Craftsman Automation Ltd (NSE: CRAFTSMAN) Q4 2025 Earnings Call dated May. 08, 2025
Corporate Participants:
Unidentified Speaker
Srinivasan Ravi — Chairman and Managing Director
Analysts:
Unidentified Participant
Mumuksh Mandlesha — Analyst
Abhishek Jain — Analyst
Ramakrishnan Seshan — Analyst
Mitul Shah — Analyst
Ajox Frederick — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the earnings conference call hosted by Craftsman Automation limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Srinivasan Ravi, chairman and managing director of Craftsman Automation Limited. Thank you. And over to you, Mr.
Ravi.
Srinivasan Ravi — Chairman and Managing Director
Good afternoon everybody and welcome to the earnings call for FY25. And I hope you had time to look into the PowerPoint presentation which has been put on the websites and also on the stock exchanges so that it will make it easy for the Q and A. So straight away we can start with the Q and A as what I would propose. But meantime let me give one headlines while you prepare your Q and A. Is that the guidance given last year? Last quarter, during the earnings call of FY26 for the first time we had given 7,000 crore top line and 1,000 crore EBITDA levels and a wide range of say 500 crore to 700 crore EBIT.
The 500 to 700 crore EBIT, we have already reached a 512 crore EBIT in the current year itself. So we are expecting the region of 650 to 700 crore a bit going forward in the next financial year because the depreciation will be around 40 crore. So the guidance remains intact in spite of whatever is happening in the geopolitical situation and the tariffs. So we are quite insulated and we are ramping up quite well to sustain whatever the numbers we are given. So I will. We will go to the Q and A directly. Yes please. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We request all participants to ask maximum of two questions at a time to allow all the other participants to ask questions. The first question is from the line of Mukesh from Anandrati Institutional Equities.
Please go ahead.
Mumuksh Mandlesha
Yeah, hi sir, Mumuk Shia from Anandrati. So firstly, just if you can help us on the few data points for the quarter. What was the two Wheeler annoying revenues and EBITDA and also similar for the Sunbeam Q4 EBITDA.
Srinivasan Ravi
EBITDA see the Malloy wheel is around 40 crore in the region of close to 40 crore for Q4 and we were EBITDA neutral and a bit negative of around cyclone or alloy wheel. And this is only 1/4. One more quarter we may be giving the breakup on the live yield once we have on the green side. I think we will not give the breakup for strategic reasons. But yes the operational breakeven has happened with the almost 40 crore revenue. And. Sunbeam revenue is for Q4 300. I don’t tear a ghost.
Mumuksh Mandlesha
And.
Srinivasan Ravi
That is the one time some subjects are there which is 20 leading to a given a 23 crore a bit EBITDA. Yes.
Mumuksh Mandlesha
23 crore positives right sir. For the yes, got it sir. And sir, good to see the improvement in the standalone margin. So can you help us understand particular powertrain segment? We have seen the improvement this quarter what led to the improvement there? And also can you update how the Kotavadi plant order book is shaping up for the heavy engines and for the FY26 and 27 how do you see the revenue trends there?
Srinivasan Ravi
Our train in the beginning I think on the except the last quarter I think for the last maybe almost 18 months we went through quite a modernization program, repair and maintenance which was hitting the expenses. I would say that is one thing. Second thing, the operating leverage was quite less. Capacity utilization was quite less across the old lines. New lines also were not ramping up. The customers were slow. So now overall slight improvement in the operating leverage has happened that is helping us totally. There has been from the multinational companies who have set up plants in India.
They have started to produce with one or two years delay I would say and there is some slight revival in the farm sector and a slight revival in the commercial waste sector. And whatever is the Daimler downside we had experiencing in the many quarters it is more or less stabilized now so there is nothing more. And whatever we have are able to utilize the plant slightly better and optimize our cost. This will be these margins will be sustained or improved depending on the quarter of the next financial year. But for the full financial year we can expect a better result on the powertrain even when compared to accumulative result compared to the Q4 result.
So that is the margins will creep up just like the period before we did this massive correction on the powertrain. So any questions on the powertrain, on the fundamental powertrain business then I will come to the new powertrain business.
