Date: June 12, 2025

The National Stock Exchange of India Limited The Bombay Stock Exchange Limited (BSE)
Exchange Plaza, Bandra-Kurla Complex 25th Floor, Phiroze Jeejeebhoy Towers
Bandra (East), Mumbai- 400 051 Dalal Street, Mumbai-400 001
Symbol: RACLGEAR Scrip Code: 520073

Subject: Investor Conference Call Transcript

Dear Sir/Madam,

Pursuant to Regulation 30 of Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 and other applicable Regulations, please find
enclosed herewith the Transcript of Analysts/Investor Earnings Conference Call which was held
on Friday, June 6, 2025 at 04:00 P.M. (IST) to discuss the Company’s Q4 & FY 24-25 earnings.

The aforesaid information shall also be made available on the website of the Company at
[Link].

You are requested to take note of the above and oblige.

Thanking You,

For RACL Geartech Limited

Digitally signed by Neha Bahal

Neha Bahal DN: cn=Neha Bahal, c=IN, st=Delhi,

o=Personal, title=8911,
serialNumber=1070600d51cfb7a3e7f9237b77
ab72982622bba45fb9e3376de0904c6246d09
9
Date: 2025.06.12 [Link] +05'30'

Neha Bahal
Company Secretary and Compliance Officer
 RACL GEARTECH LIMITED
Q4 FY 2024-25 EARNINGS CONFERENCE CALL
06TH JUNE, 2025

MANAGEMENT:
MR. GURSHARAN SINGH – CHAIRMAN & MANAGING DIRECTOR
MR. JITENDER JAIN- CHIEF FINANCIAL OFFICER
MR. PRABH MEHAR SINGH- VICE PRESIDENT, FINANCE & BUSINESS
EXCELLENCE
MS. NEHA BAHAL- COMPANY SECRETARY & COMPLIANCE OFFICER
Ms. Neha I am Neha Bahal, Company Secretary and Compliance Officer of RACL
Bahal Geartech Limited. On behalf of the company, I would like to extend a warm
welcome to all of you to this post-results conference call for the fourth
quarter and the financial year 2024-25. I will be your moderator for today's
session.

Before we begin, I would like to make a few important announcements.

Please note that this conference call may include forward-looking
statements based on the company's current beliefs, opinions, and
expectations. These statements are not a guarantee of future performance
and are subject to various risks and uncertainties, which may cause actual
results to differ.

Additionally, all participant lines will be on mute during the presentation,

and we will have a Q&A session at the end of the presentation, where you
can ask any questions you may have. If you need any assistance during the
call, you can submit your questions via the Q&A box or raise your hand, as
per the available options on the screen, and we will assist you accordingly.

Please be informed that this call is being recorded.

We are pleased to be joined today by the management team of RACL

Geartech Limited, represented by:
 Mr. Gursharan Singh, Chairman & Managing Director
 Mr. Jitender Jain, Chief Financial Officer
 Mr. Prabh Mehar Singh, Vice President - Finance & Business
Excellence

With that, I now invite Mr. Gursharan Singh for his opening remarks. Over
to you, Sir.
Mr. Hello friends, good afternoon. First of all, we're sorry that this time the call
Gursharan was delayed as compare to our general schedules being held earlier, reason
Singh was closed on annual accounts and many other issues related with the
preferential outgoing. But it is better to be late than never. So, I welcome
you all and I know that this time there are many participants attending this
call so it really shows the continued trust and confidence of all of our
investor’s fraternity into the Company management and operations of
RACL. So, we're very, very glad to be associated with you. Before we start
our interactions. We will start with presentation. I would only say that we
are actually on the right track and something really on the part of growth
once again last year was a bit flattish because of the global scenarios, but
yes, now things are really looking up and during the course of discussions
and deliberations today, we'll be able to throw more.
Light on how things are looking up in the future. Thank you once again for
 joining this call and I'll hand it over now to JJ and Prabh for taking over the
presentation then after that we can deliberate to our QA discussion and I
take the opportunity to welcome all of you once again to this quarterly
discussion and interaction with all of you. Thank you. Over to JJ and Prabh.
Mr. Jitender Good afternoon everyone. This is Jitender Jain, the CFO of the Company.
Jain A warm welcome to everyone, so I'll come to the presentation part first and
then we'll take up the questions further.
Yeah, so this is the snapshot of your company. We are a 1983 established
company. FY25, we achieved clogged turnover of 4.27 billion, close to $50
million. We have 811 employees. Our product applications are across all the
segments, whether it's two Wheelers, 3 Wheelers, passenger cars,
commercial trucks, agricultural equipment and all.
Our corporate offices headquartered at Noida. We have two manufacturing
locations. One is at Gajraula, another is at Noida and we have 3 warehouses
in Europe. Our product range stands across transmission gears and shafts
subassemblies, machine parts, industrial gears and chassis parts. We are A-
credit rating by care. We are listed on both the stock exchanges of India and
we have one subsidiary based at Austria. Our core competencies lie in all
the position manufacturing, machining, aluminium, machining there,
cutting across all this framework which you can think of only in the
automobile components.
We have all these certifications which one manufacturing entity requires
including ISO, Tisax and other.
We want to introduce our Board of Directors. So, we have a seasoned team
of board of directors. Mr. Gursharan Singh, he's the Chairman and
Managing Director of the company. Mr Singh is a diploma holder in
mechanical engineering with PGT in export management.
Sir has been serving RACL for more than 32 years now and is actively
involved in the various stages of growth of RACL. He is the Chairman and
Managing Director of the company and managing the overall operations of
the company.
Coming to our Executive Non-Independent Directors.
First is Mr Anil Sharma. So, Mr. Anil Sharma, he is an engineering graduate
BE (Electrical) from the University of Roorkee and having post graduate
diploma in management from All India Management Association, New
Delhi.
He has retired as General Manager of PICUP, a State Level Industrial and
Development Corporation. He has a wide experience of more than 37 years
of project development, implementation and follow up in different
segments of industry particularly in the automotive components and
telecommunication sectors.
And this is another Executive Non-Independent Director, Mrs. Narinder
Paul Kaur. So, she's done a Bachelor of Science from Kurukshetra
University and Master of Arts from Punjab University. Mrs Kaur is looking
after the functioning of Noida plant of the company since 2011. So, these
are the two Executive Non-Independent directors of our board and coming
to the Non-Executive Independent Directors, Mr. Jagdish Keswani.
Mr. Keswani is MBA marketing from FMS daily in 1988 and BE Hons.
(Mechanical) from NIT, Kurukshetra. These are strategic planner
implementer with an experience of over 39 years. He has worked in quality
operations, new project management and vendor development functions
with Escorts Yamaha Motorcycles.
Subsequently, he headed the business development function for TVS-
Sundaram Fasteners Ltd. He also established a business operation of a
German MNC at Gurgaon as Managing Director.

