Shiv Kumar Sehgal
New Member
Utilization of Funds from Recent QIP:
- Following the Rs 700-crore QIP, the funds will be utilized for repaying debt and long-term working capital.
- Setting up additional lines for manufacturing the Vande Bharat coach and strategic partnerships with companies like ABB for propulsion and ECMS manufacturing.
Funding Status and Future Plans:
- The company believes it is well-funded for the next two to three years for both capex and working capital requirements.
- Acknowledges the rapid pace of developments in the country and the need to keep pace with growth opportunities.
- The current funding adequacy is based on existing plans and visibility, but the company aims to stay prepared for future opportunities.
Opportunities and Approach:
- Describes the current market opportunities as abundant, comparing them to buses at a bus stop, with new opportunities emerging frequently.
- Emphasizes the importance of being selective and cautious in choosing opportunities to avoid over-committing and under-delivering.
- Highlights the need to choose opportunities wisely amidst the ongoing boom.
Order Book and Tendering:
- The company has an order book pipeline for almost two and a half years for the freight wagon segment.
- Actively bidding on tenders for additional orders, considering the available capacity to avoid over-commitment.
Competition and Industry Dynamics:
- Acknowledges that competition is present but views it positively, considering it a driver for staying competitive and improving efficiency.
- Expresses confidence in staying ahead of the curve in terms of competitiveness.
Payment and Receivables:
- States that the railways have been a responsible and efficient buyer with minimal delays in payments.
- Differentiates between the EPC business, where delays may occur, and the company's supply contracts.
Business Risks and Elections:
- Believes in focusing on the current situation and not attempting to predict the future.
- Expresses confidence in India's growth trajectory and the ongoing infrastructure development.
Margin Outlook:
- Operates in two business segments: freight and passenger.
- Normalized margin for the freight business is around 11-12%, subject to variations based on specific contracts.
- Forecasts the passenger business to take off gradually, aiming for a capacity of 72 coaches per month with the potential for better margins.
Diversification:
- Responds humorously to the mention of buses and airlines, stating that such references are competition for the company, not diversification.
The discussion provides insights into the company's financial plans, funding status, and its approach to emerging opportunities in the railway sector.
- Following the Rs 700-crore QIP, the funds will be utilized for repaying debt and long-term working capital.
- Setting up additional lines for manufacturing the Vande Bharat coach and strategic partnerships with companies like ABB for propulsion and ECMS manufacturing.
Funding Status and Future Plans:
- The company believes it is well-funded for the next two to three years for both capex and working capital requirements.
- Acknowledges the rapid pace of developments in the country and the need to keep pace with growth opportunities.
- The current funding adequacy is based on existing plans and visibility, but the company aims to stay prepared for future opportunities.
Opportunities and Approach:
- Describes the current market opportunities as abundant, comparing them to buses at a bus stop, with new opportunities emerging frequently.
- Emphasizes the importance of being selective and cautious in choosing opportunities to avoid over-committing and under-delivering.
- Highlights the need to choose opportunities wisely amidst the ongoing boom.
Order Book and Tendering:
- The company has an order book pipeline for almost two and a half years for the freight wagon segment.
- Actively bidding on tenders for additional orders, considering the available capacity to avoid over-commitment.
Competition and Industry Dynamics:
- Acknowledges that competition is present but views it positively, considering it a driver for staying competitive and improving efficiency.
- Expresses confidence in staying ahead of the curve in terms of competitiveness.
Payment and Receivables:
- States that the railways have been a responsible and efficient buyer with minimal delays in payments.
- Differentiates between the EPC business, where delays may occur, and the company's supply contracts.
Business Risks and Elections:
- Believes in focusing on the current situation and not attempting to predict the future.
- Expresses confidence in India's growth trajectory and the ongoing infrastructure development.
Margin Outlook:
- Operates in two business segments: freight and passenger.
- Normalized margin for the freight business is around 11-12%, subject to variations based on specific contracts.
- Forecasts the passenger business to take off gradually, aiming for a capacity of 72 coaches per month with the potential for better margins.
Diversification:
- Responds humorously to the mention of buses and airlines, stating that such references are competition for the company, not diversification.
The discussion provides insights into the company's financial plans, funding status, and its approach to emerging opportunities in the railway sector.