Craftsman Automation (CRAFTSMAN) Q3 24/25 earnings summary

Executive summary

• Significant investments and acquisitions, including DR Axion, Sunbeam, and Craftsman Germany GmbH, have driven growth and diversification, expanding the European presence.

• Greenfield projects at Bhiwadi, Kothavadi, and Hosur are underway, with Bhiwadi operational since August 31, 2024, and Hosur planned to complement Bhiwadi for alloy wheel production.

• Sunbeam became a wholly owned subsidiary, contributing positive EBITDA, and the Gurugram plant shift is in progress with a major land sale expected.

• Consolidated revenue for Q3 FY25 was ₹157,609 lakhs, up from ₹112,970 lakhs in Q3 FY24, reflecting strong year-over-year growth.

• Net profit for Q3 FY25 was ₹1,293 lakhs, down from ₹8,147 lakhs in Q3 FY24, impacted by exceptional items and higher expenses.

Financial highlights

• Consolidated EBITDA for the nine-month period was INR 609 crore, down from INR 684 crore year-over-year due to startup and expansion costs.

• Q3 FY25 EBITDA was ₹12,213 lakhs, down from ₹16,460 lakhs in Q3 FY24.

• Powertrain segment reported Q3 FY25 revenue of ₹45,752 lakhs and EBIT of ₹50 crores, up 12% and 88% year-over-year, respectively.

• Aluminium segment posted Q3 FY25 revenue of ₹91,637 lakhs and EBIT of ₹72 crores, with category-wise revenue split: 31% 2-wheeler, 33% 4-wheeler, 36% others.

• Exceptional items of ₹1,476 lakhs related to subsidiary relocation and transfer of control.

Outlook and guidance

• Consolidated revenue is projected to rise from INR 5,500 crore to INR 7,000 crore in the next financial year.

• EBITDA is expected to grow from INR 850 crore to over INR 1,100 crore, a 29% increase, with EBIT rising 40% to INR 700 crore.

• New aluminium products plant in Southern India will add 15% capacity within 9-12 months, with an estimated investment of ₹150 crores, 90% financed by term loans.

• Bhiwadi plant to be EBIT neutral by Q1 FY26 and EBIT positive by end FY26; Sunbeam to be EBIT positive by Q2 FY26.

• Powertrain margins are expected to recover to original levels within two years as expansion stabilizes.