Rane Holdings Ltd

- No explicit mention of current or planned new fundraising through debt or equity in the call transcript. - Capital expenditure (capex) of around INR 600 crores planned over 3 years for Rane Madras, funded from own funds/business. - Debt reduction is a focus, with the aim to reduce gross debt by approximately INR 150 crores over the next 12-18 months, using land sale proceeds and internal cash flows. - Debt levels for Rane Madras expected to reduce from INR 764 crores to around INR 600 crores by March 2027. - No indication of raising new equity or additional debt; emphasis is on internal cash generation and prudent use of existing resources.

- Rane Madras is planning a capex of around INR600 crores over three years ('25-'26 to '27-'28), approximately INR200 crores per annum. - Rane Steering Systems Limited (RSSL) expects limited capex of about INR40 crores considering new orders. - Capex includes investments to support new orders and expansion. - The company is conscious about capex intensity and aims to fund capex from internal accruals partly to reduce debt. - Capex is a mix of growth and maintenance, though specific breakup is not provided. - Strategic focus is on synergies from recent merger, cost reduction, and order wins in automotive sector. - No current plan for diversification into non-automotive sectors like aerospace; focus remains on automotive. - Improvement in margins expected post capex and new order execution around FY 2027-28. This summarizes the current and near-future capex plans and strategic investments based on the discussion.

- New orders won (~INR650 crores YTD) will mature over 1.5 to 2 years, contributing to future revenue growth. - Domestic market growth expected to be robust across passenger vehicles, commercial vehicles, and farm tractors, driving volumes up. - Aftermarket business anticipated as a significant growth driver due to strong share and penetration. - Exports expected to maintain similar mix levels (around 22-25%) over the next 1-2 years despite domestic growth. - Capacity utilization at Rane Steering Systems (RSSL) around 80-85%, with limited capex planned (~INR40 crores) to support new orders. - Overall positive industry outlook with increasing demand driven by improved affordability, financing, GST reductions, and strong agricultural sentiment. - Planning exercises underway, directional 3 to 5-year top-line guidance to be provided post current quarter closure.

- Rane Madras targets 11% to 12% EBITDA margin by March 2027, aiming for consistent double-digit margins within 12 to 18 months (Pages 8, 16, 17). - Growth driven by robust domestic volumes across passenger vehicles, commercial vehicles, and farm tractors, along with aftermarket growth, is expected to be sustained (Page 17). - New business wins totaling INR650 crores in the current year signal strong future revenue streams with long-term programs lasting 5-6 years (Page 16). - Cost reduction initiatives post-merger, including synergies in procurement, logistics, and warehousing, are expected to improve margins gradually (Page 5). - Rane Steering Systems anticipated to improve margins starting FY 2027-28 as new programs stabilize and low-margin past orders phase out (Page 10). - EBITDA growth is expected alongside revenue increases, but near-term warranty provisions and labor code impacts may moderate margin expansion (Pages 5, 15). - Debt reduction and operational efficiencies support sustainable profitability and EPS growth over the medium term (Pages 11, 17).

- Rane Madras has won new business worth INR650 crores in the current year till date (Page 17). - Recent order wins for Rane Madras amount to approximately INR130 crores in Q3 (Page 4, 17). - These new orders include both replacement and new business, expected to mature in 1.5 to 2 years (Page 17). - Each order typically spans a 5 to 6-year time frame, with some being replacement programs (Page 15). - Order pipeline from Mexico involving Ford, GM, and Honda mentioned but details unclear (Page 4). - Rane Steering Systems is running at 80% to 85% capacity utilization with limited capex around INR40 crores planned due to new orders (Page 15). - New orders will lead to future revenue growth but may not impact immediately (Page 4, 17).