Future growth expectations in sales/revenue/volumes?

The company targets a turnover of Rs. 1,500 to Rs. 2,000 crores per annum within the next five years. Focus is on maintaining EBITDA margins between 20% to 22%. Expect strong growth in the Aerospace business, which grew 18.5% YoY and has high order visibility. Order book as of March 31, 2019, stood at Rs. 822 crores with around 56% from core manufacturing. Pipeline includes Rs. 1,500 crores of offers pending finalization, expected to convert in next 6-8 months. Current manufacturing facility can support Rs. 500 to Rs. 600 crores turnover without additional CAPEX. Anticipated CAPEX of around Rs

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

Walchandnagar Industries aims for a turnover of Rs. 1,500 to Rs. 2,000 crores within the next five years. Target EBITDA margins are set at 20% to 22%, focusing on high-tech manufacturing rather than top-line growth alone. The company emphasizes sustaining EBITDA margins above 20%, prioritizing cash generation and profitability. Growth will be driven by products with inherent technological advantages, especially in Aerospace, Nuclear, Defence, Gear Boxes, and export markets. Existing manufacturing capacity can support Rs. 500-600 crores turnover without additional CAPEX; increased CAPEX

Current/ Expected Orderbook/ Pending Orders?

As of March 31, 2019, Walchandnagar Industries Limited had an order book of Rs. 822 crores. Approximately 56% of this order book value comprises orders from the core manufacturing business. The company has submitted offers worth around Rs. 1,500 crores in the pipeline. These offers are expected to be finalized within the next six to eight months. Management anticipates that order inflows for the fiscal years 2019-2020 and 2020-2021 will be substantially higher compared to the previous two years.

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Walchandnagar Industries LtdQ1 FY19Industrial Manufacturing

Walchandnagar Industries Ltd Q1 FY19 Earnings Call Analysis

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

Price: ₹274Market Cap: ₹1.6K CrSector: Industrial Manufacturing

Management growth scorecard

Revenue

Category 2

Margin

Category 1

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 2

→The company targets a turnover of Rs. 1,500 to Rs. 2,000 crores per annum within the next five years.
→Focus is on maintaining EBITDA margins between 20% to 22%.
→Expect strong growth in the Aerospace business, which grew 18.5% YoY and has high order visibility.
→Order book as of March 31, 2019, stood at Rs. 822 crores with around 56% from core manufacturing.
→Pipeline includes Rs. 1,500 crores of offers pending finalization, expected to convert in next 6-8 months.
→Current manufacturing facility can support Rs. 500 to Rs. 600 crores turnover without additional CAPEX.
→Anticipated CAPEX of around Rs. 75 to Rs. 100 crores over the next 5-7 years primarily in Nuclear, Gear Boxes, and Aerospace sectors.
→Export opportunities seen in Defence and Nuclear segments to new countries under government policy.

Margin guidance

Category 1

→Walchandnagar Industries aims for a turnover of Rs. 1,500 to Rs. 2,000 crores within the next five years.
→Target EBITDA margins are set at 20% to 22%, focusing on high-tech manufacturing rather than top-line growth alone.
→The company emphasizes sustaining EBITDA margins above 20%, prioritizing cash generation and profitability.
→Growth will be driven by products with inherent technological advantages, especially in Aerospace, Nuclear, Defence, Gear Boxes, and export markets.
→Existing manufacturing capacity can support Rs. 500-600 crores turnover without additional CAPEX; increased CAPEX (up to Rs. 100 crores planned over 2-3 years) will fuel higher growth.
→Debt reduction and release of retention money will help improve financial health, supporting earnings growth.
→Overall, the approach is sustainable profit growth with improved Return on Capital Employed (ROCE) and Earnings Per Share (EPS) over 3-5 years.

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Fundraise plans

Yes

No information is provided regarding the same in the latest conference call.

Order book

Yes

→As of March 31, 2019, Walchandnagar Industries Limited had an order book of Rs. 822 crores.
→Approximately 56% of this order book value comprises orders from the core manufacturing business.
→The company has submitted offers worth around Rs. 1,500 crores in the pipeline.
→These offers are expected to be finalized within the next six to eight months.
→Management anticipates that order inflows for the fiscal years 2019-2020 and 2020-2021 will be substantially higher compared to the previous two years.

Capex plans

Yes

No information is provided regarding the same in the latest conference call.

How does Walchandnagar Industries Ltd rank vs peers in Industrial Manufacturing?

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