ThaaiQ2 FY25
Thaai Q2 FY25 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹113.05P/E: 21.6Market Cap: ₹275 CrSector: Auto Components
Management growth scorecard
Revenue
Category 3
Margin
Category 3
Fundraise
Yes
Order
Yes
Capex
Yes
3 of 5 growth signals are positive.
Full analysisRevenue guidance
Category 3- Targeting revenue of INR220-225 crores for FY25-26, with conservative estimates around INR190-200 crores due to some delays.
- Order book of around INR350 crores with INR190-200 crores expected to be executed in the next 12 months.
- Revenue from wind energy business to start from FY26-27, with capex of INR70-75 crores already underway.
- Gas nitriding service business started revenue recently, contributing around INR9 crores monthly.
- Focus on increasing automotive segment revenue from 60% aiming for further growth, while balancing with higher-margin non-automotive segments.
- Planned scaling in part sizes in auto segment, from current 6 kg parts targeting up to 9 kg parts.
- Investments planned to support growth over next 5 years, including capex for machinery and robotics for automation.
- Expansion to exports expected from next year onwards to grow international footprint.
See what Thaai management said on margin guidance — free account, 30 seconds.
Fundraise plans
Yes- Thaai Casting Limited is planning to enhance working capital with a modest increase in debt.
- Recently requested an additional INR 5 crores from bankers for working capital.
- Total debt currently is around INR 62 crores; expected to increase by INR 8-10 crores due to new machinery and capex.
- Post increase, total debt expected to be around INR 77-80 crores by end of FY25.
- The additional debt is primarily to fund capex for new projects and machinery to support business growth over the next 5 years.
- No mention of any new equity fundraising plans in the current discussion.
- Capacity and equipment investments are ongoing, with financing managed through incremental debt and banking facilities.
See what Thaai management said on order book — free account, 30 seconds.
Capex plans
Yes- Capex is ongoing and essential for growth, mainly for upgrading or acquiring new machines to support tougher operations, higher precision, and new business models.
- Recent investments include machinery like INR1.4 crore secondary operation machines imported from Turkey, expected to start revenue contribution by June-July next year.
- INR70-75 crore capex planned for wind energy business, with machinery delivery timelines of 15-16 months, installations targeted by September 2025.
- Gas nitriding vertical has three furnaces; all operational with increasing production and utilization.
- Robotics implementation is in progress, targeting 30-40% increased automation next year to enhance productivity and reduce manpower.
- Working capital enhancements planned with additional INR5 crore requested from banks.
- Overall machinery investments expected to add around INR8-10 crore, supporting business for at least 5 years.
- New investments are "captive" to specific projects, contributing to incremental revenue and margins.
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Margin guidance
Category 3- Revenue target for FY 2025-26 is INR 220-225 crores, with a conservative estimate currently at INR 190-200 crores due to delays.
- EBITDA margin guidance for FY 2025-26 is maintained around 25-27%, with potential to catch up to near 27%.
- Net profit margins expected to stay stable around 9.89%-11%.
- Operating margins have decreased from ~29%-30% to ~25% due to a higher share of automotive parts with lower margins.
- Future growth driven by expansion in automotive passenger vehicle segment (95% focus), wind energy components from FY 2026-27 onwards, and new verticals like gas nitriding services.
- EPS is expected to grow with increasing revenues; current H1 FY25 EPS is 2.15.
- Continuous investments in automation, robotics, and capital expenditure (~INR 70-75 crores for wind energy) to support growth and productivity.
- Working capital and debt expected to increase moderately with expansion but geared towards stable long-term growth.
Order book
Yes- The total order book is around INR 350 crores.
- Orders for the next 12 months are significant but the exact breakup is not specified.
- INR 154 crores order book is domestic, possibly for passenger and commercial vehicles.
- An existing INR 220 crores order secured in February is part of the ongoing enhancements, expecting INR 90+ crores from it this year.
- Order execution timeline spans the next 60 to 80 months, covering 3 to 5 years after production start.
- Additional orders under negotiation, some LOIs signed, awaiting purchase orders, mostly smaller than INR 150 crores.
- Strong pipeline from existing customers for model launches of 2026 and 2027.
- The company expects to complete about INR 125 crores revenue this year and target INR 190 crores next year from the order book.
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