Any current/future new fundraising through debt or equity?

There is no explicit mention of any current or future fundraising through debt or equity in the transcript. The company has disclosed a total debt level of ₹624 crores as of March 2024 and a surplus cash balance of ₹513 crores invested in mutual funds and bonds. The focus seems to be on operational improvements, CAPEX of about ₹180 crores covering all divisions and geographies, and strategic investments rather than raising new funds. No statements by management during the call indicated plans for raising capital via debt or equity.

Any current/future capex/capital investment/strategic investment?

Total CAPEX planned for FY25 is about ₹180 crore across all divisions and global locations. Approximately 50% (~₹90 crore) allocated for maintenance CAPEX such as modernization, EHS, capacity buildup, quality, productivity, and automation. Remaining 50% (~₹90 crore) earmarked for strategic investments including: - Setting up a greenfield technology center (STC) in Bangalore; current team size 100+, expected to grow to 200. - Purchase of additional land and industrial buildings in Bangalore. - Expansion by adding a new floor at the Chakan plant. These strategic investments aim to support

Future growth expectations in sales/revenue/volumes?

Suprajit expects double-digit growth in its Domestic Cable Division (DCD) driven by strong order books and increased wins. Electronics Division (SED) anticipates robust growth with new product launches, integration of mechanical speedometers, and expansion CAPEX planned. Aftermarket sales in Phoenix Lamps are expected to grow this year despite challenges from the grey market. Non-automotive overseas business margins are suppressed currently but expected to recover with market rebound in 1-2 years. Suprajit aims to return North American and Matamoros plants to FY23 revenue levels within

Future growth expectations in earnings/operating earnings/profits/EPS?

Suprajit expects a decent and satisfactory year ahead barring any adverse global scenario changes. Domestic Cable Division is comfortably expected to achieve double-digit growth. Electronics Division (SED) aims for continued robust growth with double-digit margins anticipated; inclusion of mechanical speedometers may slightly moderate margins but growth remains strong. Phoenix Lamps Division projects good growth with margins comfortably in double digits despite LED penetration concerns. Suprajit Controls Division had a challenging year but showed improvement; worst appears behind, with operati

Current/ Expected Orderbook/ Pending Orders?

Suprajit Engineering Limited does not usually disclose detailed order books for divisions. The company has previously made a one-time disclosure of order book, which remains strong. There have been additional contract wins on top of the existing order book in the current year. The outlook for order book remains optimistic with expectations of significant revenue contribution in upcoming years. Strong order book visibility particularly in the Suprajit Electronics Division driven by new product wins. The domestic cable division and related business divisions have a robust order pipeline. Overall

Suprajit Engineering LtdQ1 FY25

Suprajit Engineering Ltd Q1 FY25 Earnings Call Analysis

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

Price: ₹524P/E: 38.4Market Cap: ₹7.2K Cr

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Suprajit expects double-digit growth in its Domestic Cable Division (DCD) driven by strong order books and increased wins.
→Electronics Division (SED) anticipates robust growth with new product launches, integration of mechanical speedometers, and expansion CAPEX planned.
→Aftermarket sales in Phoenix Lamps are expected to grow this year despite challenges from the grey market.
→Non-automotive overseas business margins are suppressed currently but expected to recover with market rebound in 1-2 years.
→Suprajit aims to return North American and Matamoros plants to FY23 revenue levels within 2 years by introducing additional products.
→Continued focus on premiumization and global actuation platforms will support Electronics and Actuator businesses' growth.
→Inorganic growth opportunities are under evaluation to enhance geographic reach, capacity, and market share.
→Overall, management remains confident of sales/volume growth driven by new contracts, product innovation, and market expansion.

Margin guidance

Category 3

→Suprajit expects a decent and satisfactory year ahead barring any adverse global scenario changes.
→Domestic Cable Division is comfortably expected to achieve double-digit growth.
→Electronics Division (SED) aims for continued robust growth with double-digit margins anticipated; inclusion of mechanical speedometers may slightly moderate margins but growth remains strong.
→Phoenix Lamps Division projects good growth with margins comfortably in double digits despite LED penetration concerns.
→Suprajit Controls Division had a challenging year but showed improvement; worst appears behind, with operational performance expected to further improve.
→Overall EBITDA margin improvements are expected, particularly in divisions like Electronics and Phoenix Lamps through operational efficiencies and restructuring.
→CAPEX of about Rs. 180 crores planned, with ~45-50% for new products/projects to drive future growth.
→Long-term aspiration is sustained margin improvement and growth through product premiumization and global market expansion.

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Fundraise plans

→There is no explicit mention of any current or future fundraising through debt or equity in the transcript.
→The company has disclosed a total debt level of ₹624 crores as of March 2024 and a surplus cash balance of ₹513 crores invested in mutual funds and bonds.
→The focus seems to be on operational improvements, CAPEX of about ₹180 crores covering all divisions and geographies, and strategic investments rather than raising new funds.
→No statements by management during the call indicated plans for raising capital via debt or equity.

Order book

Yes

→Suprajit Engineering Limited does not usually disclose detailed order books for divisions.
→The company has previously made a one-time disclosure of order book, which remains strong.
→There have been additional contract wins on top of the existing order book in the current year.
→The outlook for order book remains optimistic with expectations of significant revenue contribution in upcoming years.
→Strong order book visibility particularly in the Suprajit Electronics Division driven by new product wins.
→The domestic cable division and related business divisions have a robust order pipeline.
→Overall, the company expects continued strong order traction and order book growth supported by multiple contract wins and new product developments.

Capex plans

Yes

→Total CAPEX planned for FY25 is about ₹180 crore across all divisions and global locations.
→Approximately 50% (~₹90 crore) allocated for maintenance CAPEX such as modernization, EHS, capacity buildup, quality, productivity, and automation.
→Remaining 50% (~₹90 crore) earmarked for strategic investments including:
→ - Setting up a greenfield technology center (STC) in Bangalore; current team size 100+, expected to grow to 200.
→ - Purchase of additional land and industrial buildings in Bangalore.
→ - Expansion by adding a new floor at the Chakan plant.
→These strategic investments aim to support new product development, infrastructure buildup, and future business growth.

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