Salasar Techno Engineering Ltd

- The company has tied up a long-term debt of Rs.37 crores for the new galvanizing plant as part of a total CAPEX of Rs.50 crores, with Rs.12-13 crores coming from internal accruals. - For the Bhilai plant expansion, the company plans to use internal funding but is also considering raising some capital (possibly debt or equity) for that project. - Current debt level stands at Rs.227 crores, with fund-based limits of Rs.195 crores and Rs.32 crores of GECL, plus non-fund based bank guarantees of about Rs.200 crores. - The company does not expect to reduce debt in the near term because it is focusing on growth of 25%-30% next year. - No explicit mention of fresh equity fundraising during the call.

- The company is undertaking a significant CAPEX program progressing as per schedule. - Setting up a new galvanized unit with a capacity of 96,000 metric tons at unit-III in UP, expected commissioning by September 2022; this will be the largest structural galvanizing plant in Asia. - Establishing a second plant with 25,000 metric tons capacity for the heavy steel structural division in Bhilai, Chhattisgarh, costing Rs.40 crores, also expected by September 2022. - New galvanizing plant and heavy steel structure plant will enhance capacity and operational efficiency, especially for monopoles and heavy steel structures. - The Bhilai plant will help tap opportunities in Eastern India. - Planning new projects in Bhilai for welded structures with a CAPEX of Rs.40 crores. - Long-term debt tied up for galvanizing plant CAPEX—Rs.37 crores approved plus Rs.12-13 crores from internal accruals. - CAPEX aligns with expected growth in railways, telecom, and infrastructure sectors.

- Company projects top-line growth of 25%-30% for FY23 and beyond. - Revenue expected to increase from around Rs.700 crores this year to approximately four to five times within five years. - Telecom segment to grow steadily by 8%-10% per year, reaching Rs.400-500 crores in 4-5 years. - Heavy steel structures and railways electrification segments are expected to drive strong growth. - New galvanizing plant and heavy steel structure division (e.g., L&T bullet train project) to improve margins and add revenue. - Expects doubling of towers for 5G rollout over next 3-5 years, increasing demand in telecom infrastructure. - Steel plant capacity expansions in India to boost demand for prefabricated structures. - Export orders for telecom towers to Southeast Asia and Africa are ongoing. - Overall capacity utilization currently around 40%-45%, with planned expansions to meet demand.

- Salasar Techno Engineering expects revenue to grow 4 to 5 times over the next 5 years. - PAT (profit after tax) is likely to grow 6 to 7 times due to operating leverage. - EBITDA margins are currently around 10% and expected to improve slightly with new galvanizing plant and entry into higher-margin segments like monopoles and heavy steel structures. - Telecom segment growth expected at 8%-10% annually, contributing Rs.400-500 crores revenue over next 4-5 years. - Heavy steel structures and railway electrification segments are key growth drivers with better margins (~11%-12%). - Government infrastructure projects (railways, transmission, highways) provide strong demand visibility. - Operating efficiencies and better product mix expected to enhance overall profitability. - Debt levels likely to remain stable due to growth-driven CAPEX; no significant deleveraging anticipated in near term.

- Overall order book as of December 31, 2021, stands at Rs. 1,030 crores. - Breakdown: - Unexecuted EPC orders: Rs. 695 crores. - EPC orders where the company is L1 and Letters of Intent (LoI) expected: Rs. 95 crores. - Manufacturing orders under heavy steel structure unit: Rs. 163 crores. - Export orders in hand: Rs. 77 crores. - Heavy steel structure division order book increased from Rs. 61 crores (September 30, 2021) to Rs. 163 crores. - Railways project order book approximately Rs. 250-300 crores (running and unexecuted). - Telecom business order book is private and steady (~Rs. 350-400 crores expected revenue range). - The L&T bullet train project order in heavy structures is about Rs. 125 crores, with potential for increase after completion. - New plants for galvanizing and heavy steel structures are expected to further support order execution and revenue growth.