JTEKT India Ltd

- No significant new debt fundraising planned currently for CAPEX; in FY'24-'25, Rs. 287 crore CAPEX was largely funded through internal accruals. - Increase in bank borrowing was minimal, about Rs. 43-95 crore, indicating reliance on internal resources. - Debt-equity ratio remains low at 0.17, suggesting borrowing capacity is still available if needed. - CAPEX of Rs. 760 crore planned over three years (FY'23-26), mostly self-funded. - No mention of equity fundraising in the transcript. - Management comfortable with current debt levels and prefers funding through internal accruals. - Focus remains on efficient capital deployment rather than external fundraising at this time.

- Rs. 287 crores CAPEX incurred in FY 2024-25, mainly for capacity expansion including: - Third CPS line at Bawal (capacity increase from 10 lakhs to 15 lakhs units) - Fifth manual gear line at Dharuhera (capacity from 24 lakhs to 29 lakhs units) - Two more manual gear lines (sixth at Dharuhera, fourth at Chennai) expanding capacity to 36 lakh units - New CVJ line with Rs. 90-100 crores CAPEX targeted for July 2025 production - Total Rs. 760 crores CAPEX planned over 3 years (FY 2023-26) covering capacity expansion, maintenance, IT, backward integration, pressure die casting plant expansion, and technical center enhancements - Additional Rs. 250-650 crores planned for a new plant in Gujarat (Jalisana) starting FY 2027-28 as phase one of a two-phase expansion to establish footprint in western India and support growth - Parent company JTEKT Corp plans Rs. 1800 crore (approx. 30 billion Yen) CAPEX in India by FY 2028, focused on making JTEKT India a global hub with expanded exports and new products - Export orders (e.g., to Brazil) and new product launches are key drivers for CAPEX utilization

- The company does not provide specific long-term revenue CAGR targets, linking growth to OEM performance and overall market demand. - Passenger vehicle market expected to grow at 3%-5% annually, supported by positive industry outlook and infrastructure developments. - JTEKT supplies about 50%-55% of Maruti Suzuki's requirements, so growth is closely tied to Maruti, Toyota, and other OEMs. - Expansion in Western India aligns with anticipated OEM growth, including new plants by Toyota and Maruti. - CAPEX of about Rs. 1,800 crore planned by parent company in India by FY'28, mainly to increase capacity for existing products and exports. - Export share expected to rise from ~4% to 6%; exports critical for absorption of capacity expansion. - New product launches (e.g., CVJ for multiple OEMs) and capacity ramp-up planned by FY'27-'28. - Market news suggests passenger vehicle sales in India to reach 5 million units by 2030, the largest worldwide.

- JTEKT India foresees growth aligned with the overall automotive industry and OEM performance, particularly Maruti Suzuki and Toyota. - Passenger vehicle market expected to grow 3%-5% continuously, supporting company growth. - New capacities for manual gear, CPS, and CVJ lines are ramping up by July 2025-'26, leading to better operating leverage and improved profitability. - CVJ margins expected to improve due to new product introductions and supplying bigger vehicles with better pricing and technology. - Replacement market for CVJ is a future opportunity but currently focusing on strengthening OEM business before aftermarket expansion. - One-off expenses affecting current margins are not expected to recur, leading to margin improvement in upcoming years. - Management is focused on cost reductions, employee cost optimization, and asset utilization to enhance profitability. - Export share is set to increase from around 2%-4% to 6%+, positively impacting earnings. - The company does not provide explicit EPS or operating profit CAGR guidance but is optimistic about improved margins and growth trajectory.

- JTEKT India has good visibility on orders related to the current CAPEX of around Rs. 759 crores, which is for expansion of existing and known orders. - The company is working on expanding CVJ product orders, currently supplying two models (Toyota Hyryder and Maruti Grand Vitara) and planning to add a third Maruti Suzuki model soon. - Capacity utilization for CVJ is at 65-70%, with plans for a second production line to meet expected demand increases by July 2025. - Export orders have begun, such as a significant order from JTEKT Brazil for manual gear, with exports also to the US and potential growth to 4-6% of sales. - The management expects ramp-up in production and utilization, targeting 100% utilization of new capacities by March 2027. - Discussions are ongoing to broaden CVJ supplies beyond Maruti and Toyota, indicating a growing order pipeline in both domestic and export markets.