Setco Automotive

- An enabling resolution for borrowing up to ₹150 Crores has been passed to allow future fundraising through debt or Qualified Institutional Placement (QIP) without repeatedly seeking market approval. - No immediate fresh loan has been taken; current pledging percentage remains at 77% mainly due to falling share prices, not additional borrowing. - Measures are being discussed at the promoter level to reduce share pledging in the future. - Capex plans have been deferred by 6-9 months to save liquidity; this deferral is not related to debt repayment ability, which is being serviced regularly. - Long-term debt has been reduced by around ₹50-55 Crores over the last three years and is currently at low levels. - No specific immediate equity fundraising planned, but the company remains open to raising funds if required.

- Capex plans have been deferred by 6 to 9 months to realign capacity with the demand situation. - Current capacity is expected to suffice for the next 18 months. - Some innovative solutions include outsourcing to reduce fixed cost investment and share risk with suppliers. - Planned capex expected to resume, if required, in H1 of FY2021-22 instead of H2 of next year. - Capex is aimed at generating future capacity and is not related to debt repayment, which is being serviced regularly. - Joint venture with Korean company SECO aims to supply clutches for car segments including Korean companies like Kia and Hyundai, expanding market reach. - Focus on developing new products for BS VI norms to capture future growth and margin improvement.

- The company expects to hit the consolidated revenue milestone of ₹1000 Crores by FY2021, a slight delay from the original guidance of FY2020. (Page 14) - Despite a 20-25% degrowth in the OEM segment in Q1 and Q2 FY2020 due to market downturn, overall growth is projected at 12-15% for the full year, supported mainly by aftermarket and exports showing strong traction. (Pages 8-9) - Aftermarket sales, constituting about 55% of business, have grown double digits and are expected to grow further, improving margins significantly. Exports, especially to the US, have doubled volumes recently and expected to triple in H2 FY2020. (Pages 8, 12) - BS VI related product upgrades are expected to increase engineering content and margins starting April 2020. (Page 9) - Farm equipment segment supplies expected to start by Q3 FY2020, with plans to add customers and grow volumes in H2. (Page 12) - Overall, the company is confident of recovery and growth in H2 FY2020 and beyond, with continued margin improvement. (Pages 3, 14)

- Setco Automotive expects OEM segment degrowth of around 20% in H1 FY2020 but anticipates recovery in H2, with volumes picking up between 15%-30% based on customer guidance. - Aftermarket and exports showed strong double-digit growth in Q1, with aftermarket growth expected to rise above 20% in remaining quarters, supporting margins. - EBITDA margins are stable around 15% baseline, with expected improvements as activity levels rise and a richer sales mix (higher aftermarket contribution) supports margin growth. - Enhanced engineering content in BS VI products is likely to boost realization and margins, especially in OE segment starting April 2020. - Revenue target of ₹1000 Crores consolidated is expected to be met by FY2021 instead of FY2020 due to current market conditions. - Share price is below book value but earnings remain solid; management confident of growth and profitability despite market headwinds.

- The transcript provided from the Setco Automotive Limited Q1 FY2020 earnings call does not explicitly mention the current or expected order book or pending orders in specific figures. - However, management indicates positive momentum in exports and aftermarket sales, showing strong demand and validated customer approvals, especially for farm equipment and US aftermarket. - The company expects to ramp up US exports from around 200 units/month to 350 units/month in H2 with tie-ups in place, indicating growing order flow. - Validation and supplies for farm equipment have begun, with plans to add more customers in H2, signifying new order inflows. - Q1 OEM degrowth is around 20%, with expected recovery in H2 as vehicle production aligns with improving market conditions, potentially increasing orders. - Overall, management remains confident of growth and order inflows driven by aftermarket, exports, and new product launches.