PPAP Automotive

- Currently, there is no major CAPEX plan requiring substantial funding, so no significant new fundraising is planned at present. - Debt levels are intended to be maintained around Rs. 150 crores on a long-term basis, with minor quarterly or half-yearly variations as required. - The company will consider increasing debt only if a big project arises that necessitates substantial funding. - No mention of any planned equity fundraising was made in the call. - Overall, fundraising via debt or equity is not currently anticipated unless there are new significant projects or expansions.

- Currently, PPAP Automotive Limited has no major CAPEX plans. - CAPEX will mostly align with customer requirements and specific projects. - The company is evaluating customer projects and assessing capacity at current locations. - Priority is to optimize and align existing capacity across plants before considering large new investments. - Minor CAPEX may occur based on quarterly or half-yearly operational needs. - The company aims to maintain debt levels around Rs. 150 crores unless significant funding is needed for a big project. - Capacity utilization stood at 70% in Q3, indicating room for growth before large CAPEX. - Strategic focus includes increasing capacity utilization and expanding aftermarket and industrial product segments with potential 50%+ growth. - Participation in industry exhibitions and rebranding of tool room business (Meraki Precision Molds) suggests focus on strategic growth areas without immediate heavy capital deployment.

- Automotive industry growth in FY25 expected to be challenging due to post-election year but growth will continue, though at a slower pace. - Combined automotive segment (including JV) grew ~10% in topline, outperforming the market. - New product launches, like Tata Curvv with premium products, expected to boost topline. - Aftermarket vertical growing at ~50% annually, with expansion into export markets like UAE and GCC. - Capacity utilization at 70% in Q3 with scope to increase, supporting growth. - Focus on increasing per car value via premiumization and new technology offerings to OEMs such as Maruti, Tata, Mahindra, Hyundai. - Improved product mix, higher volumes, and cost efficiencies anticipated to improve revenue and profitability in FY25. - Exports for industrial and aftermarket products being developed as additional growth drivers.

- Margin improvement expected in coming year due to price compensation and softening commodity prices. - EBITDA margin improved to 9.1% (up 160 basis points YoY) with expected upward trend. - Automotive segment combined growth (including JV) about 10%, signaling positive outlook. - Volume surge, product mix improvement, lower input costs, and cost-efficiency to drive FY25 topline and bottom-line growth. - EBITDA margin target around 12% in medium term. - Capacity utilization currently at 70%; plans to increase to support revenue growth. - Growth opportunities in aftermarket (expected 9-10% margins), commercial tool room, and exports. - Lithium-ion battery business challenges persist but targeted for positive contributions in future. - Management expects FY25 to be challenging but growth to continue, supported by new products and improved operational efficiencies.

- The commercial tool room vertical has an order book of approximately 65 tools for the current financial year. - This segment is specialized and steadily gaining traction with repeat but not bulk orders. - The company is actively engaging with customers for new projects and capacity alignment before considering large CAPEX. - Battery business customers are in the certification stage, hence no immediate scale-up in orders. - Aftermarket division has established a strong network and is exploring international markets, having already exported shipments to UAE and the US. - The company is preparing for launches like Tata Curvv with an expected production of around 40,000 vehicles per year and per car revenue potential of about Rs. 4,500. - Overall, the company expects volume surges and improved product mix to aid topline growth, with CAPEX aligned to customer demands.