Any current/future new fundraising through debt or equity?

Currently, there is no plan for any buyback or equity fundraising. The company is holding significant cash reserves (INR 200-250 crores) and is focusing on using this cash for business expansion. Major capital expenditure (INR 70-80 crores) for FY '25 is planned for new plant setup and capacity expansion, funded internally. No capex plans or fundraising indicated for FY '26 as of now. If any capital activity like buyback or fundraising arises in the future, the company will communicate it promptly to shareholders.

Future growth expectations in sales/revenue/volumes?

Domestic camshaft sales expected to grow in line with Indian automotive OEM growth, which is trending at double digits. Significant camshaft demand increase anticipated due to new business wins from Indian OEMs previously importing parts. Machine camshaft sales to increase over next 2 years with contracts and capacity expansions in place. Electric LCV retrofitment business is in early stages; deliveries started, but numbers under 100 as of now. Growth expected but dependent on customer education and adoption. Commercial deployment of electric LCVs expanding across Indian cities includi

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

Precision Camshafts expects growth aligned with automotive OEM industry trends; if OEMs grow at double digits, they anticipate similar growth. Increasing camshaft demand driven by new contracts from Indian OEMs, including those shifting from imports. Expansion plans include setting up new plants and machining lines, with INR70-80 crores capex planned in FY25. Machine camshaft sales are targeted to increase over the next 2-3 years, supported by contracts and capacity expansions. E-mobility subsidiaries face challenges, especially EMOSS due to geopolitical and recessionary pressures in Europe; n

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Precision Camshafts LtdQ2 FY24Auto Components

Precision Camshafts Ltd Q2 FY24 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 3

Margin

Category 3

Fundraise

Order

Yes

Capex

Yes

2 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Domestic camshaft sales expected to grow in line with Indian automotive OEM growth, which is trending at double digits.
→Significant camshaft demand increase anticipated due to new business wins from Indian OEMs previously importing parts.
→Machine camshaft sales to increase over next 2 years with contracts and capacity expansions in place.
→Electric LCV retrofitment business is in early stages; deliveries started, but numbers under 100 as of now. Growth expected but dependent on customer education and adoption.
→Commercial deployment of electric LCVs expanding across Indian cities including Pune, Mumbai, Hyderabad, Kolkata, Delhi, with plans for more.
→Near-term revenue visibility is limited in retrofit business, but momentum is positive with large pan-India customers on board.
→Overseas demand, especially EMOSS business in Europe, remains sluggish due to economic challenges; North America and Europe expansion under evaluation with local certifications needed.

Margin guidance

Category 3

→Precision Camshafts expects growth aligned with automotive OEM industry trends; if OEMs grow at double digits, they anticipate similar growth.
→Increasing camshaft demand driven by new contracts from Indian OEMs, including those shifting from imports.
→Expansion plans include setting up new plants and machining lines, with INR70-80 crores capex planned in FY25.
→Machine camshaft sales are targeted to increase over the next 2-3 years, supported by contracts and capacity expansions.
→E-mobility subsidiaries face challenges, especially EMOSS due to geopolitical and recessionary pressures in Europe; no quick turnaround expected.
→Domestic retrofit electric LCV business is in early commercial deployment with positive customer feedback and expected increasing momentum.
→Overall, EBITDA and net profits have increased recently, e.g., standalone PAT margin at 10.5%, with consolidated PAT at 11.6% in Q1 FY25.
→Management cautious on providing specific forward guidance but optimistic on growth driven by product ramp-ups and new orders.

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Fundraise plans

→Currently, there is no plan for any buyback or equity fundraising.
→The company is holding significant cash reserves (INR 200-250 crores) and is focusing on using this cash for business expansion.
→Major capital expenditure (INR 70-80 crores) for FY '25 is planned for new plant setup and capacity expansion, funded internally.
→No capex plans or fundraising indicated for FY '26 as of now.
→If any capital activity like buyback or fundraising arises in the future, the company will communicate it promptly to shareholders.

Order book

Yes

- Precision Camshafts Limited has a strong order book supporting growth, as mentioned in their Q1 FY '25 earnings call. - New businesses won from Indian OEMs are aiding growth, particularly those previously importing parts. - For the retrofit electric LCV business, commercial sales have just started, so order pipeline numbers are not yet disclosed but momentum is positive. - Orders confirmed from large pan-India customers for all three variants of retrofitted LCVs (70 km, 100 km, 250 km range). - In retrofitment, initial deliveries are below 100 vehicles, with expectations to share more concrete orderbook details once volumes increase. - Expansion plans include increasing machine camshaft sales with contracts in place and setting up new capacities. - EMOSS and MFT subsidiaries face challenges; EMOSS sees reduced demand due to European economic conditions. Overall, the company is cautiously optimistic with a growing orderbook but specific pending order numbers are yet to be concretely disclosed.

Capex plans

Yes

No information is provided regarding the same in the latest conference call.

How does Precision Camshafts Ltd rank vs peers in Auto Components?

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