Precision Camshafts Ltd

- Currently, there is no firm plan for new fundraising through debt or equity. - The company is considering setting up a separate entity for the electric mobility (EV) business in the coming years. - This separate entity might be used for raising capital to support significant capex and R&D required for developing ground-up EV products, moving beyond retrofitting. - Discussions regarding capital raising for the EV business are ongoing, but no concrete decisions have been made yet. - The company has noted a planned capex of about INR 50 crores for a new assembled camshaft plant already approved and under construction. - No other significant capex or fundraising plans have been disclosed for FY 2025 at this time.

- Precision Camshafts is building a new plant for assembled camshafts with a capex of about INR 50 crores, already sanctioned and under construction for FY 2025. - No other significant capex is planned currently besides this camshaft plant. - For the EV business, there may be future capital requirements to move from retrofitting to becoming an OEM with own ground-up products, which would entail significant capex and R&D. - The company is considering consolidating the electric mobility business into a separate entity potentially for raising capital to accelerate growth but no firm plans yet. - For the India EV conversion business, some capex is planned for setting up multiple small conversion centers, though the capex is expected to be modest, mainly involving equipped workshops rather than large automated lines. Working capital and financing partnerships are also part of the plan.

- Camshaft business is expected to grow steadily with new contracts from both Indian and overseas customers, supported by a strong order book for the next 3-5 years. - Non-engine component business is diversifying and growing, for example, MEMCO's non-engine revenue has grown from 5-6% to over 20% in 3 years. - Expansion into EV retrofit and new EV products is underway with commercial sales started; demand expected to pick up in the second half of the financial year post testing data collection. - Growth potential remains for the European EV business (EMOSS), though currently facing a slowdown due to macroeconomic factors and subsidy diversions. - Capex plans include INR 50 crore for a new assembled camshaft plant, with possible separate entity formation for the EV business to raise capital and accelerate growth. - Domestic conversion of vehicles expected to expand with multiple local setups to meet demand across India.

- Camshaft business expected to follow a normal growth path with a strong order book for the next 3-5 years; no anticipated reduction in volumes. - Consistent margins of around 10-11% projected to continue; no significant margin expansion expected in near term. - Revenue growth driven by new contracts in camshaft business (India and overseas) and new orders in MEMCO subsidiary. - European EV customer demand currently slow due to macroeconomic and geopolitical factors; recovery timeline uncertain. - Electric mobility business expansion plans may involve significant capex and R&D, potentially through a separate entity to accelerate growth. - Retrofitting of battery packs in India is ramping up with expected commercial growth in second half of FY24. - Overall consolidated EBITDA increased by 26% in the latest quarter, reflecting improving profitability. - Dividend policy under review; buyback considered to enhance EPS and shareholder value.

- Precision Camshafts Limited has a strong order book in the camshaft business for the next 3 to 5 years. - They have secured new contracts from both Indian and overseas customers, indicating growth in camshaft volumes. - MEMCO subsidiary has new orders from customers, contributing to revenue growth. - EMOSS in the Netherlands has a strong order book but is experiencing short-term demand slowdown due to macroeconomic factors in Europe. - No cancellations of orders reported in EMOSS; however, order deliveries are delayed due to economic slowdown and war-related subsidy diversions. - The company is actively engaging with customers and expects demand to pick up in Europe once macro conditions improve. - They continue to invest in new projects for automotive components and engine components to support growth. - Overall, the order book is solid with visibility of long-term contracts, though short-term market conditions may cause delays.