Talbros Automotive Components Ltd

- The company is currently working on new projects and technology transfers but not actively pursuing new joint ventures or acquisitions. - No explicit mention of plans for fresh fundraising through debt or equity during the call. - Proceeds from the disinvestment of 40% ownership in Nippon Leakless Talbros have been invested in government securities and are expected to be used for internal capital expenditures. - The company plans capex mainly for expansion in forging, chassis, Marelli JV, and gasket divisions, funded from internal accruals and proceeds from past disinvestment. - Management indicated working on potential future acquisitions or JVs but nothing concrete or immediate. In summary, no current or imminent fundraising through new debt or equity, with growth capex planned from internal funds and disinvestment proceeds.

- Capex plans across divisions for FY25: - Gasket and heat shield division: INR 20 crores, with new premises in Chakan (supply starting July-August). - Forgings division: INR 30 crores for machinery and hammer capacity enhancement (commercial production started recently). - Marelli division: INR 60-62 crores for Pune plant expansion (shed ready by Sep-Oct; machine orders underway). - Marugo division: INR 6 crores for capacity enhancement. - Capex to be operational mainly from Q2 onwards, with full ramp-up expected by Q3 FY25. - Disinvestment proceeds (from 40% stake sale in Nippon Leakless Talbros) to be reinvested in future capex and high-growth businesses like forging, chassis, and gaskets. - New product developments and technology transfer projects underway, but no major acquisitions planned currently. - Minor capex for EV-related rubber gasket machines and new motor lines expected, but not significant.

- Talbros targets a 13% CAGR in revenue by FY '27, aiming for sustained growth across divisions. - Gasket division grew 20% in FY '24; forging and JV divisions show strong order books with expected growth of 25%-30% p.a. - EV revenue share expected to rise to approximately 12% by FY '27, up from 3% in FY '24. - Large export orders underway, including INR 1000 crore from Stellantis over seven years, with plans to increase exports from 25% to 35% within 3 years. - Expansion focused on passenger vehicles in EV space; electric commercial vehicles currently limited. - New product developments ongoing in heat shields, hoses, sealing for batteries, and rubber gaskets for EV motors. - Capex planned of around INR 60-62 crores for Marelli JV and INR 6 crores for Marugo JV to enhance capacity; ramp-up expected by Q3 FY'25. - Order book across divisions supports revenue growth, reaching INR 700 crores in Marelli and forging divisions by FY '27.

- The company projects stable operating margins around 15-16% through FY '27, with a cautious aim to inch upwards gradually, but not expecting sudden large improvements beyond this range. - FY '24 EBITDA margin stood at 16.1%, with a goal to maintain or slightly improve these margins over the next few years. - Revenue growth guidance is pegged at around 13% annually going forward, driven by expanding exports and new product lines, including EV components. - Earnings growth is expected through increased exports, product portfolio expansion (hoses, battery sealing, heat shields), and strong order books, especially in forgings and Marelli JV. - Marugo JV margins expected to improve to 9-10% in the next financial year from current lower levels. - Profit Before Tax (PBT) and PAT showed healthy growth last year (PAT growth 49% Y-o-Y). - EPS growth is anticipated from operational scaling, expansion, and increased high-margin export business.

- Talbros has received orders worth INR 400 crores in July 2023, to be executed over 5-7 years, including EV orders of INR 205 crores. - In November 2023, additional multiyear orders of about INR 580 crores were received, including INR 270 crores in EV orders, to be executed over 5 years. - April 2024 saw a large new order from a European OEM through Marelli Talbros Chassis JV worth about INR 1,000 crores, starting Q4 FY'25. - Total orders received in the last year total around INR 2,000 crores, with INR 475 crores from EV and INR 415 crores export orders. - Marelli order contributes to a deemed export business worth about INR 1,000 crores. - Order book includes strong contracts with OEMs Cummins, JCB, Dana, Meritor, and expansion with Mahindra. - Expected volume from new EV business estimated at INR 10-12 crores in FY'25, with potential expansion to INR 25-30 crores.