
Precision Camshf Q4 FY23 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Management growth scorecard
Revenue
Category 3
Margin
Category 3
Fundraise
N/A
Order
Yes
Capex
Yes
2 of 4 growth signals are positive.
Full analysisRevenue 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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