Any current/future new fundraising through debt or equity?

The company currently has sufficient liquidity on hand and is not using any debt. Interest costs have reduced due to repayment of term loans on an installment basis. No mention was made of any planned or ongoing new fundraising through debt or equity. The company is focusing on sustainable growth and moderate capex (around Rs. 8-10 Crores) mainly for tooling capacity enhancement. No specific plans for raising funds via equity or new debt were indicated in the conference call.

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

Planned capex for the coming financial year is estimated around Rs. 8 Crores to 10 Crores, mainly focused on tooling. Tooling capex is needed to sharpen infrastructure and produce high-value, high-output machines to stay competitive. No current production has started on the recently purchased land; production may begin next year. The company is consolidating its product portfolio with a focus on new applications from existing products rather than expanding it broadly. Future product development includes targeting renewable energy applications, such as machinery for components used in solar pan

Future growth expectations in sales/revenue/volumes?

Rajoo Engineers targets revenue growth of around 12% to 15% in the near term with slight improvement in EBITDA margins. The company expects sustainable growth despite uncertainties, focusing on consolidating product portfolio and new applications from existing products. Capacity utilization is currently around 75-80%, with plans for tooling-related capex (~₹8-10 Crores) to sharpen infrastructure for higher output machines. Focus on high-value, high-output machinery rather than significantly increasing machine numbers (currently 100-120 machines sold on average). Expansion of exports to

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

The company expects revenue growth of around 12% to 15% going forward. (Prakash Daga, Page 11) EBITDA margins may see a slight increase with overall growth. (Prakash Daga, Page 11) The focus is on sustainable growth amid market uncertainties, targeting about 12% to 15% growth this year. (Khushboo Doshi, Page 7) PAT margin for nine months FY2022 was 6.85%, with a slight decrease due to volatile raw material costs, but profits have shown marginal growth. (Page 4) Basic EPS for nine months FY2022 improved to Rs. 1.25 from Rs. 1.15 YoY. (Page 4) Future capex (approx. Rs. 8-10 Crores) aimed at tool

Current/ Expected Orderbook/ Pending Orders?

The transcript does not explicitly mention the current or expected order book or pending orders in quantifiable terms. However, it indicates positive demand trends with consistent revenue growth of around 12-15%. Management highlights gradual market recovery post-pandemic, with an increase in machine lifting in Q3 due to execution of delayed orders. Export markets are expanding across various regions including Europe, Africa, Asia, CIS countries, and Latin America. The company is focusing on business sustainability and expects demand to sustain, especially in packaging and renewable energy-rel

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Rajoo Engineers LtdQ4 FY23Industrial Manufacturing

Rajoo Engineers Ltd Q4 FY23 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 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Rajoo Engineers targets revenue growth of around 12% to 15% in the near term with slight improvement in EBITDA margins.
→The company expects sustainable growth despite uncertainties, focusing on consolidating product portfolio and new applications from existing products.
→Capacity utilization is currently around 75-80%, with plans for tooling-related capex (~₹8-10 Crores) to sharpen infrastructure for higher output machines.
→Focus on high-value, high-output machinery rather than significantly increasing machine numbers (currently 100-120 machines sold on average).
→Expansion of exports to new geographies such as Latin America, CIS countries, and Europe is underway to increase overseas revenue contribution (currently ~47-55%).
→The company’s strategy includes targeting growing sectors like packaging, renewable energies, and infrastructure-related markets to drive future revenue growth.
→Outlook remains optimistic with gradual market recovery post-pandemic impact expected to support better margins and volume growth.

Margin guidance

Category 3

→The company expects revenue growth of around 12% to 15% going forward. (Prakash Daga, Page 11)
→EBITDA margins may see a slight increase with overall growth. (Prakash Daga, Page 11)
→The focus is on sustainable growth amid market uncertainties, targeting about 12% to 15% growth this year. (Khushboo Doshi, Page 7)
→PAT margin for nine months FY2022 was 6.85%, with a slight decrease due to volatile raw material costs, but profits have shown marginal growth. (Page 4)
→Basic EPS for nine months FY2022 improved to Rs. 1.25 from Rs. 1.15 YoY. (Page 4)
→Future capex (approx. Rs. 8-10 Crores) aimed at tooling and high-value machinery to increase revenues. (Page 8)
→Optimistic outlook for export expansion and market recovery supporting growth. (Pages 7, 9)
→New products focusing on renewable energy and applications to drive growth. (Page 8)

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Fundraise plans

→The company currently has sufficient liquidity on hand and is not using any debt.
→Interest costs have reduced due to repayment of term loans on an installment basis.
→No mention was made of any planned or ongoing new fundraising through debt or equity.
→The company is focusing on sustainable growth and moderate capex (around Rs. 8-10 Crores) mainly for tooling capacity enhancement.
→No specific plans for raising funds via equity or new debt were indicated in the conference call.

Order book

→The transcript does not explicitly mention the current or expected order book or pending orders in quantifiable terms.
→However, it indicates positive demand trends with consistent revenue growth of around 12-15%.
→Management highlights gradual market recovery post-pandemic, with an increase in machine lifting in Q3 due to execution of delayed orders.
→Export markets are expanding across various regions including Europe, Africa, Asia, CIS countries, and Latin America.
→The company is focusing on business sustainability and expects demand to sustain, especially in packaging and renewable energy-related applications.
→The focus remains on high-value, high-output machinery production, potentially increasing order sizes in the coming periods.
→Overall, the company is optimistic about order growth and has started supplying to new geographies, indicating a healthy order pipeline.

Capex plans

Yes

→Planned capex for the coming financial year is estimated around Rs. 8 Crores to 10 Crores, mainly focused on tooling.
→Tooling capex is needed to sharpen infrastructure and produce high-value, high-output machines to stay competitive.
→No current production has started on the recently purchased land; production may begin next year.
→The company is consolidating its product portfolio with a focus on new applications from existing products rather than expanding it broadly.
→Future product development includes targeting renewable energy applications, such as machinery for components used in solar panel manufacturing.
→The company is optimistic about growth and expects sustainable revenue growth of 12%-15%.
→No mention of diversification into areas like lithium-ion battery wrapping under current infrastructure, but monitoring market opportunities.

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

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1Rajoo Engineers Ltd

Rev 3Mar 3

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