Any current/future new fundraising through debt or equity?

SJS Enterprises is debt averse and prefers not to take on new debt unnecessarily. The recent acquisition of Walter Pack was funded through debt, but the company expects to repay this acquisition-related debt by the end of Q2 FY2025. As of Q1 FY2025, the total debt was Rs.533 million, with Rs.150 million repaid during the quarter; net cash position stood at Rs.234 million. No immediate plans for new fundraising through debt or equity were mentioned. For inorganic acquisitions, the company has indicated no hurry and plans to use available cash reserves over the next year to find the right target

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

Planned capital expenditure (Capex) of approximately Rs. 80 crores for expansion at Exotech subsidiary. Around Rs. 40 crores Capex allocated for expanding the cover glass business. Additional maintenance Capex of about Rs. 15 crores per annum. Total Capex for FY2025 and FY2026 estimated in the range of Rs. 170 to 180 crores. Capacity expansion underway at Exotech and Walter Pack to meet strong demand. New plant setup for cover glass to commence phased supplies, with significant revenue impact expected by FY2026. Ongoing investments to increase captive solar power capacity from 4 MW to 10 MW to

Future growth expectations in sales/revenue/volumes?

SJS Enterprises targets to grow at 1.5x the industry growth rate, outperforming both two-wheeler and four-wheeler segments combined. Revenue from exports is expected to rise from the current 7.5% to 13%-15% of consolidated revenue within the next 3 years. Cover glass business is expected to start meaningful supply by FY2025, with significant revenue impact from FY2026. Exotech’s capacity expansion is expected to be on-stream by Q1 FY2025, contributing additional revenues from FY2026. New-generation premium products and partnerships (e.g., with Dixon) aim to drive high-value, scalable growth. T

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

SJS Enterprises expects strong growth, targeting to grow at approximately 1.5x the industry growth rate over the next 3-5 years through organic and inorganic strategies. Export revenues currently stand at 7.5% of consolidated revenue, with a target to grow to 13-15% in the next 3 years. New product portfolios, including cover glass and new-generation technologies, are expected to contribute significantly starting FY2026. EBITDA margin guidance remains stable at around 25%, despite short-term margin pressure due to new product trials and development. Robust free cash flows and a net cash positi

Current/ Expected Orderbook/ Pending Orders?

Sanjay Thapar mentioned that the cover glass business expects to receive its first purchase order by the end of the current quarter, with supplies starting in a phased manner next year. Exotech capacity is expected to be on-stream by Q1 of next year, enabling revenue augmentation. Walter Pack has multiple new programs starting from October this year to June next year, indicating a strong order pipeline. The company is aggressively bidding for large global businesses, especially targeting new product launches by global OEMs. Sanjay Thapar highlighted that new product awards typically take 6-9 m

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S J S Enterprises LtdQ2 FY24Auto Components

S J S Enterprises Ltd Q2 FY24 Earnings Call Analysis

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

Price: ₹2,144P/E: 35.7Market Cap: ₹6.1K CrSector: Auto Components

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→SJS Enterprises targets to grow at 1.5x the industry growth rate, outperforming both two-wheeler and four-wheeler segments combined.
→Revenue from exports is expected to rise from the current 7.5% to 13%-15% of consolidated revenue within the next 3 years.
→Cover glass business is expected to start meaningful supply by FY2025, with significant revenue impact from FY2026.
→Exotech’s capacity expansion is expected to be on-stream by Q1 FY2025, contributing additional revenues from FY2026.
→New-generation premium products and partnerships (e.g., with Dixon) aim to drive high-value, scalable growth.
→The acquired businesses (Walter Pack, Exotech) and new geographies will accelerate revenue growth and cross-selling opportunities.
→Strong order intake and new product launches poised to support sustained volume growth, particularly in four-wheelers and exports.

Margin guidance

Category 3

→SJS Enterprises expects strong growth, targeting to grow at approximately 1.5x the industry growth rate over the next 3-5 years through organic and inorganic strategies.
→Export revenues currently stand at 7.5% of consolidated revenue, with a target to grow to 13-15% in the next 3 years.
→New product portfolios, including cover glass and new-generation technologies, are expected to contribute significantly starting FY2026.
→EBITDA margin guidance remains stable at around 25%, despite short-term margin pressure due to new product trials and development.
→Robust free cash flows and a net cash position support further capacity expansion and acquisitions without adding high debt.
→Continued wins from key customers across passenger vehicles, consumer durables, and exports will drive revenue and profit growth.
→Capacity expansions at Exotech, Walter Pack, and cover glass business expected to start meaningful revenue contribution by FY2026.

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Fundraise plans

→SJS Enterprises is debt averse and prefers not to take on new debt unnecessarily.
→The recent acquisition of Walter Pack was funded through debt, but the company expects to repay this acquisition-related debt by the end of Q2 FY2025.
→As of Q1 FY2025, the total debt was Rs.533 million, with Rs.150 million repaid during the quarter; net cash position stood at Rs.234 million.
→No immediate plans for new fundraising through debt or equity were mentioned.
→For inorganic acquisitions, the company has indicated no hurry and plans to use available cash reserves over the next year to find the right target, implying no immediate fundraising.
→The capex for expansions at Exotech and cover glass business is planned around Rs.120 crores over FY2025 and FY2026, likely funded from internal accruals and cash flows rather than fresh fundraising.

Order book

Yes

→Sanjay Thapar mentioned that the cover glass business expects to receive its first purchase order by the end of the current quarter, with supplies starting in a phased manner next year.
→Exotech capacity is expected to be on-stream by Q1 of next year, enabling revenue augmentation.
→Walter Pack has multiple new programs starting from October this year to June next year, indicating a strong order pipeline.
→The company is aggressively bidding for large global businesses, especially targeting new product launches by global OEMs.
→Sanjay Thapar highlighted that new product awards typically take 6-9 months from award to revenue impact.
→Overall, there's a strong demand outlook with capacity expansions underway at Exotech, Walter Pack, and for cover glass to meet upcoming orders.

Capex plans

Yes

→Planned capital expenditure (Capex) of approximately Rs. 80 crores for expansion at Exotech subsidiary.
→Around Rs. 40 crores Capex allocated for expanding the cover glass business.
→Additional maintenance Capex of about Rs. 15 crores per annum.
→Total Capex for FY2025 and FY2026 estimated in the range of Rs. 170 to 180 crores.
→Capacity expansion underway at Exotech and Walter Pack to meet strong demand.
→New plant setup for cover glass to commence phased supplies, with significant revenue impact expected by FY2026.
→Ongoing investments to increase captive solar power capacity from 4 MW to 10 MW to support sustainability goals.
→Inorganic acquisition strategy continues selectively, with careful targeting of synergistic companies at good prices, aiming for acquisitions within the next year.

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