Any current/future new fundraising through debt or equity?

The transcript does not mention any current or future fundraising plans through debt or equity by Sansera Engineering Limited. No declarations about raising capital, issuing new shares, or taking on additional debt were discussed during the call. The company is focused on funding its CAPEX plans (around Rs. 4,500 million for FY '25) through internal accruals and existing resources. They are pursuing brownfield and greenfield expansions and looking at long-term capacity building without stating any need for external funding. The management did not provide any details or indications regarding pl

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

Sansera is setting up a special process facility for aerospace adjacent to the existing machining facility with an investment of about Rs. 30 crores; expected operational by mid-FY '26 and fully utilized by FY '27. This will enable in-house special processes like anodizing, sharpening, plating, crucial for aerospace growth. The company plans a total CAPEX of approximately Rs. 450 crores (~Rs. 4,500 million) in FY '25 towards brownfield expansion of existing facilities to support growth and increased capacity. A new 4,000-ton press is being commissioned by end of H1 FY '25, aiding expansion in

Future growth expectations in sales/revenue/volumes?

Off-road segment: Moderate growth expected around 14-15% for the full year FY '25 due to consolidation after significant scale-up last year. New programs in discussion may impact growth in coming years. EV segment: Despite losing a major 2-wheeler customer, 30% growth in 1QFY25; expected to continue growing with Rs. 100 crore revenue guidance from this customer and new clients. Industry headwinds persist but company focuses on tech-agnostic xEV components. Aerospace segment: Targeting 30-35% growth in FY '25, cautious due to some schedule pushouts by customers, but long-term CAGR of 40-50%

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

The company anticipates moderate growth in the off-road segment (~14-15%) for FY25, consolidating last year’s high growth (~66-67%). EV segment growth has slowed from 52% (FY24) to ~30% currently; management expects continued focus on xEV and tech-agnostic components but with potential slowdowns due to industry headwinds. Aerospace revenue is expected to grow 30-35% in FY25, slightly lower than initial expectations (40-50%) due to customer schedule pushouts. Overall growth guidance suggests a CAGR of 40-50% over 2-3 years in non-automotive, tech-agnostic, and xEV segments. EBITDA margins are t

Current/ Expected Orderbook/ Pending Orders?

The order book stood at Rs. 16.9 billion as of June 2024. 63% of orders are from international business; 37% are domestic. Order book additions remain strong with higher-value orders despite fewer LOIs. New business wins, especially in Swedish subsidiary and aerospace & defense, contribute to order book growth. Future order inflows look robust, including new programs starting in the second half of the year. Some softness in European passenger vehicle demand (Auto ICE segment) balanced by new order inflows. EV segment order book share declined slightly from 19% to 17%, reflecting industry-wide

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Sansera Engineering LtdQ2 FY24Auto Components

Sansera Engineering Ltd Q2 FY24 Earnings Call Analysis

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

Price: ₹3,146P/E: 54.3Market Cap: ₹14.9K CrSector: Auto Components

Management growth scorecard

Revenue

Category 3

Margin

Category 1

Fundraise

N/A

Order

Yes

Capex

Yes

3 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Off-road segment: Moderate growth expected around 14-15% for the full year FY '25 due to consolidation after significant scale-up last year. New programs in discussion may impact growth in coming years.
→EV segment: Despite losing a major 2-wheeler customer, 30% growth in 1QFY25; expected to continue growing with Rs. 100 crore revenue guidance from this customer and new clients. Industry headwinds persist but company focuses on tech-agnostic xEV components.
→Aerospace segment: Targeting 30-35% growth in FY '25, cautious due to some schedule pushouts by customers, but long-term CAGR of 40-50% anticipated over next 2-3 years.
→International business (excluding Swedish subsidiary): Exports from India grew ~27-28% in 1QFY25, with high confidence in sustained strong growth backed by new customers and products.
→Overall: Aim for 8-10% higher growth than industry average. Non-automotive, tech-agnostic, and xEV businesses expected to grow at 40-50% CAGR over next 2-3 years.

Margin guidance

Category 1

→The company anticipates moderate growth in the off-road segment (~14-15%) for FY25, consolidating last year’s high growth (~66-67%).
→EV segment growth has slowed from 52% (FY24) to ~30% currently; management expects continued focus on xEV and tech-agnostic components but with potential slowdowns due to industry headwinds.
→Aerospace revenue is expected to grow 30-35% in FY25, slightly lower than initial expectations (40-50%) due to customer schedule pushouts.
→Overall growth guidance suggests a CAGR of 40-50% over 2-3 years in non-automotive, tech-agnostic, and xEV segments.
→EBITDA margins are targeted to improve toward double digits by late FY25 or early FY26, driven by automation and new high-margin business.
→The company aims to grow revenues by 8-10% above industry growth, with stable order books and capacity expansions underway.
→CAPEX of approximately Rs. 450 crore planned in FY25 to support growth initiatives and capacity expansion.

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Fundraise plans

→The transcript does not mention any current or future fundraising plans through debt or equity by Sansera Engineering Limited.
→No declarations about raising capital, issuing new shares, or taking on additional debt were discussed during the call.
→The company is focused on funding its CAPEX plans (around Rs. 4,500 million for FY '25) through internal accruals and existing resources.
→They are pursuing brownfield and greenfield expansions and looking at long-term capacity building without stating any need for external funding.
→The management did not provide any details or indications regarding plans for equity or debt fundraising in the near term.

Order book

Yes

→The order book stood at Rs. 16.9 billion as of June 2024.
→63% of orders are from international business; 37% are domestic.
→Order book additions remain strong with higher-value orders despite fewer LOIs.
→New business wins, especially in Swedish subsidiary and aerospace & defense, contribute to order book growth.
→Future order inflows look robust, including new programs starting in the second half of the year.
→Some softness in European passenger vehicle demand (Auto ICE segment) balanced by new order inflows.
→EV segment order book share declined slightly from 19% to 17%, reflecting industry-wide adoption slowdowns.
→The company anticipates continued strong order book growth due to diversification across segments and geographies.

Capex plans

Yes

→Sansera is setting up a special process facility for aerospace adjacent to the existing machining facility with an investment of about Rs. 30 crores; expected operational by mid-FY '26 and fully utilized by FY '27. This will enable in-house special processes like anodizing, sharpening, plating, crucial for aerospace growth.
→The company plans a total CAPEX of approximately Rs. 450 crores (~Rs. 4,500 million) in FY '25 towards brownfield expansion of existing facilities to support growth and increased capacity.
→A new 4,000-ton press is being commissioned by end of H1 FY '25, aiding expansion in higher capacity engines and aluminum components, including chassis and suspension parts.
→Sansera has signed an MOU with Karnataka government to acquire 55 acres of land for future greenfield expansion in its core expertise area, pending Board approval.
→Continuous focus on automation to improve margins and profitability, with automation benefits expected by next year.

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