Rishabh Instruments Limited — Investor Meet, 12-02-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Rishabh Instruments reported consolidated revenue of ₹1,812 million for Q3 FY '25, reflecting a 13.7% year-on-year growth. For the nine months ended December 31, 2024, revenue was ₹5,329 million, up 4.1%. Adjusted EBITDA for Q3 improved significantly, reaching ₹172 million, up by 70.9% YoY, with the margin at 9.5%. However, nine-month EBITDA stood at ₹418 million, down 43.6% YoY. Profit before tax was ₹109 million for Q3, and ₹211 million over the nine months.

**Future Outlook and Growth Drivers:** Management expressed optimism about the Alucast business, aiming for breakeven at the EBITDA level in the next couple of quarters. Strong growth in the electronics division was noted, fueled by industrial automation and clean energy shifts. New product launches in the solar inverter sector are also anticipated, targeting alignment with government schemes.

**Order Book and Operational Updates:** The order book reflects ongoing contracts, primarily in the electrical sector, with timelines between 2-4 weeks for execution. Renegotiated contracts in the automotive sector aim for better margins and reduced losses, despite a focus shift towards non-automotive orders.

**Analyst Q&A Insights:** Analysts inquired about revenue sustainability and operational challenges. Management affirmed a stable growth trajectory in the electronics business, projecting healthy margins. Discussions highlighted the impact of European market dynamics on profitability in the automotive sector. Management showed confidence in risk management strategies and adapting operational flexibilities.

**Market or Regulatory Updates:** The call touched on broader market challenges, particularly in the European automotive sector affected by rapid shifts towards electric vehicles and supply chain pressures, which may impact pricing and contract terms in the near term.

**Strategic Focus Areas:** Emphasis was placed on a balanced portfolio strategy, with an intentional reduction of automotive dependency and increased focus on non-automotive clients. Management aims to return to double-digit EBITDA margins for the Alucast segment while sustaining growth in electronics.

**Investor Insight:** The company's recovery and strategic positioning reflect a potential for increased shareholder value. Observations on operational efficiencies and focus on high-margin segments suggest a favorable outlook, aligning with a 'buy' stance for investors keen on growth opportunities amidst ongoing sector challenges.