Harsha Engineers International Limited — PPTs, 08-05-2025: Investor Presentation

1. Financial Highlights:

Harsha Engineers reported consolidated revenue of ₹377 Cr in Q4, steady sequentially and YoY. Adjusted EBITDA increased 6.4% QoQ and 16.2% YoY to ₹66 Cr, though margin compressed to 5.0% due to ₹27.7 Cr impairment. Adjusted PAT rose 9.6% QoQ and 19% YoY to ₹39.8 Cr, with margin at -0.6% including impairments, healthier when excluded. India engineering revenue grew 4.5% YoY to ₹250.4 Cr, with double-digit EBITDA and PAT growth. Solar segment revenues declined from project completions, but margins improved despite bad debt provisions. Harsha China turned positive with ₹12 Cr EBITDA and ₹2.9 Cr PAT, partly offsetting Romanian losses. FY25 capex stood at ₹209 Cr, with ₹165 Cr planned for FY26.

2. Strategic Initiatives & Growth Drivers:

Bhayla Greenfield facility is near commissioning, augmenting capacity. New Product Development surged with ~450 SKUs added in FY25. Focus remains on strengthening leadership in bearing cages and expanding EV segment presence. Efficiency and tech leadership pursued via automation and innovation. Capex targets capacity growth and modernization.

3. Business Developments:

Bronze bushing sales jumped to ₹102 Cr from ₹40 Cr, surpassing targets; stamping components sales grew to ₹54 Cr. Japanese customer and large bearing cage sales stayed flat, expected to recover next year. Harsha China’s gains offset Romanian segment drag. Solar division’s revenue dipped but margins improved post provisioning.

4. Market Position & Competitive Advantage:

India’s largest precision bearing cage maker with ~6.5% global organized market share, strong relationships with top six global bearing players. Edge from tooling design, in-house automation, and extensive product innovation supports quality and scale across 25+ countries. Diversified products and technological expertise bolster competitiveness.

5. Investor Implications:

Growth potential looks strong, backed by capacity expansion, innovation, and EV market penetration. Flat revenues alongside margin improvements in engineering signal resilience; China turnaround adds geographic diversification. Key risks include solar and Romania segment performance and sustaining margin recovery post exceptional charges. Robust capex supports volume and efficiency gains medium term.