Rajoo Engineers Ltd

- No plans for new borrowings or debt fundraising; company is currently debt-free. - Expansion capex of INR 20-25 crores will be funded through internal accruals. - No immediate plans for equity issuance or new equity fundraising. - Short-term borrowings noted are only bill discounts against export invoices, not new loans. - Management emphasizes managing capex and working capital through internal cash flow. - While partnerships are in pipeline, no collaborations or funding related to them are disclosed yet.

- Current capex: Existing capital work in progress around INR 2.5 crores. - Planned capex: INR 22-25 crores investment planned, to be spread over FY 2024 and FY 2025 in a phased manner. - Purpose: Investment will be primarily in building additional space, tools, and team building (especially R&D, sales, and marketing). - Capacity expansion: Additional capacity expected to increase revenue generation by about 30%, from INR 200-250 crores to around INR 275 crores. - Funding: Capex to be funded through internal accruals; no borrowing plans currently. - Revenue impact: New capex expected to contribute to revenue starting FY 2024. - Strategic focus: Heavy investment in exports, R&D for energy-efficient products, and digitalization of aftermarket services.

- The company targets a revenue growth of 15% to 18% annually over the next three years. - Current capacity supports turnover of around INR 200 crores; with planned capex of INR 20-25 crores over FY ‘24 and FY ‘25, capacity is expected to increase by about 30%, enabling revenue potential up to INR 250-275 crores. - Export contribution is aimed to increase from 35% to above 50% by FY ‘24. - Growth is supported by new product development, geographical expansion into Europe, CIS, and the Middle East, and increasing presence in packaging, agriculture, renewable, and plastic recycling sectors. - New solar sheet extrusion products target a demand for 30-40 machines over the next 2-3 years. - Operating margins are expected in the range of 12%-15%, with sustainable PAT margins around 8%-10%.

- Rajoo Engineers expects a revenue growth of 15% to 18% year-on-year for the next 3 years, supported by a clear pipeline of opportunities. - Operating margin guidance is around 12% to 15%. - Net margin guidance for FY24 is expected to improve to 8% to 10%. - Sustainable PAT margin is projected at 8% to 10% over the next few years. - Basic EPS for FY23 was INR 1.63, down 32% YoY from INR 2.40 in FY22, but improvement is anticipated with margin recovery. - Growth is driven by expansion in exports, new product lines (e.g., sheet extrusion line for solar), and capacity enhancements via INR 20–25 crore capex spread over FY24 and FY25. - The company aims to increase export contribution from 35% to above 50% of total revenue. - Continued investment in R&D and market expansion underpin future earnings growth.

- Current order book stands at INR 185 crores. - Lead time for products ranges from 3 months to 8 months. - The company is expecting high-value orders aligned with market expectations, especially from high-growth markets. - There are pipelines of partnerships and collaborations in progress, but nothing finalized or disclosed yet. - The company anticipates a revenue growth of 15% to 18% year-on-year for the next three years supported by new capacity and product innovations.