Fiem Industries Ltd

- Management mentioned it is too premature to give any specific numbers on investment or fundraising. - Currently, investments discussed are mainly in manpower, technology, and skill development (software), with no orders for new machinery. - They emphasized prudent capital investment, especially regarding new plants, which will only be undertaken after receiving justified orders. - No mention of any immediate or planned equity or debt fundraising. - When a concrete business plan or milestone is ready, the company will inform stakeholders about any funding needs. In summary, as per the Q3 FY24 call, Fiem Industries has not disclosed or planned any current or near-future debt or equity fundraising.

- Current capex for Q3 FY2024 was Rs. 20.61 Crores; for nine months ended December 2023, it was Rs. 71.76 Crores. - For the new four-wheeler full LED headlamp business (export order), no additional capex is currently required; existing capacities are being utilized. - Management is prudent about major capital investments and will invest only after securing orders that justify capex (e.g., 50,000 to 100,000 vehicle sets to set up a new plant). - Current investments focus more on manpower, technology costs, software, and skill-building rather than machinery. - Future large capex will depend on milestone achievements and securing sizeable orders, especially for the four-wheeler segment. - Strategy includes cautious, step-by-step investments and leveraging existing infrastructure for new product developments. - No plans shared for JV or technology licensing; development is done in-house with external support as needed.

- Management remains optimistic for FY2025 and beyond, expecting growth as industry roadblocks are removed. - Two-wheeler industry outlook is positive with better prospects in H2 and Q4 of the current fiscal. - LED share in revenue expected to increase from current ~51% to 65-70% over 2-3 years driven by new order pipeline. - Growth in EV segment supported by expansion with over 35 EV OEM customers including Ola, TVS, Simple Energy, Ultraviolette. - Four-wheeler passenger car segment is a new growth avenue; export order for full LED headlamp has begun design and development. - New plant capex will be prudent and linked to confirmed orders; milestone for new plant generally a 50,000-100,000 vehicle order. - Incremental orders from Yamaha and other two-wheeler OEMs expected with multiple new launches upcoming. - Management cautions lead times in four-wheeler segment are long; growth expected to pick up significantly from Q4 next year onward.

- Management expects overall two-wheeler industry growth in H2 FY2024 and FY2025 to be strong, with Q4 looking optimistic. - Fiem anticipates outperformance relative to the industry driven by improved product mix and new business orders. - Growth drivers include increasing LED share in revenues from 51% currently to 65-70% over 2-3 years, driven by new LED-rich order book. - Expanding presence in four-wheeler segment, including export orders with high-end European OEMs, expected to contribute incrementally to margins and revenues over coming years. - EV two-wheeler segment revenue contribution currently at 5.6%, with a robust client base including Ola, TVS, and others, positioning for future growth despite sector subsidy changes. - Employee cost increase linked to investment in four-wheeler design and development resources; overall focus remains on margin improvement through better product and customer mix. - No immediate major capex expected for four-wheeler segment; leveraging existing capacities for initial growth.

- The company does not disclose exact numbers or detailed orderbook information publicly at this time. - Current LED share in new orders for the latest quarter is at 51%, up from 47% previously. - Most new order pipeline projects are LED-based, expected to push LED share in revenue to 65-70% in near future. - Significant breakthrough in four-wheeler passenger car segment with a full LED headlamp order for a high-end European OEM; design and development underway, purchase order and advance received. - The four-wheeler export order is in final stages with Indian OEMs as well, but lead times for development are long. - Regarding other products (USB charger, GAPS sensor with Toyo Denso), it's too early for timelines or revenue contribution. - The company prefers prudent capex based on confirmed orders; no large capex without justified order volumes.