Next is, Mrs. Malini Bansal, Mrs. Bansal is a certified associate of Indian
Institute of Bankers and has a master's in education. She's retired as a chief
general manager at IDBI Bank Limited.
Mrs. Bansal worked for over 34 years in project finance, government
banking, stress asset financing and wholesale and retail banking. She
demonstrates a deep understanding of development, financing, banking
principles and practises. She's also an arbitrator's panel of NSE and BSE,
and has handled over 40 arbitration proceedings.

Mr. Shashank is an inspiring leader in the Indian automobile circuit for last
45 years, having graduated as a mechanical engineer.
He has introduced many new models in the auto industry and having
widely interacted with multiple global clients and organisations.
During his career, he's associated with several leading automotive
companies including Tata Motors, Hindustan Motors and Eicher Motors.
He later served as a CEO of Asia Motor Works in Mumbai. Lastly, he held
the position of Executive director at PIAGIO vehicles.

Last but not the least, Brig. Harinderpal Singh Bedi. Brig. Bedi is a Senior
Army Veteran with 10 years of experience as a corporate professional. He
has been associated with some prestigious projects and ventures along with
being a CSR Enthusiast. Brig. Bedi is a Graduate from the Defence Services
Staff College, Wellington and Master of Defence Studies from the Madras
University with distinction along with Masters in Management Studies
from the Osmania University, Secunderabad.

Coming to the financial performance. So, FY 24-25, we clogged the turnover

of 427.29 crores out of which, export turnover was close to 291 crores and
domestic turnover was close to 93 crores. The other operating income was
33.43 crores and other non-operating income was close to about 10 crores.
This is a brief break up of the business share and the product distribution.
So out of the total distribution, the export business contributed about 68%
of the turnover this year and domestic was about 32% out of the total
turnover. We are catering to European customers. Our 56% of our turnover
was towards European customers and 42% was in India and Asia Pacific
region was very miniscule was 2%. Coming to the breakup of segment wise
breakup, so as we have been indicated in the last two years and all so this
year our two-Wheeler segment was about 39%, Commercial vehicles has
grown to 18%. Now passenger car vehicle business is around 14%. But I just
want to clarify here that this passenger car vehicle 14% out of this 9% was
in the EV segment and the next is the recreational vehicles, which is ATV
and RTV, which is about 13%. Then, for closely following is tractor and
agriculture business, which is about 11% and then industrial and other
three-Wheeler businesses 3% & 2%.

Now coming to the quarterly financial performance, Q4- FY24-25, we

clogged at over 106.03 crores as compared to 114.92 crores same quarter last
year, which is a drop of about 7.7% at EBITDA level.
We have been able to clogged almost a similar EBITDA 24.05 crores of
EBITDA in Q4 of FY 2425 as compared to 24.45 crores last year last quarter
which is a drop of about 1.6%, but at the PBT level we clogged up PBT of
8.95 crores in Q4 of 24-25 as compared to 11.53 crores in Q4 of FY 2324,
which is a drop of 16.87%.
Coming to the full year performance. So, YOY FY2425, we clogged our
turnover of 427.29 crores as compared to 423.04 crores. So, which is a
growth of 1%.
We clogged a bit of 93.74 crores as compared to 101.90 crores in FY 2324,
which is a drop of 8.02% and at PBT level, we clogged the PBT of 34.37
crores as compared to 53.74 crores in FY 2324, which is a drop of about 36%.

So, these are the ratios. Basically, current ratio is from 1.09 to 1.05. That
equity has improved a bit from 1.37 to 1.29 interest coverage from 4.31 to
3.18, fixed asset turnover improved significantly from 1.39 to 1.33 total
asset. Two debt is about 2.06 to 2.15. DSCR because of low profitability a bit
from 1.14 to 1.09 and that will be tough on 2.76 to 3.14. We have been able
to generate cash from operations, so that is cash from operations of about
63.96 crores as compared to 26.73 crores in FY 2324, which is a growth of
almost 140%.
Coming to the debt exposure, so as I've been indicated last time, so our total
debt has increased from 281 crores in totality to 294 crores as we had guided
last time. Our long-term debt has come down from 105 crores to 85 crores
and our short-term debt has increased from 176 crores to 209 crores. I just
want to clarify the short-term debt also includes current portion of long-
term debt (CPLTD) of the current year. So, in totality, the total debt has
increased from 281 crores to 294 crores. I want to highlight here that our
total addition to fixed assets in FY 24-25 was close to 54.31 crores, but our
debt has increased by only 4.4% as we have guided earlier, gross margins
71.09% as compared to 71.06% FY 23-24 EBITDA margins. We have clogged
close to 22% as compared to 24% in our FY 23-24. PBT margins of 8.04% as
compared to 12.7% and pad net profit of 5.99% close to 6% as compared to
9.41% of FY 23-24. Return on capital employed from 11.57 to 21.12. So, this
is a brief snapshot of all the ratios for financial year 24-25 as compared to
financial year 23-24.