Mumuksh Mandlesha
Yeah, this is fine, sir. I can wait for the new business.
Srinivasan Ravi
So the new business. Now the overall motive or whatever is the strategy behind the power plant business was we were so heavily dependent on commercial vehicle earlier to a very reasonable extent on farm sector and also construction equipment. And that was recent and little on the passenger vehicle segment. So all that continues to be the mainstay. But now our growth is going to come from not only revival of these segments, but also from the station engine side. We expect the first revenues to come in FY27, not in 2626. It will be there. The order book is filling up, but the development cycle time is around 18 to 24 months.
So we will not see any, even any three digit revenue. The three digit revenue will only come in FY27 on the new power line business. But as I mentioned, I think it will peak in 2029, 2030 for a $100 million revenue for this business. So for that the phase one of Kodavadi plant is ready and it has become operational in Q1. So we will see some revenue generated from this plant and the mission shop for missioning. The large engine blocks are also ready and already trials are going on for various customers. Orders are in place.
So you may appreciate these are very few companies in the world are doing this as a Tire 1 supplier. The OEMs are normally manufacturing them in house. And I would say less than 10 suppliers across the globe, including China are there for this sort of activity. And there was a limited capacity. So we have a global capability and global capacity now after the acquisition of Frondbock foundry and in Europe also there are only on the foundry side. Also there are less than half a dozen foundries who are operational for these large engine blocks and 2 or 3 in the North American region and 2 or 3 in Chinese in China.
So we are an exclusive league in the foundry outside the OEMs themselves. As I mentioned, the OEMs themselves are also running their own foundries and commissioning. And now because of the massive increase in demand for the data centers, backup power and mainstream power also is being used by these generators. The order books for these companies are quite full for the next three, four years. So we will see significant growth. And that is also prompting the outsourcing. But whatever said and done, the gestation period is very long. We started preparing in 2020 for this project. We made it public only in the annual report last year.
And now with the order book full, I’m confident about this 800 crore revenue. Coming in 29 or 2030.
Mumuksh Mandlesha
Got it sir. Just if I ask one last question sir, you mentioned in past the margin for the segment can be very good for the heavy engines part. Just want to understand, I mean this would be more accretive than the current margins. Or how do you see the range of the margins for this business?
Srinivasan Ravi
See the current business. You may be aware that we are not backward integrated and we have excellent top notch foundry partners who are leaders in India and also the OEMs themselves. Three of the OEMs in India, major OEMs are running their own foundries where we are getting the casting from. So it’s a mixture of job work and also we buy the castings from our foundry partners. So it is an assorted margin what you are seeing on the current powertrain business. Whereas the new powertrain business for the larger engines. Yes, it will start also with the sort of job work side of activity.
But the castings are not being produced in India. Most of them 95% of them. There is only one or two small suppliers here. So we are getting the castings from Europe and US to start with for the activity in 27 while we ramp up our foundry capacity here with the pro. Also the castings have to be validated. So when we are supplying with material it looks like as if the margins will be lower than the conventional powertrain business. But I can assure you that the margins are in line with the current powertrain business. As an formula wise, how we calculate when we are buying the castings from elsewhere.
There cannot be a margin on the castings. But we make our castings to be there. But the margin on the castings surely it will be slightly lower than the machining. Because machining is then value addition. There is no material cost involved. So optically it look like a higher margin. So on the blended average we are on par with whatever we are currently doing.
Mumuksh Mandlesha
Thank you so much for the answers.
operator
Thank you. The next question is from the line of Abhishek Kumar Jain from Alpha Accurate. Please go ahead.
Abhishek Jain
Thanks for opportunity and congregate for the strong set of numbers. So my first question on the aluminum side, so on the Sunbeam, how the quarterly when they top the revenue and EBITDA margin would be in FY26. So in this year, this quarter we have done around 300 crores kind of the numbers and EBITDA is around 6 to 7%. So how this revenue and EBITDA would be at the end of the quarter, at the end of FY26.
