Craftsman Automation Limited , a leading engineering company, has reported strong financial results for the first quarter, showcasing resilience in a challenging market environment. The company maintained its full-year guidance, signaling confidence in its growth trajectory.

Key Financial Highlights

• Consolidated EBITDA margin stood at 15%
• Net debt to EBITDA ratio improved to 2.27
• Standalone aluminum segment revenue grew by 56% year-on-year

Segment Performance

Powertrain

The Powertrain segment demonstrated resilience, with margins improving to 15.2% despite industry slowdown. This improvement was attributed to optimized costs and stable operations following previous quarters' modernization and maintenance activities.

Aluminum

The aluminum segment showcased significant growth, with standalone revenue increasing by 56% year-on-year. This growth was driven by both traditional aluminum operations and the ramp-up of the alloy wheel facility in Bhiwadi.

Subsidiaries Performance

• DR Axion: Revenue of INR 408.00 crores
• Sunbeam: Revenue of INR 291.00 crores
• Craftsman Germany: Revenue of INR 67.00 crores

Strategic Developments

1. Sunbeam Integration: The company successfully completed the closure of Sunbeam's Gurgaon plant and equipment relocation, marking a significant milestone in its integration strategy.

2. Kothavadi Plant: The new facility has secured over 50% of its $100 million revenue target for 2030, with production expected to commence in FY27.

3. Alloy Wheel Business: The Bhiwadi plant has turned EBITDA positive, contributing approximately 13% to the standalone aluminum segment revenue.

Future Outlook

Craftsman Automation's management maintains its full-year guidance of INR 70 billion in revenue and INR 11 billion in EBITDA. The company plans a consolidated capex of INR 800.00 crores, targeting a 20-25% growth rate.

Srinivasan Ravi, Chairman and Managing Director, commented on the results, stating, "We are on track with our growth plans, and our diversified business model continues to show resilience. The improvement in our net debt to EBITDA ratio demonstrates our commitment to financial prudence while pursuing growth opportunities."

Debt Management

The company reported a consolidated net debt of INR 2,400.00 crores. Management emphasized its focus on maintaining a healthy net debt to EBITDA ratio, aiming for a comfortable range of 1.5 to 2.

Conclusion

Craftsman Automation's strong Q1 performance, particularly in the aluminum segment, underscores its robust business model. With strategic investments in new facilities and ongoing integration efforts, the company appears well-positioned to capitalize on growth opportunities in the engineering sector.

Investors will be watching closely to see if the company can maintain its growth momentum and achieve its full-year targets amidst evolving market conditions.

Craftsman Automation , a leading engineering company, has made strategic investments in two solar power companies as part of its commitment to sustainable energy solutions. The company announced equity investments in Altilium Solar 1 Private Limited (ASPL1) and Altilium Solar 3 Private Limited (ASPL3) to secure solar power under the Group Captive Scheme, in compliance with the Electricity Act, 2003.

Investment Details

Craftsman Automation has invested in two solar power companies:

Company Profiles

Altilium Solar 1 Private Limited (ASPL1)

• Incorporation Date: March 15, 2023
• Registered Office: Bangalore, Karnataka
• Business: Power generation
• Recent Financial Performance:
  • FY 2024-25 Turnover: Rs. 5.42 crore
  • FY 2023-24 Turnover: Nil
  • FY 2022-23 Turnover: Rs. 55,000

Altilium Solar 3 Private Limited (ASPL3)

• Incorporation Date: May 10, 2025
• Registered Office: West Delhi, India
• Business: Power generation
• Financial Performance: Yet to commence operations

Strategic Implications

These investments align with Craftsman Automation's strategy to secure sustainable power sources for its operations. By participating in the Group Captive Scheme, the company aims to optimize its energy costs while contributing to the growth of renewable energy in India.

Regulatory Compliance

Craftsman Automation has confirmed that these investments do not fall under related party transactions, and no promoters or promoter group companies have any interest in the acquired entities. The investments are made in compliance with the provisions of the Electricity Act, 2003.

The company's move into solar power investments demonstrates its commitment to sustainable practices and long-term energy security. As Craftsman Automation continues to grow its core engineering business, these strategic investments in renewable energy are expected to provide both environmental and economic benefits.