Any current/future new fundraising through debt or equity?

The transcript does not mention any current or planned fundraising through debt or equity. The company’s financing is currently at sub-8% interest rates with bank CC limits averaging about 7.5%. There is no discussion on new debt issuance or equity fundraising in the provided content. The focus appears to be on operational growth and capacity expansion rather than on raising additional capital through fundraising.

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

Salasar Techno Engineering Limited is planning to put up a new galvanizing plant, with final decisions expected towards the end of the year. They have plans to expand capacity in the heavy steel structures manufacturing segment once the existing plant reaches full capacity of 1000 tonnes per month. The new heavy structure plant became operational in April, with production starting in June due to lockdown; the target is to achieve monthly billing of 1000 tonnes, translating to revenue of around Rs. 9-10 crores per month. No specific details on other strategic capital investments or large-scale

Future growth expectations in sales/revenue/volumes?

Salasar Techno Engineering Limited targets a minimum of 15% year-on-year growth in sales/revenue. The company expects significant demand growth in telecom towers fueled by 5G rollout over the next 10 years, requiring at least a million new towers and 1.5 million connectivity points. Expansion plans include increasing manufacturing capacity, including a new plant targeting 1000 tonnes per month to generate over Rs. 100 crores annually. The railway electrification segment is a growing focus area, with substantial order inflows and execution expected over the next 3-7 years. The company sees cons

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

The company plans to grow at least 15% year-on-year as a minimum internal target. EBITDA margins are expected to remain stable around 10.5% to 11%, with occasional quarter-to-quarter variations. The new heavy steel structures manufacturing plant aims to achieve over 100 crores revenue annually, with EBITDA margins around 11-12%. Order book execution will span this and the next two financial years, providing steady revenue visibility. Growth in railway electrification and telecom tower segments, especially with 5G rollout, is expected to drive revenue and profit growth. The company is

Current/ Expected Orderbook/ Pending Orders?

Total order book stands at approximately ₹960 crores, comprising outstanding orders, L1 EPC orders, manufacturing orders, heavy structure unit orders, and orders in Salasar Adorus JV. EPC orders under execution total around ₹560 crores, covering railways and transmission segments. Transmission segment pending orders are about ₹400-460 crores. Railway EPC pending orders are above ₹100 crores. Railway bid book is around ₹300 crores with larger tenders underway. L1 orders awaiting LOI amount to ₹88 crores. Heavy structure division (ROB business) has an order book of roughly ₹70 crores. Metro rail

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Salasar Techno Engineering LtdQ2 FY21Industrial Manufacturing

Salasar Techno Engineering Ltd Q2 FY21 Earnings Call Analysis

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

Price: ₹6.17P/E: 64.6Market Cap: ₹1.3K CrSector: Industrial Manufacturing

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Salasar Techno Engineering Limited targets a minimum of 15% year-on-year growth in sales/revenue.
→The company expects significant demand growth in telecom towers fueled by 5G rollout over the next 10 years, requiring at least a million new towers and 1.5 million connectivity points.
→Expansion plans include increasing manufacturing capacity, including a new plant targeting 1000 tonnes per month to generate over Rs. 100 crores annually.
→The railway electrification segment is a growing focus area, with substantial order inflows and execution expected over the next 3-7 years.
→The company sees consistent opportunities in power transmission and EPC segments with an active bid book.
→EBITDA margins are expected to stay stable in the 10.5%–11% range, supporting profitable growth.
→Overall, the company remains confident about achieving higher profitable growth, driven by telecom, power, and railway sectors.

Margin guidance

Category 3

→The company plans to grow at least 15% year-on-year as a minimum internal target.
→EBITDA margins are expected to remain stable around 10.5% to 11%, with occasional quarter-to-quarter variations.
→The new heavy steel structures manufacturing plant aims to achieve over 100 crores revenue annually, with EBITDA margins around 11-12%.
→Order book execution will span this and the next two financial years, providing steady revenue visibility.
→Growth in railway electrification and telecom tower segments, especially with 5G rollout, is expected to drive revenue and profit growth.
→The company is focused on profitable project bidding, targeting sustainable margin levels.
→Overall, management is confident about achieving higher profitable growth while becoming a leading industry player.

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Fundraise plans

→The transcript does not mention any current or planned fundraising through debt or equity.
→The company’s financing is currently at sub-8% interest rates with bank CC limits averaging about 7.5%.
→There is no discussion on new debt issuance or equity fundraising in the provided content.
→The focus appears to be on operational growth and capacity expansion rather than on raising additional capital through fundraising.

Order book

Yes

→Total order book stands at approximately ₹960 crores, comprising outstanding orders, L1 EPC orders, manufacturing orders, heavy structure unit orders, and orders in Salasar Adorus JV.
→EPC orders under execution total around ₹560 crores, covering railways and transmission segments.
→Transmission segment pending orders are about ₹400-460 crores.
→Railway EPC pending orders are above ₹100 crores.
→Railway bid book is around ₹300 crores with larger tenders underway.
→L1 orders awaiting LOI amount to ₹88 crores.
→Heavy structure division (ROB business) has an order book of roughly ₹70 crores.
→Metro railway JV (Salasar Adorus) has a balance order execution value of about ₹240 crores out of ₹250 crores.
→Telecom towers have an ongoing order book of approximately ₹25 crores monthly plus export orders of ₹8-9 crores.

Capex plans

Yes

→Salasar Techno Engineering Limited is planning to put up a new galvanizing plant, with final decisions expected towards the end of the year.
→They have plans to expand capacity in the heavy steel structures manufacturing segment once the existing plant reaches full capacity of 1000 tonnes per month.
→The new heavy structure plant became operational in April, with production starting in June due to lockdown; the target is to achieve monthly billing of 1000 tonnes, translating to revenue of around Rs. 9-10 crores per month.
→No specific details on other strategic capital investments or large-scale future CAPEX were mentioned in the call.

How does Salasar Techno Engineering Ltd rank vs peers in Industrial Manufacturing?

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