Srinivasan Ravi
So Q1 will be weak, Q2 will be strong. Q3 will be weak. Q4 will be Q4 will be the most strong on the both on the revenue and EBITDA numbers. So there are three four factors. The plant shifting from Gurugam to Biwadi will be completed by Q2 latest I would say so there will be consolidation happening in Q3. So Q4 the operating leverage at Bhiwadi will sit in and the cost optimization also will set in. And also manpower rationalization will be complete by Q4 with also peak revenue will be generated in Q4. So on a blended average we can say between 8 to 10% EBITDA is what we expect for the full financial year.
But Q1 will be quite muted.
Abhishek Jain
And what would this peak revenue in FY26? We assume that in dance in last quarter you have done around 200 crores. So what would be the increase in the.
Srinivasan Ravi
Yes, I have to think we are only guiding for around thousand ton of crores only for the year.
Abhishek Jain
1000 crore.
Srinivasan Ravi
1200.
Abhishek Jain
1200. So there won’t be any increase in the revenue?
Srinivasan Ravi
No. See we are under consolidation mode. So we are not really taking any new business. And the new business if we take it also the revenue will not be coming in the financial year. You can appreciate that this company was getting into an insolvency situation and in that case no new orders were given by customers or new projects are not going on in existing projects. So I think it is more of stabilization, reorganization and consolidation which will happen in the coming year. So that is where the margins will come. The whatever the other business of Craftsman by itself organically will be growing.
Their action also will be growing.
Abhishek Jain
And in on the doctor exam side, what would be the peak revenue in FY26 on FY27 will it be grow by that 10 to 12% or it would be better because of this capacity expansion plan for the Hyundai.
Srinivasan Ravi
So whenever we talk about whether Sunbeam Craftsman Dr. Action we have to take one thing into mind. There is always the question of the commodity price alumini. So that will also change the top line a little. So but I would say that between doctor and craftsman, craftsman will be growing at 20% more than 20% CAGR for the next two years. That is FY 2627. That is on the organic side of the conventional business of Craftsman is also growing. Plus the alloy wheel is also adding to the revenue on a blended average. So Overall we’ll be plus 20, 20 plus percent.
We’ll have a double digit growth on Dr. I would say on a cigare basis but I think 8 to 10% is realistic for a FY26 and maybe slightly higher than 10% in FY2 December.
Abhishek Jain
Okay and my last question on the loan borrowing side. Now we have around 1900% of the dating books. So what. What is your delivery plan for the next two to three years?
Srinivasan Ravi
So if you look at it the cash generation will be quite high in the even the next financial year plus aided by possibly the land sale by Q3 or Q4 of Sunbeam. That will add around 300 crore plus depending on that market value at that particular point of time. And our Capex guidance as a whole for a group will be around only around 750 to 800 crores. Totally.
Abhishek Jain
750 crores in F526.
Srinivasan Ravi
Yes. On a group level and a group level EBITDA of upward of 1000 crore and a land sale of 300 crore. The depreciation is around 450 crore. There will be some interest outflow and for Sandin there will be no tax but other I mean for TR and Transmuth there will be taxes.
Abhishek Jain
Okay, thanks. That’s all from my sir.
Srinivasan Ravi
Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one at this time. The next question is from the line of Ram from Avendes Park. Please go ahead.
Ramakrishnan Seshan
Hi, good afternoon. So sir, I wanted to understand your guidance on the alloy wheel revenue scale up both at Bimadi and Bozur over the next couple of years.
Srinivasan Ravi
The exact numbers I will not be able to give because there is still we are new in the business. But I think we have already given that number during the last earnings call itself on the alloy wheel. I think I may reiterate that number we are talking about. The Biwadi will be around 300 crore plus for FY26 and Hosur will be around 150 crores.
Ramakrishnan Seshan
150 crores for 596.
Srinivasan Ravi
Again it is already as per the earlier earnings call.
Ramakrishnan Seshan
Okay. Okay. And in funding server is exports an area that we are focusing on intensely. Can you talk about any new order wins there or RFQs that the company has?
