Precision CamshfQ4 FY23

Precision Camshf Q4 FY23 Earnings Call Analysis

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

Price: ₹104.01P/E: 31.4Market Cap: ₹991 CrSector: Auto Components

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3
  • Camshaft business has shown significant growth, with a 24% year-on-year increase in revenue from INR 530 crores in FY22 to INR 660 crores in FY23, driven by passenger car volume growth and export business expansion.
  • Order book for current and next year is solid, with OEM partnerships in Europe, the Netherlands, Germany, Scandinavia, UK, and New Zealand supporting consistent demand.
  • New non-automotive business at MFT (Germany) is expected to contribute to future growth.
  • EMOSS business has capacity to scale volumes beyond current INR 235-240 crores revenue and expects substantial revenue growth over next 2-3 years.
  • Domestic EV retrofitment business has potential due to a large base of 2 million vehicles, with capacity expected to grow as demand picks up.
  • Overall, growth drivers include new business wins, geographic expansion, and innovative EV product offerings aligned with market trends.

See what Precision Camshf management said on margin guidance — free account, 30 seconds.

Fundraise plans

  • There is no explicit mention in the transcript of any current or future fundraising planned through debt or equity.
  • Discussion around converting loans to equity for overseas subsidiaries indicates an internal restructuring of funds rather than new fundraising.
  • Capex planned for the year includes INR 50 crores for standalone, INR 5 crores for MEMCO, and INR 30 crores for overseas (MFT), funded primarily through internal generation.
  • No reference to raising external capital for these investments.
  • The company focuses on internal funding for capacity expansion and new business initiatives like the EV retrofit plant in Solapur.
  • Overall, the emphasis is on organic growth and self-funded capital expenditure rather than new fundraising activities.

See what Precision Camshf management said on order book — free account, 30 seconds.

Capex plans

Yes
  • Standalone capex for FY24 is about INR 50 crores, earmarked for new business at PCL.
  • MEMCO expects capex of around INR 5 crores, and MFT overseas around INR 30 crores.
  • INR 65 crores spent on a 15 MW power plant at Mangalwedha, Solapur, commissioned by July 1, 2023, expected to increase margins.
  • EV initiative includes a retrofit plant in Solapur with a modest capex of INR 5-7 crores, converting an existing plant rather than large automation.
  • New camshaft and non-camshaft machining lines have received INR 70-80 crores investment recently.
  • Continued capacity expansion at EMOSS for EV powertrains, with internal generation funding most capex.
  • No current capex numbers given for future EV capacity; the retrofit model and scaling depend on market uptake.

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How does Precision Camshf rank vs peers in Auto Components?

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Rev 3Mar 3

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