Precision Camshafts Ltd

- 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.

- 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%.

- 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).

- 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.

- 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.