Srinivasan Ravi
Sunbeam As I mentioned it was an insolvency situation. So there was no order pipeline, new order pipeline when we took over Sunbeam Totally. So it is a question of stabilization for the next one year before we get in any new water pipeline. And that will get into any sort of revenue only in FY27 and FY28 only. I think we are trying to leverage our operating leverage by consolidating our plant in Vivadi. So the Pakora plant of Sunbeam is also hardly 10 minutes away from the Bhibadi plant of Craftsman. The Gurugam plant of Craftsman is getting.
Gurugam plant of Sunbeam is getting shifted to also Biwadi. So this is giving operating leverage. So it’s a year of consolidation for some people.
Ramakrishnan Seshan
Okay, super. Thank you.
Srinivasan Ravi
So manpower also rationalization we mentioned there the union settlement is on and everything is on track as planned. So we don’t see any change in the strategy as we envisaged in the beginning of the day.
Ramakrishnan Seshan
Thank you very much.
operator
Thank you. The next question is from the line of Mittul D. Shah from Dam Capital. Please go ahead.
Mitul Shah
Sir. Thank you for being opportunity. My first question is you can help with the utilization of various business segments. Currently for Q4.
Srinivasan Ravi
I think yes on the powertrain, on the conventional powertrain business we have touched around 70 odd percent so I think the upper limit will be 85 to 90 because of the seasonality as well as there will be some customers losing market share or they will have some inventory correction which will happen. So there is headroom. So I think I will not say 70 slightly below 70. It’s very difficult to exactly put a number to it. Even the aluminum side we are at operating at around 70 to 70% but the auto book is quite strong so we need to increase CapEx.
We will quickly touch 85% by Q2 itself. So by Q3 we need CapEx for the new orders which are already there in the pipeline.
Mitul Shah
So second question is on your capex. Guidance of 752800 crore group level if. You can split broadly in terms of. Standalone and just 3, 2, 3 subsidiaries.
Srinivasan Ravi
50 crore for craftsman is what we expect in the current condition and between Sunbeam and Dr. Axion we will take it as it comes. We have just budgeted now and there is some repair and maintenance which is very old equipment at front book which may be around 40, 50 crore maybe there at Fronberg we’re evaluating.
Mitul Shah
Last question on as you initial remark highlighted that. There is no effect of tariffs so. Any indirect impact wherever we are exporting. And debt again through any root goes to us or anything like that.
Srinivasan Ravi
See we you might not know but we were been exporting for the last many many years at Kurzman from 95 onwards. So most of the all the businesses what we do we are either doing exports or FOB very rarely. I think hardly 5% of our business may be caf whatever exports we are doing as craftsman. So similarly for Dr. Axion, I think the only export is back to Korea. That is also FOB or X works. I don’t know where exactly it is not the cafe that is also to Korea. US exports as far as Sunbeam is concerned it is negligible.
It is more towards Mexico there. So I think around 15, 20% of Sunbeam’s revenue is coming from exports. So we don’t have any impact on the tariff. Our products are high value addition and they mean a lot to the customer. And I think they are very competitive also. So even if there is a tariff, they are willing to pay it and take it. Except one engineering customer, nobody has come and asked us for any price reduction on tariff. Nobody has even contacted us on this matter. So I don’t see that as an impediment for the future exports.
Mitul Shah
Yes sir. Thanks a lot and all the best.
operator
Thank you. Before we take the next question, we would like to remind the participants that that you may press Star and one to ask a question. The next question is from the line of Abhishek Kumar Jain from Alpha. Accurate. Please go ahead.
Abhishek Jain
Thanks for opportunity. My question on the guidance side that last quarter you have guided around 7000 crore of revenue and EBITDA would be around 1100 crores and that would be around. You maintain that guideline.
Srinivasan Ravi
Yes.
Abhishek Jain
So and in aluminum business you said that the growth would be 20% CAGR where the Dr. Growth would be 10 to 12% and there will be incremental revenue of the 600 crore from the Sunbeam. Can you please comment on the standalone business, how the growth will become from the standalone aluminium business.
Srinivasan Ravi
So the Q4 aluminium revenue is the right picture because as you understand that Sunbeam was having only six months consolidation. So the Q4 revenue has been around 1000 crore overall. So it will be more than 4000 crores for the year. Even depending on the seasonality it is more closer to 4,500 I would say so in the previous year we have on the consolidated number our revenue was 2150. Strictly not comparable. Totally. So when you took in 25, we look at the number of 3000 or crore and we are already at a run rate of 1000 crore per quarter.
