Pritika Auto

- The company expects stable or good volume growth in the current and next financial year, driven by recovering demand and new product launches starting from the second half of this year. - Annual revenue growth of approximately 15%-20% is anticipated over the next 2-3 years. - Utilization of existing 75,000-ton capacity is projected to increase from around 65%-70% this year to 80% by next year, supporting volume growth. - New tractor-based products expected to start contributing from January next year, with major launches from March-April 2025 onwards. - Expansion initiatives (brownfield and greenfield) aim to reach 100,000 tons capacity by 2027, facilitating further sales growth. - Higher capacity utilization and product mix shift towards higher value-added large castings should also improve EBITDA per ton and margins. - Long-term outlook for the industry is positive with expected growth aligned with GDP trends and tractor industry growth, targeting about 12 lakh tractors annually in 2-3 years.

- The company expects stable to good volume growth this year and next, supported by favorable monsoon and improved distribution. - New product launches starting from H2 FY25, with sales beginning around January 2025 and launches by March-April 2025, will contribute to growth. - Anticipated revenue growth of 15-20% annually over the next 2-3 years fueled by higher capacity utilization and new product categories. - EBITDA margins expected to improve by around 1.5-2% with better capacity utilization and higher value-added product mix. - Long-term Return on Capital Employed (ROCE) target maintained at 17-18%. - Railways segment development is ongoing, with revenue impact expected beyond FY26 due to long gestation (12-18 months). - Overall, growth is driven by capacity expansion toward 1 lakh tons by FY27, new product introduction, and entry into defense and railways segments.

- Current capacity of around 70,000 tons is fully booked with orders. - The major expansion adding 20,000-22,000 tons last year is for new products expected to be utilized in H2 FY25 and next year. - Strong order book for new product launches, especially in the tractor segment, with anticipated 15-20% growth per year over the next 2-3 years. - New launches starting from January 2025, with significant inflow of orders expected in the second half of the year. - Market share increase by key customer M&M Swaraj contributing positively to order inflow. - Railways and defense segments under development; railway products expected to generate revenue post FY26 due to long gestation (~1.5 years for approvals). - Overall, stable and growing order book supported by new product launches and sector demand.

- The company aims to maintain a healthy debt-to-equity ratio. - They are open to raising equity if required. - However, as long as debt can be managed within sustainable levels, they prefer to continue with debt funding. - No specific plans for immediate fundraising were detailed, but capacity expansion is ongoing, implying potential future needs. - Capital expenditures for capacity increases and productivity improvements are relatively low (around INR 1-2 crores yearly), indicating modest funding needs. - The focus remains on organic and brownfield expansions, with a greenfield facility planned by 2027, which may involve future funding considerations.

- The company plans organic, brownfield, and greenfield capacity expansions. - Brownfield capacity additions of around 100-200 metric tons per plant are done annually. - Target to reach an installed capacity of 1 lakh tons by 2027, with capacity expansion execution starting in H2 of 2025. - Incremental capacity growth annually by 5%-10% through productivity improvements and mechanization (low-cost automation). - Annual capex for these productivity improvements is relatively low, around INR 1-2 crore. - Major capex is expected for new plants or importing precision machining equipment for high-value components. - Investment focus on upgrading machining capabilities for large, precision components like gearboxes and transmission cases. - Exploration underway for new product categories in defense and railways, expected to require further capital investment. - Expansion is aligned with anticipated customer launches and market demand over the next 2-3 years.