Rico Auto Industries Ltd

- The company plans to raise new debt for ongoing investments, while simultaneously repaying existing long-term debt. - Long-term debt repayment target for the current year is INR140 crores. - The Board has directed a debt reduction of about 10%, and management is working to reduce overall debt from INR660 crores. - New debt will be raised mainly to finance capex projects like the Hosur plant and expansions at other facilities. - No explicit mention of new equity fundraising was made in the call. - Focus is on improving working capital efficiency and reducing leverage alongside selective debt raising. - The sale or monetization of surplus Gurgaon land is under consideration to support financial goals, but only if it benefits shareholders.

- Hosur plant capex: INR220-230 crores spread over 3 years (FY'26-FY'28). Expected turnover of INR350-400 crores with better margins from car business including electric and hybrid vehicles. - FY'26 capex at Hosur: Around INR70 crores; FY'27: INR100 crores; balance in third year. - Additional capex of about INR150-155 crores planned in FY'25-'26 including dies and equipment. - Investment in building and equipment related to expansion for customers like Maruti, Toyota, GKN (exports), and Knorr-Bremse. - Utilization improvements in casting capacities to reduce need for immediate new furnaces; furnace additions planned 2 years out. - Focus on cost reduction through power savings (solar, wind, efficient furnaces) and manpower optimization. - Strategic focus on growth in exports, 4-wheelers, commercial vehicles, railways, and defence segments. - Exploring monetization of prime Gurgaon land for potential shareholder returns.

- FY'26 sales turnover target: INR 2,652 crores, about 20% growth over previous year. - FY'27 sales expected to reach INR 3,100+ crores based on orders in hand. - Orders of INR 720 crores picked up last year, implementing over 3 years, with INR 150 crores added this year and INR 320 crores next year. - Additional INR 650 crores worth orders targeted for FY'26 onwards, with INR 70 crores already secured for immediate production. - Export growth projected from INR 351 crores in FY'25 to approx INR 380 crores in FY'26 and INR 500+ crores by FY'27. - Focus on increasing exports and domestic demand for 4-wheelers, commercial vehicles, railways, and defense segments. - Utilization of existing capacities improving, especially in castings and new business areas like defense and railways. - Overall volumes expected to rise with better capacity utilization and new project implementations.

- Target turnover for FY26 is INR2,652 crores, about 20% growth over the previous year. - Exports expected to rise to INR380 crores in FY26 and surpass INR500 crores by FY27. - Orders of INR720 crores received last year will contribute INR150 crores in FY26 and INR320 crores in FY27, with full run rate in 3 years. - Margins targeted to improve to 13%-14% company-wide; exports deliver higher margins of 15%-20%. - Cost reductions in manpower, power savings (solar, wind), and improved productivity are expected to boost profitability. - Working capital and long-term debt are targeted to reduce, improving financial health. - Defense and railway businesses expected to contribute INR100-150 crores with better margins. - New Hosur plant capex of INR220-230 crores expected to generate around INR350-400 crores revenue with premium margins. - Management confident of margin and utilization improvement starting FY26, with significant growth from exports and domestic 4-wheelers.

- Last year, Rico Auto Industries secured orders worth INR 720 crores, with production already started on some. - This year, they are adding approximately INR 150 crores in orders and expect around INR 320 crores additional next year, totaling INR 420 crores from these orders. - The company targets to pick up another INR 650 crores in new orders this year; out of that, INR 70 crores have already been confirmed. - The order execution is planned over three financial years, with orders progressively entering production. - Orders include both domestic and export customers, with a strong focus on exports expected to grow significantly. - The export orderbook includes key customers like GKN and Knorr-Bremse; exports are projected to increase from INR 380 crores this year to over INR 500 crores next year. - The expected turnover this year stands at INR 2,650 crores, up from INR 2,225 crores last year, fueled by the orderbook.