Stockrabit · Analysts
Questions across 9 calls

Srinivasan Ravi

Firm not listed in source transcripts

Craftsman Automation Limited

Craftsman Automation Limited CC-May26.pdf · 2026-05-08
The exit rate of the alloy wheel, approximately it is around volume- wise annualized when you look at it on the March. It is equal to around 3 million alloy wheels is the exit rate for the month of March. We have been ramping up in steps at Bhiwadi as well as in Shoolagiri. We have done at a volume which is at a run rate equal to close to 3 million wheels for the month of March for the annualized time, say.
Hosur one we started in Q3, and we are still ramping up. Yeah, both plants we are still ramping up. The exit run rate has been to the tune of annualized March number when we annualize, it is equal to around 3 million (nos).
Craftsman Automation Limited CC-Feb26.pdf · 2026-01-29
For the annualized basis, I think the aluminium will be moderating at a higher level. Q3, I think there's a start up of a new plant in Shoolagiri . We have incurred operational losses in the first quarter to prove out all the parts totally. So as a consolidated, I mean, as a stand- alone, it affected the stand- alone because it's quite also a significant plant. So we have started production now, and I think production will ramp up by Q2 to a reasonable level. I think it will be improving from Q4 onwards continuously. So, I don't see any big change in the aluminium business margins going forward. Optically, yes, the commodity prices have been quite v iolent in the upward surge, and it is quite significant in aluminium, and it has continued to remain that way. So, our margin will be on the gross margin or value addition, I would say. So optically, our margin may come down, but it will be quite intact as far as the margin is concerned. The second point will be that the -- for the secondary aluminium, there is some volatility on the imports because of the sudden surge of the dollar or the rupee depreciation, I would say. All this has played out, but we have a pass -through with the customer. Some are immediate. Some are taking a month or two. So, there isn't the effect in the long term. But in the short term, yes, there has been minor corrections there, yes.
So, we have not even touched 50% of the installed capacity, I would say, because of the high variety of parts, which are under -- is all subject to BIS approval also and the model developments and also customer validation. So the second thi ng is the -- because of the steep ramp- up and also addition of new plant, we are not in the double- digit margin yet or even high single digit. We are lower than that. But when the plant becomes optimal, I think by Q3, we should be reaching that level, Q3 of next year, I mean.
Craftsman Automation Limited CC-Nov25.pdf · 2025-11-10
The Kothavadi plant is operational at phase-I level which is for engineering products. For the Powertrain portion of it which is the stationary engines, as I mentioned, the revenue stream will start in 2029. But the order book is of the $100 million, I think $50 million of the order book is on paper received with us and products are under development, rest of it is in final stage of discussions. As you know, the lead time for development of these products and validation of the products is three to four years’ time, we are on track for the 2029 numbers. And we see a lot of traction in this business currently, owing to the no new capacities coming up anywhere in the world in general, because we started this a little earlier, we got some head start on this business going forward.
This question is specific to DR Axion and DR Axion you know that the current plant’s capacity is full and we have only three customers and the current customers have increased their order position, #1, #2 is there is within the aluminum segment we are moving into now more into cylinder blocks. So, we have an order on hand for which we need to do a CAPEX, so we just taken a larger piece of land so that we have for the future. Chennai by itself is slowly become to be a global hub for the automotive as you are aware that many of the customers just announced large CAPEX in that region. So, we are gearing up for the new requirements. As far as we are concerned, I think this is the first stepping stone as far as DR Axion is concerned on addressing the global demands for the overseas customers as well as the growth in the domestic industry.
