Servotech Renewable Power System Ltd

- The company’s planned investment of around ₹300 crore will be executed in three phases. - The first phase of investment is already done. - Funding so far includes some debt from banks and internal accruals. - There is no major equity dilution planned currently. - However, a small equity dilution might happen from September onwards. - The company aims to keep the debt-to-equity ratio below 50-60% of total equity. - Overall, financing will primarily be through internal accruals and debt. - No large-scale equity fundraising is planned at this stage.

- Servotech is planning a major capex of around Rs. 300 crore over three phases. - The first phase has already been invested, including some debt taken from banks. - There might be small equity dilution from September onward but no major dilution planned currently. - The new factories are planned for FY 2025-2026 and targeted to be operational before October. - Current production capacity can handle approximately 2.5 times last year’s turnover. - The company is focusing on backward integration, manufacturing components in-house to strengthen technology grip. - Investment in technology and capacity expansion aligns with ambitions to rank among the top 2-3 companies in EV chargers. - Internal accrual and debt will be the major financing sources for expansion; debt-equity ratio aimed not to exceed 50-60%.

- The company aims to double revenue, targeting 500-600 crores in the near term, with about 65% from EV chargers and the rest from solar products. (Page 15) - Expecting 90-110% growth in revenue this year, reflecting aggressive expansion ambitions. (Page 15) - The EV charger market in India is projected to be over Rs. 1.5 lakh crores in the next 6-7 years. (Page 12) - The company has bid for tenders worth over 2,000 crores, expecting to capture 15-20% share, translating to potential revenues of 500-600 crores. (Page 14) - Production capacity to increase 2.5 times current turnover with new factories planned to be operational by FY 2025-2026. (Page 23) - Investment of more than Rs. 300 crores planned for expansion in EV chargers and technology capacity. (Page 17 & 21) - Internal accruals and debt will primarily finance growth, with modest equity dilution possible from September onwards. (Page 21)

- EBITDA saw a significant improvement, increasing by 415.3% from ₹1.4 crores in Q1 FY23 to ₹7.1 crores in Q1 FY24; margin improved from 4.3% to 8.9%. - PAT improved sharply from ₹36 lakhs in Q1 FY23 to ₹4.1 crores in Q1 FY24; margin rose from 1.1% to 5.1%. - The company expects continued margin expansion driven by higher value-added products and increasing scale of operations. - Revenue grew substantially by 148.9% from ₹32.07 crores in Q1 FY23 to ₹79.81 crores in Q1 FY24, fueled by strong demand for EV and LED products. - Management targets doubling turnover with strong order book and contracts valued around ₹2000 crores, with about ₹500-600 crores potentially realizable. - Planned capex for FY25-26 aims to increase capacity 2.5 times, supporting future growth in EV chargers and other verticals. - The company intends to maintain debt-to-equity ratio below 50-60% and may consider minor equity dilution if needed. - Strategic focus remains on niche, high-margin products rather than commodity LED segments.

- Current fixed order book through channel sales and digital e-commerce is around Rs. 60-70 crores (Page 6). - For the next quarter, contracts worth about Rs. 90 crores are expected to be received (Page 6). - The company has bid for contracts worth Rs. 2000 crores in total (Page 7). - Taking a conservative estimate of 20% conversion, expected order inflow could be around Rs. 500-600 crores (Page 7). - Completed orders worth Rs. 80 crores have been mentioned recently (Page 14). - Orders include supply, installation, commissioning, and maintenance of EV chargers (Page 7). - The company maintains that until a confirmed order is received, it cannot be considered as an order (Page 19).