Rico Auto Industries Ltd

- No specific mention of any new fundraising through debt or equity in the transcript. - The company is focusing on repaying existing debt: around INR 90 crores repayment in FY25 and INR 80 crores in FY26. - Interest costs are expected to remain stable or reduce due to repayments and no further debt increase implied. - There is discussion about potential land sale, but only if savings exceed INR 500-600 crores after costs, indicating focus on asset monetization rather than new fundraising. - Investments planned mainly for the Hosur plant expansion involve transferring equipment from Toyota and new building construction, but no indication of external capital raising.

- Rico Auto has acquired land in Hosur, Tamil Nadu, close to the Karnataka border, primarily to be closer to Toyota and facilitate transfer of component manufacturing to their plants. - Capex for the Hosur plant will involve construction of buildings and utilities; machinery will largely be transferred from Toyota's existing equipment at depreciated prices. - Discussions are ongoing with customers like CSA and TVS for new components, which may lead to further investments based on their requirements. - The company is evaluating the potential sale of land banks; only if net savings exceed INR 500-600 crores after transfers and expenses will the Board consider shifting plants. - Investments are aligned to support growth with Toyota, Maruti Suzuki, and new business wins in electric vehicle components supplying to companies like BMW, Knorr-Bremse, Piaggio, and Suzuki two-wheelers.

- Projected conservative revenue growth of 15% for FY25, mainly driven by increased business with Maruti Suzuki, Hero, and new customers like Suzuki two-wheelers. - Significant ramp-up expected from June onwards due to delayed programs starting, including new electric vehicle components for BMW and restarted orders from GKN. - New business additions include Knorr-Bremse, Case New Holland, Piaggio (clutch orders), and diversion of business from other suppliers. - Defence sector revenue cautiously guided at INR 60 crores for FY25, expected to grow much beyond INR 200-300 crores by FY26. - Long-term growth supported by strategic expansion into electric and hybrid vehicle components. - Capacity expansion underway at Hosur plant to serve Toyota and Maruti Suzuki. - Overall, management confident of exceeding set targets with better profitability and sustainable savings.

- The company is confident in achieving and likely exceeding the current year's targets, with a projected 15% revenue growth driven primarily by Maruti Suzuki and new business wins. - EBITDA margin target is around 11.5% for the year, with improvements expected over quarters, potentially exceeding 12% by year-end due to cost savings in manpower, power, and other areas. - Defence business revenue is conservatively guided at INR 60 crores for FY25 with expectations to surpass INR 200-300 crores by FY26, indicating strong growth potential. - Profitability is expected to improve due to permanent savings from cost rationalization and better utilization of equipment from discontinued or downsized programs. - New business from electric vehicle components (BMW, GKN, Knorr-Bremse, Piaggio, Suzuki Two-Wheeler) will contribute to future earnings growth. - Overall, management emphasizes cautious optimism but with confidence in sustainable earnings and margin expansion.

- Defence sector orderbook is showing traction with training ammunition orders; some orders delayed due to approval cycles but products are ready to ship. - A large fuse tender (~INR 10,000 crores over 10 years) was withdrawn but Rico expects to supply fuse components via DPSUs regardless. - Defence revenue guidance for FY25 is conservative at INR 60 crores; expected to cross INR 100 crores later; FY26 forecast is above INR 200-300 crores. - Automotive sector new orders from Maruti Suzuki, Hero, Aisin (delayed but important), Knorr-Bremse, Case New Holland, Piaggio, BMW (electric vehicle components), and Suzuki two-wheelers are driving growth. - GKN exports will restart mid-year after early program end last year. - Internal order backlog expected to generate strong turnover from June onwards. - Total revenue guidance excluding defence around INR 2,450-2,480 crores for FY25.