Rashi Peripherals Limited — Investor Meet, 17-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Rashi Peripherals Limited delivered solid financial results, with total income for the nine months of FY25 rising 33.5% year-over-year to ₹1,07,996 Cr. For Q3 FY25, total income reached ₹28,263 Cr, reflecting a 7.7% increase year-over-year. EBITDA for this quarter was reported at ₹699 Cr, a 2.3% year-over-year growth, while PAT surged by 29.4% to ₹321 Cr. Year-to-date, PAT increased 62%, highlighting strong profitability.

**Future Outlook and Growth Drivers:** Management emphasized optimism for 2025, spurred by advances in artificial intelligence and a favorable government push for digitalization and electronics manufacturing. The focus will remain on expanding further into tier two and tier three cities where demand is growing.

**Order Book and Operational Updates:** The company continues to strengthen its position with 721 towns serviced and over 10,700 customers, marking an increase from previous levels. Management initiated distribution of HP commercial printers, filling a product gap and broadening their ICT offerings.

**Analyst Q&A Insights:**

- **Revenue and Profitability:** Analysts noted a Q3 growth slowdown compared to previous quarters; management attributed this to seasonal factors but confirmed overall 33% Y-o-Y growth.

- **Market Position:** Despite a challenging market landscape, Rashi is well-positioned to capitalize on AI and data center opportunities, having executed smaller orders and anticipating large government AI tenders.

- **Operational Challenges:** The company reported increased working capital days, largely due to slower collections rather than inventory buildup.

- **Capex and Capital Allocation:** Management refrained from offering specific capex guidance but emphasized the capital-light nature of their distribution business.

- **Strategic Priorities:** Long-term goals include leveraging growth opportunities within the AI sector and continuing efforts in the embedded solutions space.

**Market or Regulatory Updates:** The government’s initiatives in electronic manufacturing and support for domestic production are identified as favorable for Rashi's growth strategy.

**Strategic Focus Areas:** A clear focus was noted on expanding their core business, enhancing distribution capabilities, and sustainability efforts through e-waste collection initiatives.

**Investor Insight:** The financial health and growth prospects point towards a 'buy' outlook, with robust year-over-year growth and a positive strategic trajectory, supported by government initiatives in electronics and IT.