Coming to the profitability comparison as so this we have been introducing

this slide for last few quarters. So as you can see our profitability EBITA
margins, we have been able to sustain close to 21 to 22% quarter on quarter.
As we have maintained in our last few calls but FY 24-25, we would tell
margins was close to 22% as compared to 24% of FY 23-24.
But if I talk about the breakup broadly, breakup of this from Q4 of Q4 of 23-
24, our raw material consumption, it has reduced by 2.18% because we have
been able to get the benefit of steam price reduction and at a whole year full
year level, the consumption of raw material is almost at a similar level as
we have indicated in our last few calls, our employee benefit expenses,
finance cost and depreciation have increased. The percentages are there as
in line with the projected turnover which we were projecting for FY 24-25.
I want to highlight on the manufacturing expenses side as we have
indicated last time that we have been working on the cost reduction on the
power side and other components of manufacturing expenses. So, from Q4
of 23-24 and if I compare Q4 of 2425, our overall manufacturing expenses
have come down to almost 3% and at a full year level, they are almost at a
similar level, but now from Q4 of 24-25, the reduction will be visible. Our
total administration selling and other expenses have gone up by 22.68% as
compared to Q4 of 23-24 whereas at a full year level they have increased by
1.23%. So that's a breakup of the profitability comparison component.

Coming to the business updates. So, as we have as you all are aware, the
company has done a fundraising through preferential allotment of equity
shares.
So I just want to apprise everyone. So, Company has issued 10,06,480 equity
shares to QIBs and Non- QIB under non-promoter category.
The Company has raised an overall fresh capital of 79.99 crores, which has
been infused in the Company through preferential allotment.
I'm very proud to share that three marquee investors and Investor Group
of India has invested has shown their trust and they have invested in RACL
Geartech. And I just want to apprise everyone that the entire proceeds of
the preferential allotment after meeting the general corporate expenses will
be utilised to reduce both the long term and short-term borrowings of the
Company.
I'll come to the brief profile of investors.
So as most of you will be aware of the first investor who has invested in our
in your company is Malabar India Fund Limited. Malabar India is a $1
billion plus investment fund. They have been investing in small and mid-
sized companies of India since August 2008. Their average holding period
historical has been close to seven years. Malabar has a team of more 14
professional and with over 100 years of combined investment experience,
they have a concentrated portfolio of the companies with high return ratios,
strong cash flows, robust balance sheets and competent management
teams.
Other two investors are India Account Fund Limited and Ashoka India
Equity Investment Trust Plc. Both these funds are part of White Oak Capital
Group. White Oak is an investment management advisory firm established
by Mr Prashant Khemka in June 2017, Mr. Prashant was formally the CIO
of Goldman Sachs Asset Management, India Equity and Global Emerging
Markets equity businesses. White Oak group has operations across India,
Singapore, Mauritius, UK and Switzerland.
White Oak has attracted among the largest portfolio investment inflows
into India. The last three years White Oak collectively entered group
entities. They collectively have assets under management of 8.6 billion U.S.
dollar or 73,630 crores Indian rupees as of March 2025 and their global client
base includes sovereign wealth funds, pension plans and government,
Individual and family offices of through a combination of separately
managed accounts and investment funds.
The third Non QIB investors, Dr. Aniruddha Malpani.
Dr. Aniruddha Malpani is an IVF specialist and the founder of Angel
Investment Fund Malpani Ventures, which invest in early stage start-ups.
Malpani Ventures is a sector agnostic Angel investment firm funding frugal
innovation in India. They partner with founding teams, building great
companies. They fund revenue, making companies to help them scale.
Their portfolio includes education, healthcare, financial inclusion and
software.

Now coming to why we did preferential issue. Rational as we have shared

earlier, that company need to invest a reasonable Capex based on the new
orders, the new big orders which we have received and all and the kind of
RFQs which we are receiving and all the company is required to invest a
reasonable Capex into the company in next few years.
And as I've been, we have been indicating earlier and as guided by a few of
our investors, the company wanted to reduce our dependence on borrowed
funds to achieve the. This reduced dependence on borrowed funds will
help companies to have a stronger balance sheet position for the long-term
sustainable growth. This divestment will also put a sharper focus on the
company to have the discipline capital deployment and value accretive
segments.
 The impact is as I have shared earlier, the entire proceeds of the preferential
allotment have been utilised to reduce both long term and short-term
borrowings of the company after meeting the general corporate expenses.
Now this reduction in debt will help the company to achieve the interest
cost reduction which will help in enhancing the profitability of the
company and which will free up the internal accruals of the company for
the reinvestment into the company and it will also strengthen the debt
profile and improve the credit matrix for your Company.

