Uniparts India Ltd

- The company has secured an enabling resolution for borrowing of approximately INR1,500 crores. - This borrowing capacity is intended to support potential acquisitions or strategic investments. - No specific large acquisitions or fundraisings have been finalized yet; the management is actively evaluating and engaging in inorganic growth options. - The management indicated that acquisitions will be of manageable size and strategically positive; no very large acquisitions are planned imminently. - There was no explicit mention of any immediate equity fundraising during the call. - The company maintains a net debt-free balance sheet with a net cash position of around INR208 crores as of December 31, 2024. - Cash flows are robust, supporting organic growth and keeping dividend payouts healthy.

- Current capex commitment during the quarter was approximately INR11 crores. - Uniparts is actively investing in near-shoring operations, notably in Mexico, starting with stocking and warehousing facilities, with potential future manufacturing depending on market conditions. - The company is focusing on operational efficiencies and strategic investments in expanding product platforms, including fabrication, hydraulic, PTO, and 3-Point Linkage systems. - Uniparts is also actively exploring inorganic growth options, including acquisitions that fit strategically and are manageable in size. - An enabling resolution for up to INR1,500 crores has been passed to allow flexibility in raising funds, potentially for acquisitions or other strategic investments. - Capital expenditure aligns with their growth strategy, dual-shore manufacturing, warehouse expansion, and enhancing global supply chain capabilities.

- Uniparts expects mid-teens percentage revenue growth for FY 2026 driven primarily by new business awards rather than existing market growth. - Existing OEM business is projected to remain flat to low single-digit growth, with aftermarket growing modestly (2-3%). - New business worth approximately INR 203 crores recently awarded will drive significant growth, especially in large tractors (>70 HP) and construction equipment. - Geographic expansion into markets like Korea and Mexico, along with new product lines such as fabrication, are key growth drivers. - Mexico operations will start with stocking/warehousing in 2025 and may move towards manufacturing if cost-effective. - The aftermarket segment, which carries higher margins, is growing faster than the overall market (25-30% growth noted). - Growth will come from expanding system boundaries by adding more components per vehicle and entering new platforms. - Management expects Q4 of FY25 to show sequential improvement and a pick-up in growth into FY26 due to new projects kicking off.

- Management expects over 15% revenue growth in FY 2026, driven primarily by new business rather than existing markets which are flat to single-digit growth. - New business awards totaling around INR 203 crores over the trailing 12 months underpin this growth. - Growth is expected across large tractors (>70 HP), construction equipment (supported by near-shoring in Mexico), and aftermarket segments, with the latter exhibiting better margins. - Existing OEM business remains soft; aftermarket growth and new awards are key profit drivers. - Operating margins are projected to improve slightly due to operating deleverage as volumes and new business ramp up. - EBITDA margins have been maintained around 17%-18% in tough markets; management anticipates a rebound toward 20% margins as market conditions improve. - EPS growth is expected to track business growth, supported by margin improvement and stable dividend policy (currently paying ~80-90% of profits).

- Total new business award value during the trailing 12 months is approximately INR 203 crores, representing the annualized potential value of underlying projects (Page 5). - New order wins worth ~INR 203 crores include significant portions from construction equipment and large tractor segments (Page 10). - Orders include growth from new platforms, aiming to add a third platform contributing 25%-30% of sales in 1-2 years, reducing risk (Page 13). - The company is actively quoting large RFQs across multiple customers, including Case New Holland Construction and others, indicating a healthy order pipeline (Page 7). - Mexico near-shoring strategy is driving new business opportunities, with a notable $6.5 million contract from Bobcat starting January 2026 (Page 17). - Overall, customer engagement and RFQ processing are high, supporting mid-teens growth mainly driven by new business awards (Pages 15-17).