So overall our growth will be on a consolidated basis more than 30%. But it’s not an Apple to Apple comparison. The real estate growth will be on a 20%.
Abhishek Jain
So we can expect around 4200, 4300 crores. Kind of the revenue and 35 to 40% kind of the revenue growth in aluminum, right?
Srinivasan Ravi
Yes, because it’s not comparable. The Q4 has been 1000 crore so we will be at anywhere between 4, 3 to 4500 crores overall. So that is what I was trying to say. It is not exactly Apple to Apple. On standalone will be more than 20% CAGRADE dear accident will be around 10 odd percent. Sunbeam is not really growing in that sense but the full year of results will add to that number.
Abhishek Jain
Okay sir. And in the power team business basically we have crossed around 500 crores kind of the revenue rate on a quarterly basis. In quarter third we have done around 512 crores. In quarter four we have done around 567 crores. So can we expect that this red date will continue in FY26?
Srinivasan Ravi
Yes, I think the worst is over for the powertrain. Our margins also will start creeping up with better operating leverage. But depends on one quarter to another quarter there may be some changes. Always Q1 will have some challenges but we don’t see much challenges here. Q3 will be always a challenge. So Q2 and Q4 we expect very strong quarters. So overall I think the run rate of on the powertrain. Powertrain will continue to grow. It will improve for the year. For the current year and in this.
Abhishek Jain
Quarter we have seen there’s a jump in the employee cost. So just wanted to understand that any one of his like I mean the others cost in it’s attached in the quarter four employee cost.
Srinivasan Ravi
See, you’re talking about consolidated number right? Not the standalone. Yes, that is the one off in Germany. Yes, correct.
Abhishek Jain
That how much?
Srinivasan Ravi
That that is four and a half crore. That is there. Yeah.
Abhishek Jain
What are happening?
Srinivasan Ravi
Yes, because there is a holiday. I mean accounting been like Christmas holidays, bonuses, all those things. Because we formed a new company and taken over and we had just bought the assets. So everything is in place now. So.
Abhishek Jain
When it will be accurate?
Srinivasan Ravi
Sorry, it’s not a VRs. It is something like provisioning the as per the their expenses throughout the year. There is leave holiday for August leave. There is Christmas holiday bonuses which are there. So for that to be made because a new company and when you take over all the employees. We have just made the provisioning. Totally.
Abhishek Jain
So just answering that sir. You are also looking for the some BRS in the Sunbeam also other facilities as well.
Srinivasan Ravi
Sunbeam is on track for that. Yes, we will be settling the balance. 500 people, 440 odd people who are waiting for their VRs settlement. Once he’s settling the closing down the plant. But there is a customer approval required for the new plant. That is taking some more time. Maybe a few months more. But we are on track as of today the Gurgaon plant. Almost 70% of the plant has been emptied. For the missionary portion of it. Only 20% of missionary had left even that we are ready to move. But customer needs end customer. I would say the Tire 1 customer.
Tire 2 customers are okay. But the Tire 1 customer. The OEMs, the passenger car manufacturers in North America. They need validation before they can move the production to the new site.
Abhishek Jain
What would be the quantum of the BRS expenses? And it will be also added in the apply expenses.
Srinivasan Ravi
Before we took over there is nothing new. It was 160 crores settlement for our thousand odd people. 500 people have left paid and the balance was provisioned in the opening when we took over itself. So no new provisioning will come out.
Abhishek Jain
So you have already taken over 160 crores provisioning in quarter third or quarter.
Srinivasan Ravi
Fourth opening balance itself when you took over the company. What we need to understand is we never paid anything for the company per se. It was equity into the company. It is not for buying any share. Shares are bought at one rupee. That is it. So all the money what we have put into the company has gone into the company for settlement of maybe some vendors and things like that. Even most of the liability of the banks were settled by the stoil owners. And the whatever the some of the bank liabilities was left behind which we funded was in lieu of the land sale of Guruka.
Abhishek Jain
So that means there won’t be any GRS expenses will be in a profit and loss account.