The way forward, as we have always indicated we want to achieve a long-

term strategy, it will help in achieving a long-term strategic objective. We
have to do the technological upgradation, backward integration and the
planned growth which we have which is there for the projects which are
already nominated by the customers. This will help the Company
inconsistent and sustainable growth with optimal capital deployment and
as indicated earlier, the Company will keep on focusing on product and
segmental diversification.
One more event which is which has occurred with RACL, so the one of the
part of promoter and promoter Group, the Pradeshiya Industrial
Investment Corporation of UP limited (PICUP), they have sold 5 lakh
equity shares in the open market.
So now the revised shareholding pattern post preferential issue and
divestment by PICUP Mr. Gursharan Singh and his affiliated parties. Now
they have shareholding has reduced from 37.36% to 34.16%.
PICUP shareholding has reduced from 13.94% to 8.51%.
So total promoter holding has come down from 51.3% to 42.68% and public
shareholding has increased from 48.7% to 57.32%.
Mr. I will add it over there that PICUP being a state government.
Gursharan investor. So UP government had a policy to promote industries in the state
Singh and by virtue of this, they were investing into the companies and when
companies go stable and companies start having good profitability markets
so they always have a divestment policy. So, PICUP was actually
contemplating to divest their shares for quite some time since now.
Eventually, they decided as per government policy to divest from the
profit-making company because once the projects are stable, so government
mandate is to get out of those industries. So, in a phase manner, they have
decided to divest 1/3rd of that equity held in RACL, initially it was about
13% & now it's about 8%. Thank you.
Mr. Jitender Thanks Sir, So the next thing which we have been discussing in last couple
Jain of calls is the status of KTM business. So, we have an update on the KTM
business though it is there in all the media articles and all. But just wanted
to brief everyone on the same.
So, Bajaj Auto will acquire majority control of Australian KTM AG through
its wholly owned subsidiary Bajaj Auto International Holdings BV.
Now BAIHBA has committed to a total investment of €800 million, which
is about 7765 Crore through a combination of secured term loans,
convertible bonds and shareholders debt. This funding will be used utilised
to stabilise the KTM finances and also will also be replaced to support the
court approved debt restructuring programme in providing the working
capital to KTM. These financial measures will have will help KTM to meet
their core deadline of May 23rd, 2025, by which time the KTM has to repay
30% of the creditor claims.
Now this activation will mark a significant milestone in Bajaj Auto
International strategy and it is expected to support KTM financial recovery
and business operation. The two companies already collaborate under a
joint development programme based in India.
Coming to RACL, we have already started receiving a confirmed delivery
schedule from KTM AG.
After this the production had started at the factory. However, we are still
adopting a precautionary approach till the time the KTM is stabilised fully

Update on the new projects. Project Titan, as we all are aware of that we
have already started the commercial production at a new manufacturing
facility “Udyam”. Just wanted to update everyone that more than 2000 sets
are already dispatched to the customers under 2 phases. These parts are
currently under vehicle validation stage at the customer site and the mass
production as of now is on track to be started in August 2026.

On Project Venus, as we have declared disclosed earlier, this project is for

the supply of drivetrain parts for electrical sports car.
To update on the same, we have more than 100 sets have been dispatched
to the customer under phase 1. Again, these parts are currently under
validation at the customer site and the mass production of this project is
also on track to be started in August 2026.

The third project, which is the new project which is going on right now is
Project Crystal. This project is focused on development and supply of
critical components including ring- gear, sun- gears, drive- gears and
planetary gears, assemblies for electrical power steering systems in the
passenger car segment. This project is to supply steering system tailored to
the requirements of a leading American passenger car OEM for their pick-
up truck platform. As disclosed earlier, the first prototype was to be
 manufactured and offered for assembly and testing in Q2 of QY 2526 from
RACL Gajraula plant. So, just wanted to update everyone that this project
is on track and the samples are in advance prototyping phase right now.
So, these are the updates on all the three new projects which are ongoing
right now.

Mr. So just to add over here, you know as this project Titan and Venus, this is
Gursharan already known to all our friends there for BMW. Project Crystal since it is
Singh still not disclosed so but it is one of the big companies. This is a kind of
diversification program because this project crystal is for staring
components.
So technically it is again fuel agnostic, but is a fuel rather, it is a EV or hybrid
or hydrogen or anything stirring will remain more or less the same.
So it really gives us a very significant progress towards our diversification
program. So, this is also a very key milestone in our sales future growth
project. Thank you
Mr. Jitender On the awards and recognition. I'm happy to share that your company got
Jain an award by EEPC India doing a northern region 52nd and 53rd Export
Excellence Award. We have been recognized as the start performer.
In automobile component product group under Northern Region Export
excellence category. We are proud to share that this award was presented
to us by Honourable Chief Minister of Delhi Srimati Rekha Gupta.
This ceremony was for the grace by Dr. Philip Ackerman, German
Ambassador to India and Bhutan and Sri Vimal Anand, Joint Secretary,
Department of Commerce, Ministry of Commerce and Industry,
Government of India. This recognition is again a testament to our
performance and excellent in export segment.

