Pennar Industries Ltd

- The company has not finalized its CAPEX budget for the next year yet. - They are expanding their Pre-Engineered Building (PEB) capacities in India and the US, as well as module and body-in-white businesses. - They do not anticipate raising debt or equity to finance upcoming CAPEX. - Current debt is primarily working capital debt, which tends to increase in proportion to revenue. - Interest cost is maintained below 3% of overall revenue. - Positive cash flow generation of around ₹100 crores is expected for the current year. - No specific plans for new fundraising through debt or equity were mentioned at this time.

- Pennar Industries is planning capacity expansions in several areas: - Expanding Pre-Engineered Building (PEB) capacity both in India and the US. - Scaling up Body in White (BIW) capacity in the upcoming quarter. - Increasing capacity for their module plant. - These expansions are expected to occur during the next financial year. - The Engineering Services business is also building a larger delivery team in India. - The company has not finalized the exact CAPEX budget for next year; details will be shared in the next quarter. - They do not anticipate the need to raise debt to finance this CAPEX. - Existing Board reviews for potential liquidation of excess land assets, though no new real estate expansion is planned.

- FY '24 expected to be better than FY '23 in terms of revenue and profitability (Aditya Rao). - Q4 projected to be a strong quarter for both revenue and profitability. - Pre-Engineered Building (PEB) business is at a record peak in terms of order book, with capacity being expanded in India and the US. - Body in White business and Engineering Services business expected to grow in coming quarters. - Module plant expansion planned, to be commissioned next financial year, expected to substantially grow revenue and PBT. - US and international revenues described as robust with growing order books despite global macro headwinds. - Railway order books strong but not currently translating into proportional revenue; hopes for improvement. - Solar business order book stands at approximately Rs. 800 crores, indicating significant future sales. - Overall demand environment stable with no signs of slowdown in key sectors such as automotive, construction, and infrastructure.

- FY24 expected to be better than FY23 in terms of revenue and profitability (Page 8). - Q4 FY23 projected as a strong quarter for both revenue and profitability (Page 15). - Sustained margin improvements anticipated, especially in standalone entity and higher-margin businesses like BIW (Body in White) (Page 13). - Pre-Engineered Building (PEB) division expected to maintain high margins, with US business contributing positively (Page 10). - EBITDA showed strong growth in Q3 and nine months, with 40% increase in Q3 and 30% revenue growth YoY (Page 3). - ROCE targeted at around 20% by FY23 end (annualized quarter basis) (Page 5). - Order books are robust across divisions, supporting revenue growth (Pages 7, 9, 15). - Management cautious about railway revenues translating despite strong order book (Page 17).

- Total order book across all verticals is approximately INR 1,500 crores. - Pre-Engineered Building (PEB) division order book: - India and US combined: Around INR 1,200 crores. - India alone: About INR 760 crores. - US (Ascent): Approximately INR 240 crores. - Solar business order book: Approximately INR 800 crores. - Railways order book: Around INR 156 crores, mainly from PSU customers like Integral Coach Factory and Modern Coach Factory. - Wagon orders from private sector customers such as Titagarh, Texmaco, Besco. - Orders are confirmed for the next year but some (especially railway and solar) not converting to revenue as anticipated. - Typical conversion time for PEB orders to revenue is 6-8 months. - Some solar orders delayed to next financial year due to customer-side execution delays.