 200 crore, with operations targeted to start within 11 months, contributing to growth potential. - Focus remains on high-margin railway safety business and operational excellence to push profitability beyond the current low single-digit margins. - Management cautions that margin improvements will be gradual due to BOM (bill of material) guarantee practices and pricing reconciliations with customers.

- Current outstanding order book execution period is around 2 years maximum (Page 5). - Present order book size is approximately Rs. 2,008 crore plus Rs. 500 crore, expected to be completed within 2 years (Page 5). - Long-term POs, some being 4 years old, are getting settled gradually with expected closure in 1 to 1.5 months from the time of the call (Pages 17-18). - 2-3 customers in Israel with pending amounts related to long-term POs are being reconciled and approvals are in process for recovery of pending dues (Pages 17-18). - New inquiries and order pipeline post-Operation Sindoor are promising, with a large volume of inquiries coming from India and other countries, though exact values are undisclosed until confirmed POs are received (Page 4). - Around 240-250 systems are being worked on for other countries with proposals being submitted soon (Page 11).