Rajoo Engineers LtdQ4 FY24

Rajoo Engineers Ltd Q4 FY24 Earnings Call Analysis

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

Price: ₹51.99P/E: 19.2Market Cap: ₹929 CrSector: Industrial Manufacturing

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3
  • The company targets a revenue growth of 17% to 20% for the next fiscal year (FY25) with improved EBITDA margins of around 13% to 15%.
  • Domestic and global markets are included in these projections.
  • The global plastic extrusion machinery market is expected to grow from USD 8.33 billion in 2022 to USD 11.6 billion by 2030.
  • The domestic plastic product market is expected to grow threefold, reaching Rs. 1,00,000 crore by 2027-28.
  • Export of plastic products is expected to increase from Rs. 40,000 crore to Rs. 1,00,000 crore, expanding global acceptance of Indian products.
  • The company plans to expand its footprint in new geographies like CIS countries, Latin America, Africa, and Southeast Asia.
  • There is significant growth opportunity in flexible packaging, semi-rigid packaging, agriculture, renewable energy, and electronics sectors.
  • The current order book of Rs. 140 crore is expected to be executed within 4 to 9 months, supporting near-term revenue visibility.

See what Rajoo Engineers Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

  • There is no mention of any current or planned fundraising through debt or equity in the provided transcript.
  • The company has conducted a share buyback of 26,176 equity shares at Rs. 210 each, indicating confidence in financial strength rather than a need for raising capital.
  • Capex plans of around Rs. 10-15 crore are being funded for land, building, and tools, but no external fundraising for these investments is mentioned.
  • Working capital increases are managed through longer payment obligations and inventory strategies without reference to new debt.
  • Overall, the management did not indicate any intentions to raise new debt or equity during the call.

See what Rajoo Engineers Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes
  • For FY25, Rajoo Engineers plans a CAPEX of Rs. 10-15 crore primarily for land, building, and tooling (especially CNC machines, including imported ones).
  • Rs. 9.33 crore was spent in FY24 on land and building for expansion, including adjacent land purchase.
  • Additional CAPEX beyond FY25 will focus on space creation to increase capacity.
  • Investments are also aligned to support growth in the solar energy segment, with machinery already supplied and more expected due to government incentives like anti-dumping duty and PLI schemes.
  • The company is actively working on strategic partnerships and technology acquisitions to offer complete, energy-efficient solutions.
  • Ongoing R&D investments aimed at developing more energy-efficient products and digital solutions to improve customer experience.
  • Expansion includes establishing a dedicated 7000 sq. ft. quality control space and a new 21,000 sq. ft. facility to enhance production capacity.

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

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