TVS Electronics Ltd

- In the short term, TVS Electronics plans to manage funding requirements through internal accruals. - For the long term, the company may consider fundraising options if needed. - Fundraising could include raising fresh debt or equity, but no immediate plans were specified. - The company also mentioned no current plans for large CAPEX this year, relying on existing resources. - Any future decision on fundraising will depend on business growth and requirements.

- FY’25 CAPEX: No additional CAPEX planned currently; future CAPEX decisions will be based on business requirements (Page 12). - Last year spent ₹15 crores on setting up the first SMT (Surface Mount Technology) line including factory infrastructure such as nitrogen gas pipes and compressors for EMS (Page 11). - Over last 2 years, approx ₹40 crores invested in growth-related CAPEX including new offices and digitization (Page 9). - Future CAPEX expected to be regular business CAPEX focused on growth and expansion, not large-scale (Page 9). - Any large future CAPEX or fundraising will consider internal accruals first; long-term fundraising (debt or equity) may be considered if required (Page 9). - EMS capacity expansion is possible within current factory premises, no immediate need for new facilities (Page 11).

- Revenue growth is expected driven by new business initiatives like EMS and R&D investments. - Q2 FY25 revenue was ₹105 crores, a 13.4% YoY increase; H1 FY25 revenue was ₹216 crores, up 18.6% YoY. - Products and Solutions grew 8.3% YoY in Q2, 19.1% in H1; Customer Support Services grew 27.5% YoY in Q2, 17.4% in H1. - EMS business is in early stages with investments made (₹15 crores CAPEX), revenues expected to start flowing after client onboarding in coming quarters. - R&D investments and EMS hiring are about 75-80% complete; future hiring aligns with business growth. - Investments in growth initiatives are 2-3% of revenue focusing on long-term expansion. - Market segments like auto electronics, IT peripherals and solar O&M are targeted for growth. - Management emphasizes long-term growth and expects improved results as initiatives mature.

- Company is investing significantly in growth areas like EMS (Electronic Manufacturing Services) and R&D, which currently impact margins but are expected to yield better results long-term. - EBIT margins slightly declined due to increased personnel costs linked to EMS and R&D initiatives. - Long-term ROE target is around 15%, consistent with past performance. - Focus on customer support services (CSS) growth, especially in IT, banking, and solar sectors, aiming for profitability improvements. - New EMS line operational with ~75-80% hiring completed; further additions will align with business growth, expecting revenue flow once clients onboard. - Capital investments totaling ~15 crores in EMS line, with no additional CAPEX planned for FY'25 unless required by business growth. - Management commits to quarterly updates on progress and business developments. - Overall revenue grew 13.4% YoY in Q2 FY25; EBITDA and net loss reflect ongoing investments for future scale-up.

- The management did not disclose specific details on current or expected order book during the call. - Discussions on client onboarding in the EMS business are ongoing but no concrete client names or order details were shared. - The company is actively pursuing EMS clients and expanding capabilities but is cautious about sharing sensitive customer or order information. - Any material client wins or certifications will be disclosed to stock exchanges and through press releases as per SEBI norms. - Efforts are on for order inflow, with CapEx already done to support EMS growth. - No exact timeline or order backlog figures were provided; the company emphasized engagement and planned updates in future calls.