Craftsman Automation hosted a conference call on May 10, 2022. In the conference call the company was represented by Mr. Srinivasan Ravi – Chairman and Managing Director.

Key takeaways of the call

In FY22, PV and CV segment witnessed a growth on YoY basis whereas two wheelers segment witnessed decline.

Recent lockdowns in china has impacted supply to some extent.

Company has performed well despite of inflationary headwinds and challenging macro environment.

Company is seeing strong demand in Q1 FY23, however there are some headwinds in terms of rise in crude oil price and rate hike taken by RBI. Company expects Q1 FY23 quarter performance to be same as Q4 FY22.

Company expects growth of approx 20% across all segments in FY23.

Debt equity has improved to 0.63 in FY22. ROE has improved to about 15% in FY22.

In Automotive powerstrain segment, company continued to win small orders. In FY22, value addition part of automotive powerstrain segment was approx Rs 760 crore.

In Automotive aluminium products segment, company expects volume growth in FY23. Company also expects improvement in margin for FY23.

In FY22, value addition part of Automotive aluminium products segment was approx Rs 147 crore.

In Industrial & engineering segment price hike benefit is yet to come, so company can witness margin improvement going forward. In FY22, value addition part of Industrial & engineering segment was approx Rs 267 crore.

In FY22, capacity utilization was 60-70% in automotive powerstrain segment and 57% in automotive aluminium products.

Long term debt has reduced from Rs 546 to about Rs 520 crore. Going forward company expects it to further come down.

Capex for FY23 will be approx Rs 220 crore.

Board approved the proposal for setting up of additional/new plants at Pune, Faridabad and Sriperumbudur. Existing capacity utilization at Pune, Faridabad and Sriperumbudur is 80%, 85% and 88% respectively.

Company proposed capacity addition of 2% at Pune, 1.5% at Faridabad and 10% at Sriperumbudur. Total investment required is Rs 65 crore. Period within which the proposed capacity is to be added is 24-36 months for Sriperumbudur and 18 months for Pune and Faridabad plant.

Board recommended a final dividend of Rs 3.75, per equity share of Rs 5 each (75%) for the financial year ended 31st March, 2022, subject to the approval of shareholders. Board fixed the record date as Friday, 10th June, 2022 for the purpose of determining the eligibility of the equity shareholders for the dividend.