Wardwizard Inno.

Q4 FY25 Earnings Call Analysis

Automobiles

Full Stock Analysis
fundraise: Yescapex: Yesrevenue: Category 1margin: Category 1orderbook: No information
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fundraise

Any current/future new fundraising through debt or equity?

- The company is looking to raise funds through both debt and equity options. - For the next financial year, they anticipate requiring around INR 250 crores in equity capital. - They plan to take debt primarily for working capital purposes. - Capex related to capacity expansion and showroom network will be partly funded through borrowing. - Distributor showrooms require investment by distributors themselves (INR 8 to 12 lakhs per showroom); no direct capex from company on this front.
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capex

Any current/future capex/capital investment/strategic investment?

- For the next financial year, the company plans approximately INR 250 crores capital expenditure in equity form. - Capex related to expanding distributor network is minimal; showrooms require an investment of INR 8-12 lakhs for interiors, borne by distributors themselves. - The company is borrowing funds and open to equity options for funding capacity expansion and ancillary unit setup. - A capital outlay of around INR 2,000 crores is planned for an ancillary cluster, covering two-, three-, four-wheeler expansion and ancillary spare parts. - Production capacity expansions are underway: Two-wheeler capacity at 450,000 units/year; three-wheeler capacity currently 18,000-20,000 units/year with plans to increase. - The company aims to open 100 more distributor showrooms in six months and approximately 150 in the next financial year, totaling 250 showrooms. - Exploring hydrogen battery technology with an 18-month development timeline, indicating a strategic technological investment.
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revenue

Future growth expectations in sales/revenue/volumes?

Future growth expectations for Wardwizard Innovations and Mobility Limited: - Vehicle sales target to increase from 44,000 units in the current year to about 75,000-80,000 units next year. - Sales volume expected to reach approx. 1,25,000 units by FY 2026. - Revenue projected to surpass INR 400 crores this financial year, with significant growth due to expanded distributor and dealer network. - Average selling price expected to rise from INR 72,000-1,25,000 currently to around INR 85,000, with inflation-driven increases anticipated. - EBITDA margins targeted to improve to 15%-16% from current mid-single digits, supported by cost savings from ancillary manufacturing units. - Additional 100 distributor showrooms planned within six months; total distributor showrooms to reach 250 by next financial year for better market coverage. - Company focusing mainly on expanding two-wheeler and three-wheeler production, with a 10 lakh INR price-point four-wheeler planned but not aggressively pursued.
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margin

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

- Target sales volume: 44,000 units in current year, aiming for 75,000-80,000 in next year, and 1,25,000 units by FY'26. - Revenue: Currently around INR193 crores (YTD), targeting to surpass INR400 crores by year-end. - EBITDA margins: Currently about 8%-12%, expected to rise by 8%-10% due to ancillary units manufacturing batteries and components. - Net profit margins: Expected to increase from current ~8% to around 15%-16% in next 2-3 years. - Ancillary units expected to contribute additional 3%-4% profit from next financial year onwards, enhancing profitability. - Capex: Approximately INR250 crores equity planned for next financial year to support growth. - Market share in EV segment aiming to increase from current 8%-9% to over 15% by next financial year. - Working capital cycle favorable with distributors paying in advance and minimal receivables.
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orderbook

Current/ Expected Orderbook/ Pending Orders?

- The transcript does not explicitly mention the current or expected order book or pending orders for Wardwizard Innovations and Mobility Limited. - However, several growth projections and sales targets are discussed: - Current year vehicle sales expected to reach around 44,000 units. - Next financial year sales targeted at 75,000 to 80,000 units. - FY26 sales projection around 125,000 units. - Revenue guidance includes INR 1,000 to 1,200 crore turnover with approximately 15% EBITDA margin. - Expansion plans include increasing distributor showrooms from 110 to 250 by next financial year. - Steady demand for e-vehicles is mentioned but no specific order book figures provided in the available transcript.