Srinivasan Ravi
Will it appear in sunbathe? Everything was provisioned in the beginning itself.
Abhishek Jain
And last my last question on the other expenses it started to go down. So just wanted to understand what are the other cost control measures you are taking? That’s why the other expenses will come down in the coming quarter.
Srinivasan Ravi
I mean you’re talking about expenses you’re talking about. Sorry, I didn’t get the question. Please.
Abhishek Jain
Other expenses. Other expenses which has come down in quarter four FY25 because of in quarter third there was. There was some one up.
Srinivasan Ravi
Yes. Because of this a lot of M and A work we have done. We have taken over 20% of the 24% of Deer Action Sunbeam takeover. There was Chrome door takeover. There is a lot of expenses we have incurred as one time.
Abhishek Jain
Will it come down to 20 or 2% which is used to be earlier like 21 22% in the. In quarter two or quarter one.
Srinivasan Ravi
Yes, I think the absolute number will increase as a percentage it will come down is correct.
Abhishek Jain
Thank you. Thank you.
operator
Thank you. The next question is from the line of Mumuksh Manlesha from Anandrati Institutional Equities. Please go ahead.
Mumuksh Mandlesha
Thanks for taking the question again. So in the segmental reporting there’s some line for others in the standalone business which is around 148 crore. Just can you explain what is address in the standalone business?
Srinivasan Ravi
So this is a one time subject which has come on two fronts. One is regarding some capex which has incurred by Sunbeam. We had to buy the equipment, keep everything ready because Sunbeam was not ready at that level financially. And we transferred the brand new missions to them totally. So it is no profit, no sale on the equipment because equipment has to be paid for. Otherwise we may not be able to do the shifting of the plant. Second thing was we rationalized the aluminium alloy inventory which was high in Craftsman by transferring at cost to drxm.
These are the two one offs. There is no it is not a transaction made for profit. It is not a manufacturing activity. So it cannot be termed as any income.
Mumuksh Mandlesha
Got it sir. So for the storage margin this quarter, I mean the industrial segment margins have seen lot of improvement in Q4 quarter. Can you explain what led to the improvement there? And going ahead for the next year, how do you see the margin for this business?
Srinivasan Ravi
See this is. You may be aware of this but I would like to reiterate one particular point on the storage business this is not at all capex intensive. There is capex but compared to the automotive business of both aluminium and powertrain, this is a negligible capex I would say. And working capital also the total capital employed is quite low. So even though margins may be low, once we see the traction what we got in Q4 which will continue into the next financial year, of course there can be some blips in quarter to quarter. But overall we can expect that the results for FY26 will be better than the results of Q4 of FY25.
The reason for that is the automated storage division is getting new orders because we have made enough inroads into the market. We have enough projects which have been implemented to showcase to our new incoming customers and we are getting the right pricing for the product number one. Number two, I think we also have rationalized the product costing and also on the storage, the static racking we are doing good, having good traction There. So as a blended company, I think we have matured as storage solution company. This is a very difficult business. Within five years we have come to a level that this can be really a standalone also possible storage solution.
Mr. Not that I’m implying anything. No, please don’t take it that level. But we have grown this business to be able to stand on its own feet now.
Mumuksh Mandlesha
Great to hear that. And also on the revenue side for Mixer, how do you see the growth for the business? Solid business.
Srinivasan Ravi
High teens. I would say almost 20%. We can expect the growth on these storage business.
Mumuksh Mandlesha
Got it sir. Just lastly on the one number. Sir, if you can help us, what was the DRX in Q4 Revenue and EBIT sir.
Srinivasan Ravi
I will. I don’t know but it will be already there. On the. This is little. We cannot diverse that because that is a competitive information. We can give you the revenue case.
Mumuksh Mandlesha
Sure sir. Yeah.
Srinivasan Ravi
Revenue doctor for 376.
Mumuksh Mandlesha
Got it. So yeah. Thank you so much for this.
operator
Thank you ladies and gentlemen. We will take that as the last question. I would now like to hand over the conference over to Mr. Ravi Srinivasan for closing comments.
