Craftsman Automation Limited has expanded its renewable energy portfolio with a strategic investment in Viksha Green Energy Private Limited (VGEPL), marking another step in the company's commitment to sustainable power solutions. The investment was disclosed under Regulation 30 of SEBI (LODR) Regulations, 2015.

Latest Investment Details

The company has made a cash investment in Viksha Green Energy Private Limited to secure solar power under the Group Captive Scheme:

About Viksha Green Energy Private Limited

Viksha Green Energy Private Limited is a newly incorporated power generation company with the following profile:

Previous Solar Investments

Craftsman Automation has previously invested in two other solar power companies as part of its renewable energy strategy:

Strategic Rationale

These investments align with Craftsman Automation's strategy to secure sustainable power sources for its operations. The Group Captive Scheme allows the company to optimize energy costs while supporting India's renewable energy growth. The investment in VGEPL is made purely for solar power procurement purposes under the provisions of the Electricity Act, 2003.

Regulatory Compliance

Craftsman Automation has confirmed that the investment in Viksha Green Energy does not fall under related party transactions. None of the promoters, promoter group, or group companies have any interest in the acquired entity, ensuring arm's length transaction compliance.

The company's continued investments in solar power companies demonstrate its commitment to sustainable practices and long-term energy security as it expands its renewable energy portfolio.

Craftsman Automation Limited , a leading diversified engineering company, has released its financial results for the first quarter, showcasing significant growth in revenue despite facing margin pressures.

Strong Revenue Growth

The company reported a consolidated revenue of ₹1,784.00 crore for Q1, marking a substantial 55% year-over-year increase from ₹1,151.00 crore in the same quarter of the previous year. This impressive growth demonstrates Craftsman Automation's strong market position and expanding operations.

Earnings Performance

Despite the robust revenue growth, Craftsman Automation experienced a decline in its profit margins. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin dropped from 20-21% to approximately 14% due to changes in product mix and growth in the aluminum business with pass-through pricing.

Net profit for Q1 stood at ₹70.00 crore, showing a 19% increase from ₹59.00 crore in the same quarter last year. However, the net profit margin remained stable at 4%.

Segment-wise Performance

Craftsman Automation's business is divided into three main segments:

1. Aluminum Products: This segment emerged as the largest contributor, accounting for 60% of the total revenue in Q1. It reported a revenue of ₹1,071.00 crore, more than doubling from ₹528.00 crore in the same quarter of the previous year.

2. Powertrain: Contributing 28% to the total revenue, this segment grew by 19% year-over-year, reaching ₹496.00 crore in Q1.

3. Industrial and Engineering: This segment, which includes storage solutions, accounted for 12% of the revenue, with a modest 5% growth to ₹216.00 crore.

Future Outlook and Expansion Plans

Craftsman Automation has outlined ambitious growth plans for the coming years:

• The company is projecting a consolidated capital expenditure of ₹800.00 crore for the current fiscal year.
• It aims to achieve a 20-25% growth rate overall.
• In the aluminum segment, Craftsman Automation expects a 20-25% CAGR over the next four years.
• The company maintains its full-year revenue target at ₹7,000.00 crore, with an EBITDA target of ₹1,100.00 crore and EBIT between ₹650.00-700.00 crore.
• The storage business is expected to achieve 15% revenue growth with EBITDA margins close to 4%.

Expansion and Acquisitions

Craftsman Automation has been actively expanding its operations:

• The company recently acquired 100% of DR Axion India and Sunbeam Lightweighting Solutions Pvt. Ltd.
• It has also acquired Craftsman Fronberg Guss GmbH in Germany, expanding its international presence.
• A new greenfield facility is under construction in Hosur, India, which will further enhance the company's manufacturing capabilities.

With its strong financial performance and strategic expansion plans, Craftsman Automation appears well-positioned to capitalize on growth opportunities in the engineering and automotive sectors, despite facing some margin pressures in the short term.

Note: All financial figures are in Indian Rupees (₹) and 1 crore equals 10 million.