|
Craftsman Automation hosted a conference call on Oct 17, 2022. In the conference call, the company was represented by Mr. Srinivasan Ravi – Chairman and Managing Director.
Key takeaways of the call
In Q2 FY23, Company delivered strong growth driven by improvement in product mix. Both PV and CV segments witnessed a growth on YoY basis.
Company is confident of delivering CAGR of approx 20% for next few years driven by new order wins and improvement in product mix.
Management is focusing on products, which have high value add potential. Company also got new EV related orders, however size of orders is not huge as of now.
In Q2 FY23, EBITDA Margin of auto power train business has come down however EBITDA margin of industrial & engineering segment has gone up.
In Q2 FY23, value addition part of automotive powertrain segment was approx Rs 203 crore compared to Rs 88 crore in Q2 FY22.
In Q2 FY23, value addition part of Automotive aluminium products segment was approx Rs 68 crore compared to Rs 61 crore in Q2 FY22.
In Q2 FY23, value addition part of Industrial & engineering segment was approx Rs 75 crore compared to Rs 42 crore.
In Industrial and engineering segment growth was driven by rising demand for storage of e-commerce, FMCG, food & beverages.
Capex for FY23 will be around Rs 275 crore compared to earlier guidance of Rs 225 crore due to an additional order for which the customer expects production to start this financial year.
In Q2 FY23, Storage Solution and Material Handling business delivered revenue of Rs 111 crore and 189 crore in H1 FY23.
Storage Solution and Material Handling business is doing well. Management believes storage business will expand and assist margins at 12% at least in the coming years.
Overall debt stands around Rs 720 crore as of 30th sept 2022.
Company is likely to move to new tax structure of 26% effective tax rate starting from FY24.
In the coming years, all the three segments of the company are expected to grow as most of the user industries will be on a strong recovery path.
|