Any current/future new fundraising through debt or equity?

The company currently has no short-term debt and is not utilizing bank credit facilities, indicating comfortable liquidity. Prakash Daga mentioned that the company has sufficient sanctioned credit facilities by the bank but is not using them at present. There is no indication or announcement regarding any immediate or future plans for fundraising through debt or equity in the provided discussion. The focus appears to be on maintaining healthy working capital and funding expansion primarily through internal resources. Any planned investments are geared more towards research and development rath

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

For the current year, the company does not plan any major expansion in infrastructure as the existing capacity utilization is at 70% to 75%. Any investment will focus more on research and development for product enhancement rather than on infrastructure expansion. New product development occurs occasionally, about one entirely new product per year, with current focus on enhancing existing products like Lamex. The company continues to explore technical collaborations for new product development as a constant and ongoing process. No specific future capex or strategic investment plans were detail

Future growth expectations in sales/revenue/volumes?

The company is targeting a revenue growth of around 12% to 15% for the current financial year. Order book remains strong at approximately ₹100 crore, expected to be maintained over the next two quarters. Exports contributed close to 49% of revenue last year, with a target to increase export contribution to 60-65%, which could improve margins. Focus on expanding into new export markets such as Latin America, CIS, and Eastern Europe to propel growth. Demand for flexible packaging remains robust due to continued consumer habits like purchase of packaged foods and e-commerce packaging need

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

The company targets a **top-line growth of 12% to 15%** for the current year. **EBITDA margin growth is expected around 8% to 9%**, indicating improvement in operating profitability. Focus on increasing export contribution from 49% to **60-65%** to improve EBITDA margins as exports generally yield higher margins. Strategy includes product innovation and import substitution to drive margin expansion and market share gains. Working capital is comfortable with no anticipated liquidity issues, supporting operational stability. Expansion plans are minimal for infrastructure; focus will be

Current/ Expected Orderbook/ Pending Orders?

The current order book position is approximately ₹100 crore (as of the date referenced). The company expects to maintain this order book level for the next two quarters. Positive signs indicate the potential to register similar growth as seen in the recent quarter. A significant portion of orders are priced with revised prices to mitigate risk from raw material cost fluctuations. The lead time for order execution is typically 4 to 6 months, necessitating maintaining around 200 days of inventory to support delivery. New orders are being booked with back-to-back raw material procurement to contr

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Rajoo Engineers LtdQ2 FY21Industrial Manufacturing

Rajoo Engineers Ltd Q2 FY21 Earnings Call Analysis

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

Price: ₹56.1P/E: 21.0Market Cap: ₹1.0K CrSector: Industrial Manufacturing

Management growth scorecard

Revenue

Category 3

Margin

Category 2

Fundraise

N/A

Order

Yes

Capex

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→The company is targeting a revenue growth of around 12% to 15% for the current financial year.
→Order book remains strong at approximately ₹100 crore, expected to be maintained over the next two quarters.
→Exports contributed close to 49% of revenue last year, with a target to increase export contribution to 60-65%, which could improve margins.
→Focus on expanding into new export markets such as Latin America, CIS, and Eastern Europe to propel growth.
→Demand for flexible packaging remains robust due to continued consumer habits like purchase of packaged foods and e-commerce packaging needs.
→The company plans to rely on product innovation and R&D to enhance offerings and compete globally, potentially increasing top line and volumes.
→Working capital situation is comfortable, with advance payments and unutilized credit facilities supporting growth with no immediate liquidity concerns.

Margin guidance

Category 2

→The company targets a **top-line growth of 12% to 15%** for the current year.
→**EBITDA margin growth is expected around 8% to 9%**, indicating improvement in operating profitability.
→Focus on increasing export contribution from 49% to **60-65%** to improve EBITDA margins as exports generally yield higher margins.
→Strategy includes product innovation and import substitution to drive margin expansion and market share gains.
→Working capital is comfortable with no anticipated liquidity issues, supporting operational stability.
→Expansion plans are minimal for infrastructure; focus will be on **R&D and product enhancement** to sustain growth.
→Despite raw material price pressures, price increases have been implemented to mitigate margin impact.
→COVID-related labor issues temporarily affected Q1 but are stabilizing, enabling growth continuity.

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Fundraise plans

→The company currently has no short-term debt and is not utilizing bank credit facilities, indicating comfortable liquidity.
→Prakash Daga mentioned that the company has sufficient sanctioned credit facilities by the bank but is not using them at present.
→There is no indication or announcement regarding any immediate or future plans for fundraising through debt or equity in the provided discussion.
→The focus appears to be on maintaining healthy working capital and funding expansion primarily through internal resources.
→Any planned investments are geared more towards research and development rather than infrastructure expansion this year.

Order book

Yes

→The current order book position is approximately ₹100 crore (as of the date referenced).
→The company expects to maintain this order book level for the next two quarters.
→Positive signs indicate the potential to register similar growth as seen in the recent quarter.
→A significant portion of orders are priced with revised prices to mitigate risk from raw material cost fluctuations.
→The lead time for order execution is typically 4 to 6 months, necessitating maintaining around 200 days of inventory to support delivery.
→New orders are being booked with back-to-back raw material procurement to control costs effectively.

Capex plans

→For the current year, the company does not plan any major expansion in infrastructure as the existing capacity utilization is at 70% to 75%.
→Any investment will focus more on research and development for product enhancement rather than on infrastructure expansion.
→New product development occurs occasionally, about one entirely new product per year, with current focus on enhancing existing products like Lamex.
→The company continues to explore technical collaborations for new product development as a constant and ongoing process.
→No specific future capex or strategic investment plans were detailed beyond these R&D and product innovation initiatives.

How does Rajoo Engineers Ltd rank vs peers in Industrial Manufacturing?

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1Rajoo Engineers Ltd

Rev 3Mar 2

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