Any current/future new fundraising through debt or equity?

The company is investing in expanding production capacity, including a new building costing approximately INR 30 crores, but no explicit mention of raising new funds through debt or equity is made. There is mention of inorganic growth opportunities and potential acquisitions under consideration, with hopes to announce something potentially by the end of the current quarter, but details are not disclosed. The company has utilized IPO proceeds (around INR 63 crores) for product line investments. No direct statements regarding plans for new debt or equity fundraising were provided in the gi

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

New production hall being built for aluminium die casting expansion, an 18-month project; expected to relieve current 80% utilization stress and bring utilization back to ~50%. Investment planned in expanding electronic manufacturing capacity in Poland, currently running at ~50% utilization. Around INR 30 crore allocated for building physical infrastructure expansion. Capex includes new electronic lines in India and Poland, SMT machines, moulding machines, test and calibration equipment for solar inverter production. Solar string inverter capacity is being increased, including development of 1

Future growth expectations in sales/revenue/volumes?

The company aims for a medium to long-term top-line growth rate of about 20% to 25%. Current capacity utilization for aluminium die casting is around 60% overall, with some processes at 80%, indicating room for volume growth after expansions. A new production hall expansion project (about 18 months timeline) will add capacity, temporarily reducing utilization to ~50%, allowing future growth. Electronic manufacturing plant in Poland operates at ~50% utilization, offering significant scope for growth without immediate capacity constraints. The company plans to limit the number of key cus

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

The company targets a medium to long-term top-line growth of 20% to 25%. EBITDA margins are expected to improve to around 18% to 20% within one to one and a half years, up from current levels (~13-15% in some quarters). Adjusted EBITDA growth has been strong, with a 48% increase at the group level recently. Expansion plans include increasing aluminium die casting capacity and utilizing underutilized capacity in Poland (currently ~50% utilization). The company is onboarding innovative and long-term projects in electric vehicles expected to stabilize costs soon. Management moderates growth pace

Current/ Expected Orderbook/ Pending Orders?

The management did not explicitly mention the exact current or expected orderbook value or pending orders in the provided transcript. However, they discussed launching four to five challenging and futuristic projects related to electrical cars with clients like Mallian and Valeo. These contracts are long-term, running for 5 to 8 years, indicating a healthy order pipeline for the Alucast division. The company aims to grow its customer base moderately, focusing on about 20 customer groups, balancing large and moderate customers to ensure efficient portfolio management. They target a growth rate

Rishabh Instrum.Q2 FY24

Rishabh Instrum. Q2 FY24 Earnings Call Analysis

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

Price: ₹655.2P/E: 31.4Market Cap: ₹2.5K Cr

Management growth scorecard

Revenue

Category 2

Margin

Category 1

Fundraise

N/A

Order

N/A

Capex

Yes

2 of 3 growth signals are positive.

Full analysis

Revenue guidance

Category 2

The company aims for a medium to long-term top-line growth rate of about 20% to 25%.
Current capacity utilization for aluminium die casting is around 60% overall, with some processes at 80%, indicating room for volume growth after expansions.
A new production hall expansion project (about 18 months timeline) will add capacity, temporarily reducing utilization to ~50%, allowing future growth.
Electronic manufacturing plant in Poland operates at ~50% utilization, offering significant scope for growth without immediate capacity constraints.
The company plans to limit the number of key customers (~10 large and 10 moderate) to maintain economies of scale and manage alloy diversity, targeting managed portfolio growth.
Growth is moderated by challenges like manpower and management bandwidth, particularly in Europe.
Inorganic growth via acquisitions is also planned but not included in current growth forecasts.
Overall, a disciplined growth approach targeting 20-25% growth in sales/revenue/volumes is expected.

Margin guidance

Category 1

The company targets a medium to long-term top-line growth of 20% to 25%.
EBITDA margins are expected to improve to around 18% to 20% within one to one and a half years, up from current levels (~13-15% in some quarters).
Adjusted EBITDA growth has been strong, with a 48% increase at the group level recently.
Expansion plans include increasing aluminium die casting capacity and utilizing underutilized capacity in Poland (currently ~50% utilization).
The company is onboarding innovative and long-term projects in electric vehicles expected to stabilize costs soon.
Management moderates growth pace based on capacity, manpower, and talent availability, especially in Europe.
ESOP-related costs will continue but EBITDA guidance of ~18% is after adjustment for these costs.
Potential inorganic growth via acquisitions is being pursued but no guaranteed deals yet.

See what Rishabh Instrum. management said on margin guidance — free account, 30 seconds.

Fundraise plans

The company is investing in expanding production capacity, including a new building costing approximately INR 30 crores, but no explicit mention of raising new funds through debt or equity is made.
There is mention of inorganic growth opportunities and potential acquisitions under consideration, with hopes to announce something potentially by the end of the current quarter, but details are not disclosed.
The company has utilized IPO proceeds (around INR 63 crores) for product line investments.
No direct statements regarding plans for new debt or equity fundraising were provided in the given pages.
The firm is seeking government grants/subsidies such as MSIP scheme (India) and EU grants (Poland) for innovation and capex, which provide cash assistance but are not debt/equity fundraising.
The management is conservative about growth projections and financial planning, with no indication of immediate fundraising needs.

Order book

The management did not explicitly mention the exact current or expected orderbook value or pending orders in the provided transcript.
However, they discussed launching four to five challenging and futuristic projects related to electrical cars with clients like Mallian and Valeo.
These contracts are long-term, running for 5 to 8 years, indicating a healthy order pipeline for the Alucast division.
The company aims to grow its customer base moderately, focusing on about 20 customer groups, balancing large and moderate customers to ensure efficient portfolio management.
They target a growth rate of about 20% to 25%, moderated by capacity and talent availability.
Overall, the long-term projects and strategy indicate a strong inflow of orders with cautious and sustainable scaling aligned with delivery capabilities.

See what Rishabh Instrum. management said on order book — free account, 30 seconds.

Capex plans

Yes

New production hall being built for aluminium die casting expansion, an 18-month project; expected to relieve current 80% utilization stress and bring utilization back to ~50%.
Investment planned in expanding electronic manufacturing capacity in Poland, currently running at ~50% utilization.
Around INR 30 crore allocated for building physical infrastructure expansion.
Capex includes new electronic lines in India and Poland, SMT machines, moulding machines, test and calibration equipment for solar inverter production.
Solar string inverter capacity is being increased, including development of 100 kW inverters and related testing equipment.
Building investment supported by MSIP scheme (25% cash assistance) from Indian government; Maharashtra government support also sought.
Applied for European Union innovation and automation grants covering approximately 30% to 40% of investment.
Exploration of inorganic growth opportunities (acquisitions) ongoing with possible announcements by quarter-end.

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