Another milestone for your Company is that we conducted a Bhumi Pujan

for our new manufacturing facility at Gajraula at on April 30th, 2025.
This again marks a significant milestone in our growth journey, reflects our
commitment to expanding our production capabilities. This facility is being
developed as a part of our strategic initiative to enhance manufacturing
capacity in anticipation of the future business projects and to better serve
our domestic and international markets. This expansion will also enable
RACL to meet increasing demands, support new product lines and further
strengthen our position in the automotive component industry.
 Thank you everyone and We will now begin with the question answer
session.
Ms. Neha So, you can unmute and ask questions Mr. Parikshit Gujrati.
Bahal
Mr. Parikshit Thank you so much for giving the chance, Sir. So, I so I had a few questions.
Gujrati So my first questions is about KTM. So, Bajaj has acquired KTM. So, they
will source gears which we are supplying to KTM. So, won't KTM source
from Bajaj only or they will still source from us.
Mr. Parikshit, I will answer you first of all, Bajaj was already owning 49% of
Gursharan KTM. It's not that Bajaj is a new totally new entrant, Bajaj was holding KTM
Singh 49 equity for last 20 years. So even then, we were all supplier to KTM and
this Bajaj has come to rescue. Technically, Bajaj has ensured further funds
to make the company strong but you know taking all the company in a
different way and doing business with different things, so that is not an
issue at all.
Mr. Parikshit Thank you so much for my second question is circulating. A few days ago,
Gujrati we read that Trump is planning a 50% tariff on European countries and
our major customer is us only. So, if 50% tariffs are implemented, so there
won't be demand scenario be affect from our point of view.
Mr. Probably you also read that state all that tariff drama going on in the US, so
Gursharan eventually as of today everything is put on hold. So, and if anything is
Singh happening, it's not going to happen only for RACL. It is going to happen
for the entire globe. But lately these kinds of things are more of political in
nature, they are not having any real impact on the day-to-day business
scenarios. Okay and I said you know, as of today, this decision is already
have been put on hold by the US courts.
Mr. Parikshit Thank you so much, Sir. So, Sir, I had just one last question. So, the tractor
Gujrati volume this year gone for Q4FY25 have been 7%. So how are you seeing
the demand on the tractor side?
Mr. You know you are right. The tractor volumes are quite good in Q4 and India
Gursharan has this time record kharif crop. So eventually demand should remain
Singh stable and it should grow, and eventually we'll also benefited because one
of our major customers is Escorts Kubota, so they're showing good forecast
and we're having our second major customer. So, they're also showing good
forecast. Yes, things are looking good for the agriculture market. It's not
only in India, even in European market agriculture, product is showing
signs of recovery.
Mr. Parikshit Thank you so much and so just one last question. So, you in previous calls
Gujrati you said that we are confident of achieving 1000 core revenue in 3-4 years’
time. So, can you tell me the vision or the path which you see forward to
achieving that figure?
Mr. So, you yourself have answered your question. So, we already said that we
Gursharan have a vision to achieve 1000 crores run over in 3-4 years’ time. So that we
Singh can say that the vision is already there and now only thing is the road map
 has to be there and yes, road map is there. We've already explained in the
presentation our CFO has explained to you we have alternate new
diversification programs and additional new customer guests.
So we are working the right way to ensure that whatever the vision is there,
that road map is also drawn according.
Mr. Parikshit All right. Thank you so much, Sir.
Gujrati
Mr. Jitender Thanks Mr. Parikshit. Mr. Devachandra Ramani. So, we are unmuting you.
Jain Mr. Ramani.
Mr. Yeah. Thanks for the opportunity. My first question is on our Q4 sales
Devchandra numbers. So, if I'm looking at revenue from operations for standalone
Ramani operations that decline by 11 percentage points, revenue decline by 18%.
Firstly, you can you throw some lights on that? Why consolidated sales
decline by 18? Is it primarily because of KTM only or we had a slowdown
from rest of the counts as well and the second is why there is discrepancy
between our standalone sales and consolidated sales. So with regards to
that, I would like to understand regarding the kind of inventory build-up
which we have done at our warehouses in Europe and what is the rationale
behind that?
Mr. The only difference is KTM because from our Austrian company, we make
Gursharan local sales only to KTM. So eventually, as compared last year fourth quarter,
Singh there was a decline, so eventually since standalone Austrian entity was
declined. So eventually it will have a decline on the consolidated sale also.
So, it's primarily because of KTM.
Mr. Okay and just to confirm from European warehouses, we are just supplying
Devchandra to KTM only or we are serving other clients as well?
Ramani
Mr. From our own company operated warehouse, we are serving only to KTM.
Gursharan Thank you, Mr. Ramani.
Singh
Mr. I had another question as well. So, during the last quarter, we gave a
Devchandra guidance for FY26. That our revenue will be 500 to 525 crores just to confirm
Ramani on that, are we still maintaining that guidance and if we are maintaining,
can you split the growth segment twice as well? What kind of outlook we
are seeing within two Wheelers recreational vehicles, ATV series and
tractors.
Mr. Prabh As you know, we have closed around 420 crores. So we are targeting to still
Mehar Singh target 500-525 +/- 5% was the estimate which we give how it will be
achieved. We are getting good signals from the commercial truck segment.
That is something which will grow as compared to last year as you also see
the domestic business this year split was 68 to 32, which usually hovers
around 75 to 25. So that means from domestic market as well, some of our
old horses are showing good signs of growth and there are some new
platforms which we of course disclosed in the earlier call. There is going to
 be some huge prototyping from that and that will account for. It's got these
areas 2-Wheeler market in general, since you know it starts from Diwali
quarter onwards. So those as of now customers projections are intact plus
how the projections deliver when the quarter comes closer is to be seen as
per their sales segments. Since a lot of this estimations are passed on from
us from our customers, so as of now our end customers, whosoever have
projected our honouring, some of them are showing growth in the domestic
and exports both, but during the course of the year, how this pans out will
depend a lot on customer, their own performances as well.
Mr. One last question from my side and next year as well, we are assuming
Devchandra similar split between exports and domestic or that will be changing in
Ramani favour of exports. And we are planning to fund capex by debt.
Mr. Jitender Yeah. So, the currently the plan is so as we have said that this our closing
Jain date of 31st March 25 was close to 300 crores. The preferential money except
for general corporate expenses have been utilized to reduce both long term
and short-term debt. The Capex plan as of now still finalizing it but capex
plan as of now is close to about 45-50 crores for the current financial year
and as of now plan is to fund it 75% by Debt and 25% by the company’s
equity. So accordingly, you can calculate the debt figure.
Mr. Alright, great. Thank you. Thank you for answering my questions.
Devchandra
Ramani
Ms. Neha Thank You. Mr. Preet, we have unmuted you.
Bahal
Mr. Preet Hello. Am I audible?
Pitani
Mr. Jitender Yes
Jain
Mr. Preet Yeah, Sir, I will like to know about the entire journey from business point
Pitani of view. What has changed? Which has shifted your margin earlier which
used to be thirteen to 15%, which has now grown in the line of 20 to 25%.
And is there any further scope of improvement and if there is what would
be the major drivers which would be driving this growth and margin
improvement.

