Subros Ltd

- Order book is not a very specific KPI due to model life span (5-7 years) and continuous production. - Incremental revenue from new model introduction, full/minor model changes, and expansion projects is around Rs. 400 Crores for the current financial year. - This Rs. 400 Crores order book includes railway, new bus orders, hybrid, EV OEM businesses, and expansion projects. - Execution of order book spread across FY 2025 and FY 2026, with maximum Start of Production (SOP) likely in FY 2026. - Railway orders are tender-based and periodic; recent orders include Rs. 28 Cr and Rs. 4 Cr with 3-4 tenders in pipeline. - Engagement ongoing for truck AC N2/N3 categories with mandatory AC from June 2025; specification finalization and negotiations underway. - Expect gradual realization of orders aligned with industry production and new launches.

The transcript does not mention any current or planned fundraising through debt or equity for Subros Limited. Key points include: - No explicit discussion or announcement regarding new debt or equity fundraising. - Capex plans indicate consistent investment between Rs. 100 Crores to Rs. 140 Crores annually for maintenance, new product development, and automation. - Any strategic or large investment, especially for EV localization or Greenfield projects, will be decided separately and communicated when finalized. - Management mentioned ongoing engagement for compressor localization for EV but no detail on funding specifics. - Overall focus is on sustainable growth and cautious monitoring of market conditions without indication of immediate fund raising. Hence, as of the latest update, there is no clear indication of upcoming fundraising through debt or equity.

- Subros maintains a consistent investment strategy with typical annual capex between Rs. 100 Crores to Rs. 140 Crores. - This includes maintenance, new product development, automation, and project-related costs. - Any strategic or large-scale investments, such as greenfield projects or major localization efforts for EV compressors, will be considered separately. - The company is currently evaluating localization of EV compressors, which involves significant investment and specification finalization expected over the next 2-3 quarters. - Strategic investments for electric vehicle (EV) related expansions will be made as and when decided, either as a one-time or phased investment; updates will be provided accordingly. - No large investments are currently required for railway AC business as it mostly involves assembly with a few outsourced parts.

- Subros expects growth in line or slightly better than the industry, projecting 5% to 6% growth next year versus industry 3% to 4%, driven by new EV models and SUV segment sales. - Growth in passenger vehicle AC segment faces mixed feedback; subdued growth in H1 FY 2025 due to geopolitical factors and election year, with improvement expected in H2. - Expansion in non-car segments like buses, trains, and trucks (N2/N3 category with AC mandate from June 2025) expected to contribute significantly to future revenue. - EV and hybrid product portfolio developing; new radiator, hose, and pipe products launched; compressor localization underway, expected to unlock incremental revenue. - Order backlog incremental revenue potential of Rs. 400 Cr over next 2-3 years including railways, buses, and EV projects. - Home AC business growth considered limited near term with muted expansion efforts. - Margins expected to improve gradually with cost-downs; EBITDA targets aim to exceed 10% within next 6-8 quarters.

- Subros expects sustainable growth going forward, with gradual improvement in topline and profitability. - Growth in FY 2025 is expected to be challenging due to geopolitical and election-year uncertainties; a stronger second half (H2) is anticipated. - The company aims for 5%-6% growth, slightly outperforming the industry (3%-4%) due to new EV model launches. - EBITDA margin improvement is targeted steadily; crossing 10% EBITDA within the next 6-8 quarters is a key milestone. - Gross margin improvement will be gradual, not an immediate jump to 29%-30%. - Profitability has shown strong YoY improvement recently (Q3 PAT up 227%); consistent PBT above 4.5% in recent quarters. - EBITDA growth driven by cost-down projects, escalation claims settlement, and improved mix. - Earnings growth will be supported by increased content in EV/hybrid vehicles and expanding bus and railway segments.