Craftsman Automation Limited CC-Jun25.pdf · 2025-07-30
I'll answer the second part of the question first. 2030, this 100 million target is intact, that is both for the casting and machining of those particular parts. The castings will be done at Kothavadi. Machining will be done at the Arasur plant of Craftsman. So, we are ready and the order intake, I think we are -- our order book has almost crossed 50% of the 100 million target, projected for the annual basis. Of course, this comes into production in various phases. The prove- outs will be happening in FY '27 mainly and FY '28, and production will start a little in FY '27. And peak production, I think, will be touching in FY '29. This is also in line with the end-market requirement of our customers who are mainly catering these products to the data center customers totally. So currently, we are doing some engineering parts and the capacity utilization is hardly 5% or something like that. So, we are incurring some minor cash losses, of course, depreciation loss. So, this is why we prove- out the other engineering parts as well as the engine blocks. Some trials have already been taken of one particular part. So, now the strategy has been in cooperation with the customer that some of the parts are already being produced in Fronberg and there is an increased requirement of volume, the Craftsman Fronberg Guss GmbH. And the same customer is asking for increased v olume. So, we are getting the duplicate tooling from there and the prove-out will be happening along with our German team. And new customers who are coming in who are not customers of Fronberg, they expressed a lot of confidence in Fronberg after visitin g them, they have visited Fronberg some of them. And they have mandated that we complete the development in Germany before we shift it. So we expect that -- there are a few challenges in this sort of business, but we are fully equipped to meet the challenges because of our preparation, our investment and our thorough study from 2020 and careful understanding of the project and customers and also the acquisition of Fronberg, which has allowed us to have a first -hand view of the technology available. And the Craftsman team and the German team are working together. This is the update for Kothavadi.
As we speak today, whether it's Q1 or going forward in Q2, Q3, the alloy wheel portion of the business is today even very small compared to the entire aluminum business holist ically as a stand- alone itself totally, let alone the consolidated portion. So, I would rather put up, I think, less than 15%, 20%. 15% on the alloy wheel. Let me get back to that number. So now the other customers, whether it's domestic and export, there ramping up has happened. So in spite of the market being slow, our orders, which we won a few years back, started to ramp up. So, we will see the ramp- up continue in the coming quarters for stand- alone Craftsman aluminum business in spite of a little slowness in the domestic industry. So the alloy wheel business is around 13% of our revenue in the stand-alone. So on a consolidated basis, it doesn't make any significant change.
Craftsman Automation Limited CC-Mar25.pdf · 2025-05-08
See, the alloy wheel is in the region of close to Rs.40 crores for Q4 and we were EBITDA-neutral and EBIT negative of around Rs.5 crores for alloy wheel. And one more quarter we may be giving the breakup on the alloy wheel, once we are on the green side, I think we will not give the break up for strategic reasons. But, yes, the operational breakeven has happened with almost a Rs.40 crores revenue. And Sunbeam revenue for Q4, around Rs.300 crores is the revenue.
Yes.
Craftsman Automation Limited CC-Jun24.pdf · 2024-07-25
Yes, I had mentioned that the deal has been EUR 5.5 million and that is plus EUR 0.5 million of debt. So, that would be totally a EUR 6 million acquisition. In that, the breakup is EUR 3.5 million is for the share purchase for the land and building, which is the fixed asset. And the other fixed assets, including the movable assets like working capital, which is around EUR 2 million is th e acquisition. So, we can say that INR 60 Crore is the acquisition, and we plan to invest another INR 60 Crore over a period of 15 months into the company.
Aluminum, there is actually, as I mentioned, some market research shows that 15% of commodity prices have gone up even quarter -on-quarter. Some say, it is 12-13%. Let us take the lower number 12-13%. So, artificially, the top line is inflated by 12-13%. That is maybe the EBITDA optically looks 1% to 1.5% lower. We are on track on the aluminum business and Q1 always is a weak quarter for various reasons. One of the leading passenger vehicle manufacturers, they have a plant shut down, annual shut down during that period in the middle of May and there is always inventory correction. So, we are on track on the aluminum. I think the growth number of the 15% to 20% of aluminum in the standalone should be really looked at only as 14 %-15% growth. So, when you look at that and then look at the margins, I think the margins are intact.
Craftsman Automation Limited CC-Mar24.pdf · 2024-04-29
Quarter four you want?