Mr. Prabh This question was maybe asked by somebody else. If you go to the call
Mehar Singh recordings exact answer was there and we explained very diligently why
the profiles changed, why the margins increased. If there's anything which
is unclear, we can always re-answer, but the entire recordings are always
available in the public domain.
Mr. Preet Okay can just tell me when it was, it was in the previous call?
Pitani
Mr. Prabh Maybe last quarter or last to last quarter.
Mehar Singh
Mr. Preet Okay.
Pitani
Mr. You know, first of all, Margins is not significantly change. You know,
Gursharan they're always raised more, even if it's margins. We always say rage model
Singh 20-25% so early was 24% margins, 22%. Nothing can be very straight line,
so some minor changes there are. There are always there, so nothing has
gone up really low. Nothing has gone abnormally high. So, we always
maintain our initial call recordings and initial the schedules that margins
will generally remain for 25%. So last year was 22%. Before that was 24%,
so one or 2% error there and you know last year was generally very flattish
kind of revenue was there. So that was the reason. But despite of all thing,
we have still been able to maintain 22% margin, which is a very healthy
margin and given the overall business scenario.
Mr. Preet Okay, got it, Sir. My next question would be if you could just brief about
Pitani the current capacity utilization and your peak capacity utilization means
how much revenue you can maximum top line you can do from the current
capacity.
Mr. Good question. Definitely. It's the food part for everybody. But yes, you
Gursharan know what happens. We have always maintained that this company, our
Singh business model is we always work with premium market segment, so
eventually many of the products are seasonal in demand.
Many of the products are having some geographic. Yes, but if everything is
really going in a very optimistic way with our current capacity is definitely
the plan which we have given 500-525 crores for this year. This is definitely
being done from out of our existing capacity and we always have about 5
to 10% additional cushion for taking care of seasonal events. So now it all
really depends if all those seasonal demands or those short-term peaks in
the remarks, they really get together. So, this 10-15% cushion which we
keep it that always can be in cash, but otherwise the current our range one
numbers for this year what we have planned, the capacities are already
aligned as per that. What are the investments we are making this year, they
are for the future years nothing, we are investing in the current year's
production capacity. so, you can understand what kind of capacity
utilization we are having and what kind of portion will always keep for
some future products and taking care of some seasonal variations and all.
Mr. Preet Okay got it and in follow up for the same question like you have been
Pitani maintaining guidance of 1000 crores in next three to four years and you told
that you have a capacity extra buffer capacity of 10 to 15%. So how much
more capital you have to raise for the same in the next three to four years?
What will be the ideal capex you will be requiring to reach 1000 crores over
the period of time?
Mr. Today we have already answered these questions earlier. Also, we were
Gursharan already said that about 150 crores are investing this year. We already have
Singh given in our earlier Calls also that for taking care of us at this next year's
 Capex, we need around 150 crores of Capex required, which will take care
of our growth study but you know, it all depends on year to year basis.
One cannot really drought very close Capex number or sales numbers
because today's world is very volatile. Sometimes it looks oh, everything is
going 25% plus, and next day it feels no, it's not going to happen that.
But yes, we already made this general forecast in the previous discussions
also and our road map is say by 2029-30. Not all depends in coming years,
what kind of products come to us, what kind of demands are there?
So eventually, Capex will be planned on the year to year basis.
Mr. Preet Yeah, got it. Next question is on line of order book.
Pitani
Mr. Jitender Please restrict your questions to two to three because there's a lot of other
Jain are waiting. So, I think if there is anything you can send to our send to us
an e-mail and we'll respond.
Mr. Now, since you already started saying so you can ask one, but we should
Gursharan always say that there are two questions per investor. Okay, so you can still
Singh ask.
Mr. Preet Sure. So, I would like to ask on the order book what would be your total
Pitani order book and its execution period and if you could give the breakup
component or the industry wise.
Mr. Conversion documents normally order book for the lifetime whenever
Gursharan disclose to our you know, these are very continual numbers. And secondly,
Singh these order books are generally a kind of forecast. So they are non-binding
forecasts given by the customer and we as a company never disclose these
audit books for the project type. One thing is very clear that wherever we
are working we always working for that complete project and work as a
single source for the project. But disclosing the order books, we don't feel
that this reflects the true picture. Many times, this order books are just given
as two optimistic numbers. You know, when Ola started a company, he
says, he will start producing 1,000,000 scooters from day one and imagine
if the suppliers say, oh, I have the order book of 1,000,000 and Ola is not
producing over 30,000. So then definitely that becomes unused. So that's the
reason company has a policy. RACL has a policy that we never disclose
order books for the next five years, 10 years. We always work on year to
year-based plans and arrange one forecast for next three to five years.
Mr. Preet Yeah. Thank you for taking my question. I'll join back in the queue.
Pitani
Ms. Neha Thank you, Mr. Preet. Mr. Saket Kapoor, we have unmuted you.
Bahal
Mr. Saket Yes, Sir. Firstly, when we are looking at your standalone and the control
Kapoor number on a consolidated basis, the revenue is lower at 87 from revenue
from operations. So, what gets knocked out in the consolidated part? That
the revenue is on the lower side? And second question was that there were
some factors I think so there was some cutting machine, there was some
 cancellation of orders and then there was some inventory pile up for the
previous year for the previous financial year due to which our revenues
were flat and also, we have incurred some expenses on account of that. So,
are we over with all those issues pertaining to the last financial year?
Mr. It is a reputational question. We already explained a few minutes back that
