Current/ Expected Orderbook/ Pending Orders?

Current confirmed order book peak program value: INR 1,900 crores per year (Page 6). Of this, 53% of orders are for EVs, and the balance for IC engines, including wheels for motorcycles (Page 6). Incremental new orders added in the last quarter: INR 300 crores (Page 6). One significant BMW order secured with potential peak production value of almost INR 100 crores annually; other BMW orders are still pending (Page 19). Defense orders are pending due to a lengthy tender and trial process; one order is already won, but others await retendering and approvals, with expected announcements in the co

Any current/future new fundraising through debt or equity?

Currently, there is no plan for new fundraising through debt or equity. (Page 19) The company is focusing on reducing existing debt and expects debt levels to come down starting the end of the current year. (Pages 9, 12, 17) The capex for the next fiscal year is expected to be around INR 50-55 crores, significantly lower than the previous year, reducing the need for incremental funding. (Pages 9, 11, 17) Management is actively seeking a large single investor for funding but prefers not to break up the amount. Discussions are ongoing with potential investors. (Page 7) No new loans are c

Any current/future capex/capital investment/strategic investment?

FY '23 capex was around INR 200 crores, primarily due to the Toyota project capitalization and merging of subsidiaries (p16-17). FY '24 capex guidance is approximately INR 55 crores excluding dies; including dies, total capex expected is around INR 90-95 crores (p11, 14). Dies investment (INR 35-40 crores) is regular for machine running; amortized and sometimes advances received from customers like Toyota and Renault (p11-14). One new die-casting machine specific to AISIN project is arriving (p17). No immediate large-scale investments planned; capex in FY '24 expected to be below depreciation

Future growth expectations in sales/revenue/volumes?

The company anticipates a revenue growth of around 15% to 16% for FY '24. They expect both domestic and export markets to contribute similarly in percentage terms to growth, with domestic numbers being larger in absolute terms. Visibility for FY '24 revenue is about INR 2,700 crores, with ambitions to exceed this and cross INR 2,800 crores. Growth is expected in both two-wheeler and passenger vehicle segments. Export markets are expected to improve further, especially if geopolitical issues like the Russia-Ukraine war resolve. New orders, including around 53% from EV and hybrid segme

Future growth expectations in earnings/operating earnings/profits/EPS?

The company expects to maintain or improve EBITDA and PBT levels going forward, with plans already in place to show better results in upcoming quarters. Margins for FY24 are targeted to be at least at Q4 FY23 levels, with management indicating potential for quarter-on-quarter margin improvement. EBITDA for FY24 is expected to be around INR 300 crores plus, supporting significant free cash flow and enabling debt reduction. Net profit is anticipated to reach around INR 100 crores in the coming year, maintaining or improving margins from Q4 FY23. Revenue growth guidance for FY24 is around 15%-16%

Rico Auto Industries LtdQ4 FY23

Rico Auto Industries Ltd Q4 FY23 Earnings Call Analysis

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

Price: ₹103.53P/E: 39.0Market Cap: ₹1.4K Cr

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Order

Yes

Capex

Yes

2 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

The company anticipates a revenue growth of around 15% to 16% for FY '24.
They expect both domestic and export markets to contribute similarly in percentage terms to growth, with domestic numbers being larger in absolute terms.
Visibility for FY '24 revenue is about INR 2,700 crores, with ambitions to exceed this and cross INR 2,800 crores.
Growth is expected in both two-wheeler and passenger vehicle segments.
Export markets are expected to improve further, especially if geopolitical issues like the Russia-Ukraine war resolve.
New orders, including around 53% from EV and hybrid segments, provide strong growth potential.
The company is optimistic about doubling EV order volumes as component availability improves.
Over 3-5 years, the company expects significant growth, potentially aiming to become a INR 5,000 crore revenue company before 5 years.

Margin guidance

Category 3

The company expects to maintain or improve EBITDA and PBT levels going forward, with plans already in place to show better results in upcoming quarters.
Margins for FY24 are targeted to be at least at Q4 FY23 levels, with management indicating potential for quarter-on-quarter margin improvement.
EBITDA for FY24 is expected to be around INR 300 crores plus, supporting significant free cash flow and enabling debt reduction.
Net profit is anticipated to reach around INR 100 crores in the coming year, maintaining or improving margins from Q4 FY23.
Revenue growth guidance for FY24 is around 15%-16%, with domestic and export markets contributing similarly in percentage terms.
The company aims to achieve sustained growth driven by exports and domestic market expansion in two-wheeler and passenger vehicle segments.
Long term, there is optimism about achieving a INR 5,000 crores revenue company within 5 years, leveraging India's large population and EV market growth.

See what Rico Auto Industries Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

Currently, there is no plan for new fundraising through debt or equity. (Page 19)
The company is focusing on reducing existing debt and expects debt levels to come down starting the end of the current year. (Pages 9, 12, 17)
The capex for the next fiscal year is expected to be around INR 50-55 crores, significantly lower than the previous year, reducing the need for incremental funding. (Pages 9, 11, 17)
Management is actively seeking a large single investor for funding but prefers not to break up the amount. Discussions are ongoing with potential investors. (Page 7)
No new loans are currently planned except for one small LC of about INR 11-12 crores. (Page 17)

Order book

Yes

Current confirmed order book peak program value: INR 1,900 crores per year (Page 6).
Of this, 53% of orders are for EVs, and the balance for IC engines, including wheels for motorcycles (Page 6).
Incremental new orders added in the last quarter: INR 300 crores (Page 6).
One significant BMW order secured with potential peak production value of almost INR 100 crores annually; other BMW orders are still pending (Page 19).
Defense orders are pending due to a lengthy tender and trial process; one order is already won, but others await retendering and approvals, with expected announcements in the coming quarters (Pages 13,15,19).
Total targeted sales for next year around INR 2,700 to 2,800 crores, indicating visible order inflows supporting 15-16% growth (Pages 6, 20).

See what Rico Auto Industries Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes

FY '23 capex was around INR 200 crores, primarily due to the Toyota project capitalization and merging of subsidiaries (p16-17).
FY '24 capex guidance is approximately INR 55 crores excluding dies; including dies, total capex expected is around INR 90-95 crores (p11, 14).
Dies investment (INR 35-40 crores) is regular for machine running; amortized and sometimes advances received from customers like Toyota and Renault (p11-14).
One new die-casting machine specific to AISIN project is arriving (p17).
No immediate large-scale investments planned; capex in FY '24 expected to be below depreciation (INR 110 crores) (p9-14).
Long-term land acquisition and possible plant shift in Gurgaon is under discussion but will take ~1.5 years (p9).
Future investment will start on receipt of confirmed orders, especially in defense and export segments (p15-16).
Overall, capex to be conservative and aligned with production and order inflows (p15-17).

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Rico Auto Industries Ltd Q4 FY23 Earnings Call Analysis

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What Rico Auto Industries Ltd's management said in earlier quarters