Schaeffler India Ltd

- There is no explicit mention of any current or future fundraising through debt or equity in the document. - The company emphasizes judicious and flexible investment approaches, focusing on realizing benefits from existing capex rather than immediate new large-scale fundraising. - Any additional investments will be driven by new business wins warranting such investments. - The company acknowledges that capex may fluctuate depending on business needs but does not indicate plans for raising funds specifically through debt or equity. - The focus remains on efficiently leveraging current investments and maintaining agility in capital allocation rather than on raising new funds.

- The company announced a capex of INR 1,000 crores initially in 2022, revised to INR 1,500 crores, and has already slightly exceeded this amount by 2024. - Most growth- and localization-related capex will be realized by the end of 2024; capex spending will slow down in 2025 to focus on realizing the benefits of prior investments. - Additional investments beyond INR 1,500 crores were necessary due to new business wins such as Tata and e-motor axle projects. - Capex remains flexible and agile, adjusted according to business needs and market conditions. - The greenfield Hosur plant investment is approximately INR 300 crores, and production is set to start early 2025, initially for transmission components including clutches, with plans to scale to EV-related products. - Future investments will be judicious, balancing new opportunities with maximizing utilization of existing capacities.

- Schaeffler India expects continued double-digit growth in various sectors including automotive technologies, bearings & industrial solutions, and vehicle lifetime solutions, despite some recent challenges in passenger vehicle demand. - Industrial sectors like wind energy, railways, raw material sectors, and two-wheelers are showing strong traction and contributing to growth. - New business wins, such as the e-motor axle project with Tata and other EV-related contracts, support future growth opportunities. - Exports to Southeast Asia are being evaluated with potential in two-wheelers, though growth size may differ from Europe. - Capex of INR 1,500 crores over 3 years aims to support capacity expansion, localization, and efficiency improvements, with investment remaining agile based on business needs. - Revenue growth for Q3 FY24 was 12.1% YoY, with automotive technologies growing at 10.7% YoY and bearings & industrial solutions at 13%, indicating strong underlying volume/revenue momentum. - Cautious outlook on passenger vehicle production due to high inventory but slow growth expected in tractors aided by a good monsoon.

- The company expects new business wins, such as Tata and e-motor axles projects, to drive additional investments and growth beyond initial capex estimates (Page 17). - Start-up ventures like KRSV Innovative Auto Solutions are projected to break even by end of 2026 and generate positive cash flow from 2027 onwards (Page 17). - Sustained double-digit growth is anticipated across key sectors including railways, two-wheelers, raw materials, and wind energy, with distributorship also targeted for strong growth (Pages 14-15). - EBITDA margins saw slight pressure due to inflationary employee costs and absence of one-time incomes, but the company maintains focus on margin improvement (Page 13). - Continued judicious capex spending aimed at capacity expansion and localization, with a slowdown in capex planned for next year to realize benefits from prior investments (Page 17). - Overall, Schaeffler expects to maintain growth momentum and profitability, leveraging diversified portfolio and operational agility despite challenging market conditions (Pages 6-8, 17).

- Harsha Kadam mentioned they do not have visibility of the end customer orders or inventory levels beyond their shipments based on received order books. - The company ships materials to sister plants, which manage downstream sales and customer orders. - Due to this, Schaeffler India Limited does not have direct insights into pending orders or the complete order book status beyond what they produce and dispatch. - For European exports, the market is currently sluggish with weak demand and some destocking, but no clear timeline for improvement was shared. - Investments and capex plans are aligned with new business wins, such as the Tata e-motor axles, which were unforeseen when initial investment estimates were made. The order pipeline seems active but details are not fully disclosed.