Sandhar Technologies Limited

- Currently, the company is comfortable servicing its existing debt, with repayments progressing as scheduled. - Gross debt stands at INR 620 crores and net debt at INR 581 crores, with expected peak debt not exceeding INR 700 crores. - No accelerated prepayments of debt are planned; repayments will follow normal schedules unless better opportunities arise. - The company is open to raising additional capital (debt or equity) in the future to fund inorganic growth opportunities or new growth channels. - No specific fundraising through debt or equity is planned at present, but capital raising will be considered when growth opportunities necessitate it.

- Two new plants in Pune are being set up: one for cabins and fabrication, and another for die casting; commercial production expected by end of January 2025 (Page 4, 11, 15). - Capex of nearly INR 18 crores planned for Pune cabins/fabrication plant machinery installation (Page 8). - Capex spend till date in current year is about INR 90 crores, mostly for finishing expansion in Pune and carry forward sheet metal projects (Page 7). - Annual capex policy targets INR 150-155 crores (matching depreciation), but this year expected to be around INR 250 crores due to carry forward commitments of around INR 100 crores (Page 7). - Partial capex incurred for Romania plant overseas, with remaining machinery installation planned for next financial year (Page 4). - Capex focused on expansion and new capacities to support future growth and increase output by 20%-30% (Page 13, 15).

- Revenue guidance for current year is INR 4,000 to 4,100 crores, with about 11% EBITDA margin. - Next fiscal year revenue target is INR 4,500 to 4,600 crores, expecting around 11% margin. - Capacity expansions (two plants in Pune for die casting and cabins/fabrication) expected to add 25-30% capacity and trigger volume growth. - Existing plant utilization: Sheet metal capacity at 55-82%, with room to grow; die casting adding 25-27% capacity. - Overseas operations projected to grow 12-13% in second half of the year. - EV business expected to become a significant revenue channel over time, though exact ramp-up uncertain. - Locking systems growth anticipated with new smart locks launch starting Q4 and next fiscal year, especially with Maruti Suzuki. - Margin improvement expected with 50 basis points improvement planned yearly over next two years. - The company aims to outperform industry growth owing to new business and capacity additions.

- The company expects EBITDA margin improvement by 50 basis points this year, targeting around 10.45%, with further improvement to 11%-11.5% in FY '25 and '26. - Revenue guidance for the current year is INR 4,000-4,100 crores, with expected growth to INR 4,500-4,600 crores next year. - Overseas operations, including the Romania plant, aim to return to earlier EBITDA margin levels of 13-13.5% after stabilization. - New expansions, especially in sheet metal, cabins, and fabrication, are expected to drive volume growth. - The ramp-up of smart locks and EV-related components is projected to contribute to future revenue and margin improvement. - Cash flows are strong, with INR 142 crores generated in H1, supporting expansion without excessive debt rise. - Management remains bullish on margin and revenue expansion driven by new investments and operational efficiencies.

- Current orderbook is strong, with new capacities coming online and existing orders in hand. - The company is engaged in discussions with several new customers, including EV start-ups like OLA, Acer, Simple, etc. - There are ongoing developments for new parts, some already in the development phase and others expected to start production in the coming months. - Bulk contracts with customers include price adjustments based on commodity price fluctuations, settled quarterly. - New orders include smart locks for Suzuki and expanded supply for Honda 2-wheelers (locks, mirrors, casting), signaling orderbook additions. - Capacity expansions in Pune (die casting and cabin/fabrication plants) will add approximately 25%-30% capacity. - Existing clients such as TVS, Hero, Honda, Suzuki continue to provide stable revenue with ongoing parts orders. - Order flow is expected to support 20%-25% higher output in the near future.