Gursharan in consolidated and this inventory pile up was only because of KTM fiasco.
Singh You know KTM stock production from October. So, from October till March
our sales were almost 0 whereas our stocks at warehouse was there and we
had lot of WFP’s. Also, whatever CFO already explained to you that already
started receiving the orders. But we're taking a very, very cautious view on
next six months to one-year, which way KTM really takes the kickstart
again, but keeping in view Bajaj infusing almost 8000 crores. So, we are
keeping a very positive view. But while planning, we are working very
cautiously. But yes, you are right, this inventory piles up generally because
of KTM. So, we have already explained in detail. It's already out.
Mr. Saket And you are experiencing that at this inventory will get liquidated as and
Kapoor when things come to normal from the KTM side?
Mr. Yeah, yeah, it's a period of time & will get liquidated. We already started
Gursharan getting form orders, but only thing is KTM is restarting full production with
Singh a proper plan somewhere after summer vacations where we end up July or
first week August we have started getting the confirm orders, but the exact
numbers will be reflected in coming time, you know. You're going to also
understand. A company which is lying dead for the last six months and not
producing anything and suddenly we can't expect that it starts producing
with full blast that they have to also manage. All the supply chain, because
once supply chain disruptions are there. So, it's not that only RACL
suppliers, they may be having other suppliers also across the board. So,
they have to realign all their strategies. So, it will take some time. But yes,
the over a period of time everything will get back to normal.
Mr. Saket Just two, just to conclude on this KTM part, what was the contribution from
Kapoor KTM for FY 24, Sir, in terms of the revenue pie, how much have they
contributed to our sales?
Mr. Normally it was always 14-15% this year, although 6- 7% is saying FY 24.
Gursharan which we already lost six months, this is all to 8%. So, you can say what
Singh 12% of our revenue to be very honest, we closed our figure at 427 crores if
this KTM fiasco would have not occurred. We would have been in 500
crores company, so you can really make a calculate that this much revenue
company lost because of KTM fiasco for six months of non-production.
Mr. Saket My second question would be so then on the basis of this 500-525 crore
Kapoor revenue we are considering the contribution from KTM. Again, back to that
15-16% at least volume growth. So, this this number of 520 is excluding
KTM contribution and whatever we will receive that will be a buffer for us.
Mr. Jitender Not excluding fully, but taking some conservative views because it's not
Jain zero, but it's not 16% out. We're taking it very conservative view and If that
 really that's what conservative view for which we've already got confirm
orders from that they have to also restart and if anything, so eventually it
will be gains. But so far, we are also taking very, very precautionary
approach.
Mr. Saket OK, Sir. Sir, I will join the queue for other questions or I will mail later on.
Kapoor Thank you, Sir and all the best.
Ms. Neha Okay Thank you. Thank you. Mr. Ujjwal, we have unmuted you.
Bahal
Mr. Ujjwal So, my first question is on the KTM side only, just extending from the
Kumar previous participant. So, I just want to confirm this that if given that the
situation with KTM is stabilizing, if they're going to full blown production
in this year, then whatever numbers, additional numbers that we get from
that would be over and above these 525 crores, am I correct?
Mr. Mr. Ujjwal, we already explained that KTM were taken some conservative
Gursharan view while deciding this figure out 500 to 525 crores. Now as of today, I
Singh cannot make any forecast but which way the KTM has to go but yes,
whatever numbers we have taken for KTM, we are very sure that at least
those numbers will get richer. Now, if anything comes more than that,
definitely we will really see, if it really comes to our advantage.
Mr. Ujwal Got it Sir. So, I am asking whether since we are having higher margin
Kumar prototyping revenue coming in in FY 26, so can we expect that the margins
would remain towards the higher range of you know 20 to 25% that you
normally?
Mr. You are wishes are always with us and we'll always strive for getting more,
Gursharan more and more better margins. Yes, we all are working for the same, but
Singh eventually you know the beginning of the year. So, we can't really predict
which way the market will have to go but yes, definitely as we explained
that we are keeping very optimistic view and since we have already raised
some fresh funds, we have already paid the Long-term debt, short term
debt to the banks. Eventually our finance costs will go down. So, all these
things are showing very positive outcome and in prototyping and all some
projects there are there keeps coming. So definitely we are keeping a very
optimistic view to improve. But your wishes and support is always
required to maintain the high margins, yes.
Mr. Ujwal Sure Sir. Thanks. Just one last question. What can we expect the interest cost
Kumar for FY26?
Mr. Jitender So, it was around 7% in FY 24-25. We are expecting an improvement by at
jain least one 1, 1.5%.
Mr. Ujwal So basically, can you quantify like it was 30 crores in 2025, so.
Kumar
Mr. Jitender So, about that we are expecting a saving of one or one and a half percent.
Jain
Mr. Ujwal Got it Okay. Thank you. Thank you.
Kumar
Ms. Neha Thank you, Mr. Ujwal. Mr. Pratik Jain, you can ask your question.
Bahal
Mr. Pratik Yes. Am I audible?
Jain
Mr. Jitender Yes
Jain
Mr. PratikThanks. Thanks for the opportunity. So my first question is, if I look at your
Jain working capital days obviously for sale reasons, they have been stretched
now to around 221 days. You had earlier indicated that over time, you know
you will like to normalize it to 160 days. Can you help me understand with
current scenario where do you see this working capital?
Let's settle in the medium term. And do you still feel that we can achieve
this 160-day target?
Mr. Prabh How do you calculate this 221? I think it's not 221.
Mehar Singh
Mr. Pratik Calculated as a percentage of sales overall.
Jain
Mr. Prabh That's incorrect. So, we have to also consider any other 160 days so.
Mehar Singh
Mr. Jitender As you may have, as we have explained earlier, you know so as per our
Jain calculation based on the turnover days data and inventory days based on
turnover and the working capital cycle is coming to around 160 days now
the data is and inventory days have gone up a bit in FY 2024-25 data days
have gone up obviously because you know the turnover which RACL India
has done to GmbH now the payments had not come on time from GmbH.
So that was one reason.

