Sansera Enginee.Q1 FY25

Sansera Enginee. Q1 FY25 Earnings Call Analysis

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

Price: ₹4,277P/E: 83.5Market Cap: ₹29.1K 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.

See what Sansera Enginee. management said on margin guidance — free account, 30 seconds.

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.

See what Sansera Enginee. management said on order book — free account, 30 seconds.

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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