Srinivasan Ravi
I think there is a couple of. One more question. Is there?
operator
I think yes, if you want we can take that. Ladies and gentlemen, the next question is from the line of Ajax Fredericks from Sundaram Mutual Fund. Please go ahead.
Ajox Frederick
Hi sir, thanks for the opportunity. So I have a couple of questions. One is on the balance sheet working capital, the OCF saw stretch when compression due to some working capital stretch. So on this consolidated business. So what is talking that sir, for the year.
Srinivasan Ravi
I didn’t understand the question.
Ajox Frederick
The operating cash flow for the full year in consolidated basis saw compression and that is because of a working capital stretch. So what is causing that operating cash. Flow to compress. Year on year?
Srinivasan Ravi
Because it’s a consolidated basis. Is Sunbeam right? Sunbeam. So it’s not an Apple to Apple comparison Because Sunbeam we had it only for six months. That may be the reason you may be not being able to compare.
Ajox Frederick
Okay. Was there any institution of working capital for onboard?
Srinivasan Ravi
Yes, there has been working capital infusion but not. It is still. The money is still not utilized. It is lying with the holding company there. So it has not been infused into the company. It is still lying as cash in the holding company. And we have been infused as I understand only 800,000 Euro for the working capital.
Ajox Frederick
Okay. Okay. And sir, secondly.
Srinivasan Ravi
Just. I want to mute for a minute. Just checking.
Ajox Frederick
Yeah.
Srinivasan Ravi
See. Okay. Now I get the Point because this is some sale. I think we need to understand the process of this auctioning by the insolvency agency and things like that. The right towards the real estate lies with the lenders totally. And the other movable assets are also lying with some of the working of the banks and some are lying with the creditors totally. So the proportionate method of working has made that the total deal was fixed and the apportionment was done by the credit committee there totally on this matter. So that is how the apportioning has been done.
That may be a slight distortion on how much has gone to fix assets and how much has gone to liquid assets. That’s all. Roughly 10.5 million or something like that as a deal. Apart from the takeover expenses which we observed earlier, then we have left some money there. 3, 4 million which is not required. But anyway we left it at the holding company. If they need, they can take it. That’s what is the total date.
Ajox Frederick
Okay. But it has been accounted and looking at for us.
Srinivasan Ravi
Still as laying as.
Ajox Frederick
Killer is not cash. Okay, understood. Okay. Okay.
Srinivasan Ravi
So secondly, it’s not gone to the operating company. Yes.
Ajox Frederick
Okay. And secondly on the guidance, right? We have a very strong guidance on powertrain, aluminum and even storage business. So if I tie it up to the underlying CV or PV industry, we may not see such high volume growth. So where is this confidence coming for us to deliver 20% kind of a growth in an organic manner?
Srinivasan Ravi
We have been diligently trying to diversify our customer portfolio. Now we earlier had six customers giving 50% of our revenue and balance. 50% of customers coming from more than equal to 100 customers. I would say now the top 60% revenue is coming from 12 customers and in diversified end customer segments. So our product mix is like this in a company side revenue. I mean at least this is the auto sector. No, this is the other company consolidated. If you look at it, the commercial vehicle portion is coming to 17%, two wheeler is coming to 18%.
Passenger vehicle is 32%, storage is 10%, non auto aluminium 6%, off highway is 5% and tractor is 4%. I think overall. I think we have diversified quite well overall and we have also invested for customers who are export oriented. Many of the OEMs from the Eastern part of the world like Japan and Korea are also setting their sights on African market for both passenger car, two wheeler, pickup trucks, tractors and all the products which are going to go into Africa in the future, which is the last market to be developed. The products are similar to India What India wanted in the last.
But India is migrating to slightly higher products now. So these products are not anywhere being used in the western world. So India is becoming a hub for manufacturing. Even the largest PV player in the country is guided for 4 million cars setting up a plant in one more plant in Haryana. And one more plant in one more plant has come upstream in Gujarat. This is towards export orientation. If you look at that manufacturer, that footprint in the rest of the world is reducing for manufacturing. And China in Japan itself they’re downsizing our operations and exports of vehicles are taking place from India to Europe as well as to Japan totally.
