Current/ Expected Orderbook/ Pending Orders?

Current order book is full for the financial year, targeting ₹150 to ₹160 crores in sales for the year. As of Q2FY24, around ₹70 crores have been executed, with ₹80 crores expected in the remaining half of the year. The company mentioned continuous tender inflow from Indian Railways, wagon builders, and others, ensuring order book replenishment. Orders worth approximately ₹1.5 to ₹2 crores faced dispatch delay due to inspection changes but are now regularised. The company expects continuous order inflow and execution, with no significant order backlog pending beyond the current financi

Any current/future new fundraising through debt or equity?

The company is currently funding its capital expenditure entirely through internal accruals, with no plans to take on bank loans or financial institution debt. There is no mention of any new fundraising through equity in the recent transcript. CapEx of around ₹11-12 crores is planned, including investments in the Air Spring Division and a new 6-tonne hammer in forging, all funded internally. Management emphasized they are capable of managing growth and expansions through internal resources, avoiding additional debt load on the company.

Any current/future capex/capital investment/strategic investment?

Current CapEx of around Rs. 11-12 crore is underway, primarily for expanding Air Spring division and forging capacity. Air Spring division CapEx includes Rs. 7 crore already spent and Rs. 5 crore planned, aiming to raise production capacity to 200 coach sets per month. Investment in a new 6-tonne hammer in forging segment costing around Rs. 10 crore. CapEx funded entirely through internal accruals without additional debt. These investments will support ramping up production and revenue growth, targeting Rs. 500 crore top-line by FY27. Expansion to be completed by end of this fiscal year or ear

Future growth expectations in sales/revenue/volumes?

Targeting ₹160 crore sales in the current financial year, with ₹70-80 crore achieved in H1 and expecting the balance in H2. Expecting around ₹15 crore revenue from the Air Spring segment in FY24, growing to ₹50 crore by FY25. Total revenue aimed at ₹500 crore by FY27, supported by growth in coil springs, forging, and Air Spring segments. Forecasting 20-25% annual growth rates post FY24. Capacity utilization currently at ~60% for forging and ~70% for coil springs, with air spring capacity fully free and ready for expansion. Forging segment expected to grow faster, targeting ~45% share

Future growth expectations in earnings/operating earnings/profits/EPS?

The company aims to achieve ₹500 crore revenue by FY27, growing from around ₹160 crore in FY24. EBITDA margin is expected to improve from around 15% in FY24 to between 15-18% in the coming years. Air Springs segment, with high margins (23-24% EBITDA), is expected to contribute significantly, targeting ₹50 crores revenue by FY25 and ₹150-200 crores market size in two years. Forging segment, currently ~30% of revenue, is growing rapidly and expected to reach 45% share by ₹500 crore revenue mark. Coil spring segment operates at ~15% EBITDA margin, with capacity utilisation around 70%. M

Frontier Springs LtdQ2 FY24

Frontier Springs Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,280.6P/E: 25.8Market Cap: ₹1.5K Cr

Management growth scorecard

Revenue

Category 2

Margin

Category 1

Fundraise

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

Targeting ₹160 crore sales in the current financial year, with ₹70-80 crore achieved in H1 and expecting the balance in H2.
Expecting around ₹15 crore revenue from the Air Spring segment in FY24, growing to ₹50 crore by FY25.
Total revenue aimed at ₹500 crore by FY27, supported by growth in coil springs, forging, and Air Spring segments.
Forecasting 20-25% annual growth rates post FY24.
Capacity utilization currently at ~60% for forging and ~70% for coil springs, with air spring capacity fully free and ready for expansion.
Forging segment expected to grow faster, targeting ~45% share of ₹500 crore revenue by FY27.
Conservative approach in estimates but confident to capitalize on new markets including defense and exports.
EBITDA margins are expected to improve to 15-18% as revenues scale.

Margin guidance

Category 1

The company aims to achieve ₹500 crore revenue by FY27, growing from around ₹160 crore in FY24.
EBITDA margin is expected to improve from around 15% in FY24 to between 15-18% in the coming years.
Air Springs segment, with high margins (23-24% EBITDA), is expected to contribute significantly, targeting ₹50 crores revenue by FY25 and ₹150-200 crores market size in two years.
Forging segment, currently ~30% of revenue, is growing rapidly and expected to reach 45% share by ₹500 crore revenue mark.
Coil spring segment operates at ~15% EBITDA margin, with capacity utilisation around 70%.
Modest CapEx planned to support growth but expected to be limited beyond current expansions.
Company expects continuous order inflow, particularly from Indian Railways and defense sectors, supporting earnings growth.
EPS reported highest ever in recent quarter, reflecting improving profitability trajectory.

See what Frontier Springs Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

The company is currently funding its capital expenditure entirely through internal accruals, with no plans to take on bank loans or financial institution debt.
There is no mention of any new fundraising through equity in the recent transcript.
CapEx of around ₹11-12 crores is planned, including investments in the Air Spring Division and a new 6-tonne hammer in forging, all funded internally.
Management emphasized they are capable of managing growth and expansions through internal resources, avoiding additional debt load on the company.

Order book

Yes

Current order book is full for the financial year, targeting ₹150 to ₹160 crores in sales for the year.
As of Q2FY24, around ₹70 crores have been executed, with ₹80 crores expected in the remaining half of the year.
The company mentioned continuous tender inflow from Indian Railways, wagon builders, and others, ensuring order book replenishment.
Orders worth approximately ₹1.5 to ₹2 crores faced dispatch delay due to inspection changes but are now regularised.
The company expects continuous order inflow and execution, with no significant order backlog pending beyond the current financial year.
Orders for air spring segment expected to increase by ₹15 to ₹20 crores.

See what Frontier Springs Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes

Current CapEx of around Rs. 11-12 crore is underway, primarily for expanding Air Spring division and forging capacity.
Air Spring division CapEx includes Rs. 7 crore already spent and Rs. 5 crore planned, aiming to raise production capacity to 200 coach sets per month.
Investment in a new 6-tonne hammer in forging segment costing around Rs. 10 crore.
CapEx funded entirely through internal accruals without additional debt.
These investments will support ramping up production and revenue growth, targeting Rs. 500 crore top-line by FY27.
Expansion to be completed by end of this fiscal year or early next.
Future CapEx requirements expected to be minimal, mostly small amounts for internal requests.
Strategic focus includes diversification into defense components and aligned with Indian Railways and ‘Make in India’ initiatives.

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