Any current/future new fundraising through debt or equity?

Karan Shah mentioned regarding capital investment for the retrofitment EV project that he does not have the exact numbers offhand and will need to get back on that. There was no explicit mention of any current or planned fundraising through debt or equity in the provided transcript. The focus discussed was on scaling up retrofitment with relatively low CAPEX requirements, mainly needing space and people rather than large machinery. No specific plans for external capital raising or fund infusion were disclosed during this Q1 FY24 earnings call extract.

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

Approximately INR 5 to 7 crores has been spent on the plant setup for the electric vehicle retrofitment facility at Solapur. Retrofiiting business is not highly capital intensive; it mainly needs people, supply chain, and technology rather than large machinery or equipment. The rollout of pilot electric LCV vehicles is planned for the next quarter; full in-house developed LCV OEM projects will take a few years. Expansion plans include setting up satellite plants near major customers to scale up capacity quickly. No specific future capex numbers disclosed yet; management mentioned needi

Future growth expectations in sales/revenue/volumes?

The traditional engine camshaft business is expected to continue growing, supported by long-term OEM contracts worldwide (India, North/South America, Europe, Asia). The Indian automotive market volume is expected to double in 5-6 years, implying growth opportunities. Component business revenues: 20-25% expected from non-engine components in the next 3-4 years, while engine components remain a focus. Market for traditional vehicles is not shrinking but growing with increased electric vehicle penetration. EMOSS e-mobility business in Europe has significant long-term growth potential, with a heal

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

Precision Camshafts expects continued growth over the next 3-4 years, targeting consistent expansion despite EV market shifts. Approximately 20%-25% of component business revenue is expected to come from non-engine components, while engine component businesses (camshafts, MEMCO, MFT) will also grow. The Indian auto market is expected to double in volumes in 5-6 years, providing strong growth opportunities. Market share, currently around 9%-10% globally, is expected to increase to 14%-15% over the next 3-4 years. EMOSS’s European e-mobility business sees challenges but maintains a healthy order

Current/ Expected Orderbook/ Pending Orders?

Precision Camshafts Limited has visibility of contracted business from OEMs globally for the next 5 to 7 years across multiple regions including North and South America, Japan, Korea, India, Uzbekistan, and Europe. The company has a healthy and promising order book for the next 2 to 3 years, providing good visibility on future business. Despite a slowdown in Europe and some delays, there have been no cancellations of orders. The company expects continued growth and is not seeing its business plateau at current levels. For the e-mobility subsidiary EMOSS, although Q1 FY24 revenues dipped due to

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Precision Camshafts LtdQ2 FY23Auto Components

Precision Camshafts Ltd Q2 FY23 Earnings Call Analysis

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

Price: ₹151P/E: 29.3Market Cap: ₹1.5K CrSector: Auto Components

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→The traditional engine camshaft business is expected to continue growing, supported by long-term OEM contracts worldwide (India, North/South America, Europe, Asia).
→The Indian automotive market volume is expected to double in 5-6 years, implying growth opportunities.
→Component business revenues: 20-25% expected from non-engine components in the next 3-4 years, while engine components remain a focus.
→Market for traditional vehicles is not shrinking but growing with increased electric vehicle penetration.
→EMOSS e-mobility business in Europe has significant long-term growth potential, with a healthy order book over 2-3 years, despite short-term slowdown.
→EV retrofitment business targeting sub-4 ton LCVs in India has large opportunity (2 million vehicles) with pilot deliveries starting in Q3 FY24; scalable with demand.
→The overall group targets sustained growth based on diversification and expanding global market share (currently 9-10%, aiming higher).

Margin guidance

Category 3

→Precision Camshafts expects continued growth over the next 3-4 years, targeting consistent expansion despite EV market shifts.
→Approximately 20%-25% of component business revenue is expected to come from non-engine components, while engine component businesses (camshafts, MEMCO, MFT) will also grow.
→The Indian auto market is expected to double in volumes in 5-6 years, providing strong growth opportunities.
→Market share, currently around 9%-10% globally, is expected to increase to 14%-15% over the next 3-4 years.
→EMOSS’s European e-mobility business sees challenges but maintains a healthy order book and growth potential, though quarter-to-quarter volatility exists.
→MFT targets breakeven at 80% capacity utilization and is growing steadily.
→Overall, the company expects CAGR in double digits across businesses, leveraging diversified products and markets to grow earnings and profits.

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Fundraise plans

→Karan Shah mentioned regarding capital investment for the retrofitment EV project that he does not have the exact numbers offhand and will need to get back on that.
→There was no explicit mention of any current or planned fundraising through debt or equity in the provided transcript.
→The focus discussed was on scaling up retrofitment with relatively low CAPEX requirements, mainly needing space and people rather than large machinery.
→No specific plans for external capital raising or fund infusion were disclosed during this Q1 FY24 earnings call extract.

Order book

Yes

→Precision Camshafts Limited has visibility of contracted business from OEMs globally for the next 5 to 7 years across multiple regions including North and South America, Japan, Korea, India, Uzbekistan, and Europe.
→The company has a healthy and promising order book for the next 2 to 3 years, providing good visibility on future business.
→Despite a slowdown in Europe and some delays, there have been no cancellations of orders.
→The company expects continued growth and is not seeing its business plateau at current levels.
→For the e-mobility subsidiary EMOSS, although Q1 FY24 revenues dipped due to European slowdown and summer shutdowns, the order book remains promising for coming years.
→The company is rolling out pilot electric driveline vehicles for testing in Q3 FY24 with about 10 to 15 customers on MOUs or LOIs, aiming for ramp-up post testing and data collection.

Capex plans

Yes

→Approximately INR 5 to 7 crores has been spent on the plant setup for the electric vehicle retrofitment facility at Solapur.
→Retrofiiting business is not highly capital intensive; it mainly needs people, supply chain, and technology rather than large machinery or equipment.
→The rollout of pilot electric LCV vehicles is planned for the next quarter; full in-house developed LCV OEM projects will take a few years.
→Expansion plans include setting up satellite plants near major customers to scale up capacity quickly.
→No specific future capex numbers disclosed yet; management mentioned needing to assess capital requirements based on customer usage and real-world applications.
→European subsidiary EMOSS can scale quickly by adding space and people, with no fixed capacity constraint.
→MFT subsidiary expects to break even at 80% capacity utilization, currently at 70%.

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