Any current/future new fundraising through debt or equity?

As of the latest earnings call, there are no current plans to raise capital either through debt or equity. Karan Shah explicitly mentioned, "Not that I can comment on as of today," when asked about any capital raising. The company is still evaluating the capital intensity of the EMOSS business and the overall need for raising funds. They are cautious about capital raising and have not announced any firm timelines or plans related to fundraising for EV expansion or other business areas.

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

Precision Camshafts is setting up new machining plants to support growth in the camshaft business. A large solar power plant (15 MW) has been established to reduce energy costs, saving approximately INR 1 crore per month since July. The company has started work on developing a new 25-acre campus in Solapur, which will house a state-of-the-art machine shop for assembled camshafts and other niche products, and expand their electric mobility footprint. MFT in Germany plans to build production of new non-engine components in H1 of 2024. No specific capital raising plans disclosed yet for Indian EV

Future growth expectations in sales/revenue/volumes?

Precision Camshafts sees very good visibility for camshaft business growth with long-term contracts from domestic and international customers. The company has grown its camshaft business over the past two years in both casting and machined camshafts and expects this trajectory to continue. New machining plants are being set up, and assembly camshaft business from OEM customers is increasing. For the electric mobility subsidiary EMOSS, growth is expected but affected by general European market slowdown and uncertainties; demand is anticipated to pick up once market conditions improve. In India,

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

The camshaft business shows good visibility with long-term contracts from domestic and international customers and continues to grow in casting and machining segments. New machining plants are being set up, and assembly camshaft business from OEM customers has been awarded, indicating expected growth in coming years. Margin improvement efforts include a 15 MW solar power plant reducing energy costs by ~30-35%, saving around INR 1 crore per month since July 2023. EMOSS (e-mobility) business faces a current slowdown in Europe due to market uncertainties but maintains a positive long-term o

Current/ Expected Orderbook/ Pending Orders?

The company has not provided exact figures on the current or expected order book for camshaft or e-mobility businesses during the call. For the electric sub-4-ton LCVs in India, deliveries have started with several customers including government bodies and large fleet operators, but the order book is still in initial phases. The company mentioned ongoing discussions and new customer developments, especially in Europe for EMOSS electric powertrains, but specifics on pending orders were not disclosed. Long-term visibility exists for contracts in the camshaft business with domestic and internatio

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Precision Camshafts LtdQ3 FY23Auto Components

Precision Camshafts Ltd Q3 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 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Precision Camshafts sees very good visibility for camshaft business growth with long-term contracts from domestic and international customers.
→The company has grown its camshaft business over the past two years in both casting and machined camshafts and expects this trajectory to continue.
→New machining plants are being set up, and assembly camshaft business from OEM customers is increasing.
→For the electric mobility subsidiary EMOSS, growth is expected but affected by general European market slowdown and uncertainties; demand is anticipated to pick up once market conditions improve.
→In India, Precision has started deliveries of electric sub-4-ton LCVs for testing, targeting retrofit of existing fleets, with potential large addressable market due to over 2 million vehicles.
→The new Solapur facility will enhance capacity and support growth in niche and intricate products and expanded electric mobility footprint.
→Overall, the company remains optimistic but cautious due to current global and regional uncertainties.

Margin guidance

Category 3

→The camshaft business shows good visibility with long-term contracts from domestic and international customers and continues to grow in casting and machining segments.
→New machining plants are being set up, and assembly camshaft business from OEM customers has been awarded, indicating expected growth in coming years.
→Margin improvement efforts include a 15 MW solar power plant reducing energy costs by ~30-35%, saving around INR 1 crore per month since July 2023.
→EMOSS (e-mobility) business faces a current slowdown in Europe due to market uncertainties but maintains a positive long-term outlook with continued customer engagement and new applications under development.
→Indian EV offerings (sub-4 ton LCVs) have begun deliveries, with scaling-up planned post testing; this business is in an early stage, so revenue growth is anticipated but not yet quantifiable.
→Overall, earnings growth is expected with expanding camshaft capacity, margin improvements, and gradual ramp-up of the EMOSS business despite near-term challenges.

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Fundraise plans

→As of the latest earnings call, there are no current plans to raise capital either through debt or equity.
→Karan Shah explicitly mentioned, "Not that I can comment on as of today," when asked about any capital raising.
→The company is still evaluating the capital intensity of the EMOSS business and the overall need for raising funds.
→They are cautious about capital raising and have not announced any firm timelines or plans related to fundraising for EV expansion or other business areas.

Order book

→The company has not provided exact figures on the current or expected order book for camshaft or e-mobility businesses during the call.
→For the electric sub-4-ton LCVs in India, deliveries have started with several customers including government bodies and large fleet operators, but the order book is still in initial phases.
→The company mentioned ongoing discussions and new customer developments, especially in Europe for EMOSS electric powertrains, but specifics on pending orders were not disclosed.
→Long-term visibility exists for contracts in the camshaft business with domestic and international customers.
→Management is cautious about providing forward-looking revenue numbers or precise order book details given current market uncertainties, especially in Europe due to general slowdown.

Capex plans

Yes

→Precision Camshafts is setting up new machining plants to support growth in the camshaft business.
→A large solar power plant (15 MW) has been established to reduce energy costs, saving approximately INR 1 crore per month since July.
→The company has started work on developing a new 25-acre campus in Solapur, which will house a state-of-the-art machine shop for assembled camshafts and other niche products, and expand their electric mobility footprint.
→MFT in Germany plans to build production of new non-engine components in H1 of 2024.
→No specific capital raising plans disclosed yet for Indian EV expansion or EMOSS business; the company is still in early stages for OEM vehicle development and related capital intensity is not fully articulated.

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

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