There is, in a way, not directly a one-off, but indirectly there is a one-off. One thing, we have increased capacity to a large extent, so fixed cost has go ne up. So the top line has not improved along with that matter. And also we have invested for new plants. The Faridabad new plant is ready for, again, Stage 5 production, which has not started. And the other portion is the other exports have not picked up as we expected. This was the main reason. And the one-off, when you look at it, one-off wise, there has been a major inventory correction going into Q4 by our customer s, all our leading customers, both in the commercial vehicle segment within the country and also in South America, plus also the other domestic players who are expecting to move to Tier 5. They had producer inventory on Tier 4 products. Similarly, also on the passenger vehicle SUV sector, after the high for this year, there has been a pile-up of inventory at the customer end. So there was a correction, which was quite st eep. In fact, some of the customers didn't lift material from middle of March. So that way, it's a one-off.
Craftsman Automation Limited CC-Sep23.pdf · 2023-10-31
I understand where the question is coming from, what differentiates us from our competitors in the value chain have I understood you right?
I will touch on each of the segments. On the Powertrain segment while we are doing the machining activity, we don't have a foundry or we are not fully integrated on that side of the bus iness, but we are owning the process knowledge of the machining with the in -house captive manufacturing for all these special purpose machines and when you talk about special purpose machineries are quite complicated equipment starting from metal cutting, non- metal cutting machines like leak testing, washing, assembly stations and things like that. Then also the design of the process, the breakup of the process, how we are doing from operation 10 to operation 100 or operation 120, how we design the process for quality as well as productivity, and we are able to adjust and accommodate the increase or decrease in volumes according to the customer requirement and we are able to break up the small sub processes for any incremental volume requirement of the customer. Then comes the quality front, on the quality front the critical processes we are able to manage the quality processes better because we control the tooling, we control the design, we control the process fine tuning at our end. We are not dependent on any outside source on that, and we are one of the largest machine shops in the country and because of our vast experience, we are also able to work very well with our foundry partners to improve the raw material or the casting front also for a mutual benefit. Now the next situation is that when the prototyping needs to be done, we have such a large General purpose machine availability at our end that we are able to participate in the prototyping for the customer. The second important point is our vast experience in the cylinder block and head we are doing around more than a million -cylinder blocks now. Our capacity is 1.2 million -to-1.3-million- cylinder blocks and also, I think close to around 800,000 cylinder heads. We have come across various designs and various process related issues. We are able to give input to our customers during the design of a new product or point out improvements which can be done. Also, improvements which can be done for the better castability of the castings. So, this explains the Powertrain and the last bit is that whenever the project is end of life, we are able to reallocate the machines to new projects, even we are able to convert the special purpose machines suppose we own the special purpose machines we are able to convert it and if the customer wants it, we are able to convince the customer that the next project may certain equipment can be modified to be using. So, we are very effective on the CAPEX front also. The last point will be on the General-Purpose Capital Equipment and the General-Purpose Tooling, we are one of the largest consumers of these sort of machines in the country, so this gives us a large advantage on the scale and flexibility to quickly implement the project and move it forward. So, in the next segment of the business on the Aluminum segment, our aluminum history goes more than 20 years ago when we started the aluminum gravity and the sand -casting foundry for our export requirement. And now in the last 8-9 years, we have also been diversified in high pressure Die-Casting. Our tool room was making plastic dies, very critical plastic dies as well as aluminum pressure Die -Casting dies. Now we have stopped making plastic dies, so this told we are integrated that we are able to make the mould, we are able to do t he casting. In the casting process we are across most of the technology I would say on the casting and there is green sand, no bake sand, gravity Die-Casting, low pressure Die-Casting and high pressure Die-Casting. Now we are also getting into counter pres sure casting on aluminum. And on the machining front, we are also similarly integrated on the machining front on the aluminum business which we are able to capture the value stream across there, all the small sub segments there. In industrial engineering w hich has been the backbone of the company which is also supporting the Powertrain business and Aluminum business. We are having contract manufacturing where we are able to customize products for our customers for different end segment use across a wide range of industries within the country and outside the country. So, we are highly flexible and highly capable, so we are manufacturing very precision small parts to also we are machining parts up to weighing 10 tons or 15 tons for highly complicated induced a pplications. And for Industrial Engineering, we have got a in -house design facility for our products, which is a design strength of almost 100 people which is there. I hope this differentiates us.