Frontier Springs Ltd

- 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.

- 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.

- 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.

- 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.

- 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.