Wheels India Ltd

- No new debt fundraising planned currently; focus is on managing with internal accruals. - Company aims to avoid taking additional term loans for CAPEX unless there is clear market buoyancy. - CAPEX spending is being curtailed prudently in the second half and coming year to avoid incremental debt. - Previously planned CAPEX is being postponed or cut back due to export market slowdown. - Focus is strongly on free cash flow generation and deleveraging the balance sheet. - Term loans have come down, with most debt now being working capital borrowings. - Factoring without recourse with export customers is being explored to accelerate receivables and improve cash flows.

- Tractor exports are expected to continue growing quarter-on-quarter year-on-year. - Aluminum wheel business aims to break even and become profitable early next calendar year, driven by increasing volume and domestic OEMs. - Air suspension business is expected to show robust growth over the next 8-12 months, supported by state transport undertakings (STUs) and electric bus orders. - Windmill-related business, after a downturn this year, anticipates significant growth in FY23 and entry into offshore wind supply in FY24. - Export growth is phased and gradual, especially in North and Latin American markets, with Europe as a potential new market. - Domestic commercial vehicle demand is expected to improve gradually with government infrastructure spending boosting related segments. - Industrial segments like air suspension and fabrication for construction equipment are expected to see healthy EBITDA growth. - Overall, growth is cautious with phased business ramp-up and prudent CAPEX management.

- Aluminum wheel business expected to breakeven and become profitable by early next year, with full scale leading to double-digit EBITDA margins. - Industrial product segment anticipated to achieve clean double-digit EBITDA margins going forward after steel price corrections. - Air suspension and fabrication (construction) businesses growing and expected to yield healthy EBITDA and faster growth. - Windmill business, currently facing degrowth, is expected to grow significantly in FY24, including offshore wind opportunities. - Margin expansion anticipated as new businesses breakeven and under-recovery issues resolve. - Focus on internal accruals and improved free cash flow for deleveraging, with CAPEX prudently managed. - Export growth seen, though phased and gradual, particularly in aluminum wheels and tractor exports. - Overall margin improvement expected over next 1-2 years driven by scaling up newer segments and improved product mix.

- The company has made progress with one OEM they were already supplying, now exploring wider product range. - For two other OEMs, quotes have been submitted, RFQs won, products validated; phased trial with one plant for 3 months followed by expansion to other plants. - The process of gaining share of business is gradual, starting with ~20%, moving up to 30% per plant. - Discussions are currently more active in the Americas (US, Mexico, LatAm) and efforts to engage Europe are ongoing. - Tractor exports continue to grow quarter-on-quarter year-on-year. - The wind segment has backorders due to supply chain constraints but expects recovery and growth in FY24. - New plant started for machining large castings with confirmed backorders. - The company anticipates order normalization from December onwards following market corrections.

- A new plant for machining large castings related to windmill customers was started at the end of September, with an investment of about Rs. 75 crore. - Planned CAPEX for the year is being cut or postponed due to the export market slowdown, with postponement to next year or when the market improves. - Additional CAPEX will be considered only if market buoyancy is visible; the company aims to avoid taking additional debt for CAPEX. - Future investment plans include expanding aluminum capacity once volumes reach critical levels, with fresh investments planned to increase machining cells and casting machines to a target scale of 750,000 units. - Focus is on prudent CAPEX spending to support free cash flows and deleveraging. - Offshore wind parts supply may represent a strategic growth opportunity starting FY24.