Rane Holdings Ltd

- No plans for any new equity fundraising or non-core asset sales for debt reduction. - Debt reduction will happen gradually over time through normal business operations and internal accruals. - Some companies within the group have zero debt; others may use a combination of debt and internal accruals. - No clear number or timeline for debt reduction, but the group aims to reduce debt to a comfortable debt-to-capital-employed ratio of about 50% from the current ~65%. - Some additional funding/investment related to legal, advisory, or advance repayments may occur till divestment transactions are completed, but these are not significant new fundraisings. - The group is still reviewing funding options for certain subsidiaries like NSK, with no definitive plan announced yet.

- INR 1,000 crores capex planned over 3 years across all businesses, with around 45-50% allocated to Occupant Safety division for inflator, webbing, and capacity expansion related to 6 airbag legislation and exports. (Page 6) - INR 500 crores capex specifically mentioned for the inflator capacity expansion in the safety division under ZF Rane over 3 years. (Page 17) - No clear split of equity versus debt funding across entities; capex to be funded through varied means including internal accruals and some debt depending on entities. (Page 16) - No plans for significant equity raises or non-core asset sales for debt reduction; debt reduction to happen gradually. (Page 8) - Investments targeted at new product development, hydraulics in Rane Madras, and significant traction in EV-related business, especially in North America. (Pages 12, 8) - Strategic intent to divest the loss-making Rane Madras US subsidiary as soon as possible to reduce financial burden. (Page 8, 16-17)

- The Rane Group expects continued positive demand momentum in FY 2023-24 with a favorable demand environment. - Exports grew 49% overall and 56% for the light metal casting India division in FY '23; growth focus remains strong on exports. - The group plans to invest approximately INR 1,000 crores over the next 3 years to support growth, including capacity expansion, especially in Occupant Safety. - New business wins of INR 145 crores in Rane Madras steering products indicate growth in domestic and international markets. - Significant traction in EV-related business, especially in North America, with orders from brands like Ford, GM, and Tesla. - Aftermarket business is being reorganized for faster growth. - Caution is maintained due to global economic headwinds, but the Indian economy's relative strength supports growth prospects. - Rane Madras growth largely dependent on domestic market; exports remain optimistic.

- Rane Group reported highest-ever aggregate revenue of INR 6,864 crores for FY23 with 18% overall growth, driven by 49% growth in international customers. - EBITDA margin improved by 272 basis points due to higher volumes and better operational performance. - Operating margins face pressure due to pricing challenges in some new programs and cost inflation, with a margin range expected to be around 6-7% for some businesses, lower than historical levels. - The group expects to maintain current commodity price levels and sustain EBITDA margins similar to Q4 FY23 but cautions Q1 margins may differ due to seasonality. - Rane Madras aims for stable margins upwards of 10%, targeting 12% for operational efficiency. - Significant new business wins in EV segments, especially in North America, indicate positive traction. - Capex of about INR 1,000 crores planned over 3 years, primarily in Occupant Safety division, expected to drive future revenue and profit growth. - Debt reduction is ongoing, aiming to improve financial health without equity raises.

- The group has a strong order book position across businesses, expected to sustain favorable demand in FY '24 despite global headwinds. (Page 4) - New orders amounting to INR145 crores have been received for Rane Madras, with execution planned over the next 2 to 3 years (FY '24 and FY '25). (Page 8) - Significant progress in export orders includes new orders from global steering suppliers Bosch and ZF in the last 6 months, adding to over INR145 crores previously mentioned. (Page 7) - The order book for NSK business remains solid for the next 3-4 years, despite margin pressures and past warranty provisions. (Page 10) - The Group's order pipeline includes EV businesses, mainly in the North American market, with increasing traction in customers like Ford, GM, and Tesla. (Page 12)