Secondly, over the last two years, the shipment period overall after the Red
Sea crisis and all has gone up earlier, the shipment period to Europe used
to be about 60 days. Now it is about 70-72 days. So about 10-12 days of
overall shipment period has increased, so that will remain. But then and
that slowdown of which was there in Europe and all so because of which
from the warehouses, the pickup of the material was slightly delayed. So,
these were the three main reasons for increase in debtor days from FY 23-
24 to 24-25, now out of which that 10 days, 10-11 days of shipment period
increase that will that's a global phenomenon that will remain. The payment
has already been done to RACL India and then, apart from that pick up
from all the European customers, have increased & have improved. So, data
days have already started showing improvement trend there. So that is
there and secondly on the inventory days part and all, basically we had, if
you look at the breakup of the inventory and all one of the components for
our inventory is loose tools and fixtures which have to be procured at the
beginning of the year based on the based on the forecast for the year since
the forecast for the last year was close to 500 crores.
 So, the tools and all were already procured and all but, but because of which
the but then unfortunately because of the KTM fiasco and all that overall
turnover could not be achieved. So that because of that part, only the
inventory days have gone up, but now the turnovers have already started
picking up and all with the current projections, which we are having and
all the inventory days will also fall in place.
Mr. Pratik Thanks. Thanks for so for this detailed answer. So just to confirm if you can
Jain get me help me triangulate my numbers? What inventory days as of FY25?
Mr. Jitender Could you drop me a mail? I'll answer you on that. I think for the benefit of
Jain everyone. I think all calculations and all we can discuss on it, Okay.
Mr. Pratik Got it, got it. I will take this offline. Thanks.
Jain
Ms. Neha Thank you. Pratik. Mr. Kothari Mr. Pratik Kothari. Can you unmute
Bahal yourself please?
Mr. Jitender He has written question in Q&A Box. I’ll read the question. Pratik Kothari
Jain has asked exclusive of KTM anything else that was below our expectations
this year our and scaling up, yeah. First of all, I'm glad to share that MAN
has given us very good forecast as compared to FY25. In fact, in FY25, MAN
had produced because they always work calendar year, but they produce
53,000 trucks this year. They're targeted 65,000 trucks, so this really shows
almost 20% of increase as compared to last year and this increase in demand
is already reflecting in our pickup and our further columns. Yes, that is still
some models they are doing very good. But in some models, they are still
catching up and I feel it will take where do wait for it to get real picture,
particularly for their American market things are still not too optimal, I
hope I have been able to clarify.
Ms. Neha If there are any other questions from anyone, You can drop us an e-mail
Bahal and we will respond on the same. I would now request CMD Sir to say
ending remarks.
Mr. Oh, thank you. First of all, as I said in my opening comments that we really
Gursharan always feel thrilled to interact with you guys, you it really gives us lots and
Singh lots of insight and for the investor call. So, it really shows that there is a lot
of enthusiasm towards this Concall and we really look forward for your
valued contribution and ask as much questions as possible so that it keeps
us all of us on our toes and it really keeps us motivated and inspired to put
up our efforts to perform continually in a more and better way. So, thank
you once again to all of you for joining this call and we keep interacting
Anybody has any queries in between, you're always welcome to approach
us. We're always open for more and more interaction with you, so wish you
all the best once again and thank you for joining this call.
Ms. Neha Thank you, everyone. On behalf of the management, I would like to
Bahal sincerely thank all the participants for joining and engaging with us today.
Your participation is greatly appreciated. I would also like to extend a
special thanks to the management team for their thorough and patient
 responses to all the questions raised during the session. Thank you
everyone.

Notes:
1. This transcript has been edited for readability and does not purport to be a verbatim record
of the proceedings
2. Figures have been rounded off for convenience and ease of reference.
3. No part of this publication may be reproduced or transmitted in any form or by any means
without the prior written consent of RACL Geartech Limited.

Digitally signed by Neha Bahal

Neha Bahal DN: cn=Neha Bahal, c=IN, st=Delhi, o=Personal,

title=8911,
serialNumber=1070600d51cfb7a3e7f9237b77ab
72982622bba45fb9e3376de0904c6246d099
Date: 2025.06.12 [Link] +05'30'