Similarly for the two wheeler market, Indian manufacturers also are exporting to Africa. And we’ll see that multinational companies two wheeler manufacturers from India also exporting to Africa. So all this is leading to some sort of a growth trajectory. I will take a few names. You have Escorts been taken over by Jarnese manufacturer. And this is also will lead to in the future some export growth. We have independent manufacturers, engine manufacturers, companies like Yanmar also. They are trying to increase the footprint India towards export. Maybe they will be downsizing their Japanese operations. Because I don’t want to take too many names here because you can understand that it is normal for when from a developed world where high cost of manpower is there and the market by itself is not growing in those countries.
It is logical for them to shift the production base here where it’s required for India and a similar product is required in new developing markets like South America and Africa. That is where my confidence trend is coming from. Second thing is the commercial vehicle segment has seen a lot of correction in the past. Totally now it is quite stable and the product maturity is continuing to happen. That the bigger trucks are selling better than the smaller trucks on the highway. Of course Intercity is different situation. But I think for the long haul routes and you also see that the tractor market is also looking up in a way because of the monsoon and things like that.
And we are also having the right customers on our passenger vehicle business as craftsmen. And the Sunbeam business on passenger vehicle is looking towards mainly towards North America and the Draxin. You’re aware that we are with the second largest PV player in the country. And they are setting up a new plant also in the western region. And we also started exports back to Korea for the parts similar to what we manufacture here. Not exactly the same part, similar family of parts already started.
Ajox Frederick
So basically it’s incremental customers and the customers also increasing capacity. So that’s helping you.
Srinivasan Ravi
So that’s second point is on alloy wheel and other parts. We are having an import which was coming from China. Now it is getting localized within here. It is not a new growth in the business, a growth in the requirement in India but it is imports are getting replaced by Indian suppliers. That’s all.
Ajox Frederick
Got it. Very helpful. Thank you.
operator
Thank you. As there are no further questions from the participants I now hand the conference over to Mr. Srinivasan Ravi for closing comments.
Srinivasan Ravi
Thank you. I just want to say a few words on the strategic point of view. We always said that most of the tier one suppliers. I’m not talking about the top 20, top 30 but I think the next leg of suppliers are subscale to attract any sort of attention from the global players as a supplier. And this is coming from the comparison within China. For example the aluminium capacity for castings and machining in the country is in the region of 10% of the Chinese capacity totally which is quite small. And that means there is a lot of headroom to grow.
The aluminium majors across the world are in anywhere between 2 billion to $8 billion in revenue each of them. And when Indian market is growing the aluminium content is growing. Naturally the lightweighting of the passenger vehicle has to happen. So while we’re waiting for all that I think we as craftsmen believe that we need to broad based our activity. And at half a billion dollar in aluminium business I think we are still subscale. We will try to grow this business. On the powertrain, traditional powertrain business. We are having a global size. So now we are attempting a global size on the station engine business.
That is the top five suppliers in the world is what we are aspiring to be there on the. That sort of. That means multinational companies setting up shop here will also be exporting large engines out of India. It’s only a matter of time which is there. You know that Europe has got its own set of challenges and us also and other developed countries like Korea and Japan have got a different challenge totally. So we are well poised in this matter. So we have done some capex investments little ahead of time. That is causing a lot of strain in the entire outlook of our balance sheet and things like that.
In a temporary period. You may recall that we have taken only 140150 crore as private equity as equity inflation in 2010. 12 put together from the west while respected private equity investors at that time. And then we have raised only 150 crore in the IPO in 21. So we went last year with the mandate to raise 1200 crore QIP sensing the opportunity and also sensing the disruption coming from tariffs and geopolitical situations also in Europe. So we want to capitalize on all the opportunities there. And during the fundraiser, I had to communicate with investors. We are going to have a few quarters, quite a few quarters, which we will not be giving the required results as desired by our investors.
So, not that we are totally out of the woods, but I think the worst is over. I think we will be looking up going forward, and the growth trajectory will continue for three years. Surely everything is the path is set right for that. So thank you very much and thank you for your confidence.
operator
Thank you. On behalf of Craftsman Automation Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.
Srinivasan Ravi
Thank you.