RACL Geartech Limited — PPTs, 06-06-2025: Investor Presentation

1. Financial Highlights:

RACL Geartech reported total revenue of INR 427.29 Cr for FY 24-25, with Q4 revenue at INR 96.31 Cr. EBITDA margin stayed steady around 22%, while profit before tax fell to 8.04% from 12.79% due to higher finance and depreciation costs. Gross margin remained healthy at ~71%. Cash from operations surged 139% YoY, aiding debt management despite a 4.4% rise in total debt to INR 294 Cr. Liquidity is stable with a current ratio near 1.05 and debt-to-equity at 1.29.

2. Strategic Initiatives & Growth Drivers:

Commercial production started at the new “Udyam” facility, aiming for volume ramp-up by August 2026. Key projects include drivetrain components for an electric sportscar (Project Titan) and propulsion systems for electric power steering (Project Venus), progressing well with prototype validation. Planned CAPEX supports product diversification and technology upgrades.

3. Business Developments:

RACL raised Rs. 79.99 Cr through preferential allotment from investors like White Oak Capital and Malpani Ventures to focus on deleveraging long- and short-term borrowings. Ongoing engagement with KTM AG continues carefully as KTM stabilizes post-Bajaj Auto acquisition.

4. Market Position & Competitive Advantage:

With 900+ SKUs serving 22 customers across two-wheelers, passenger cars, CVs, and agri equipment, exports constitute 56% of revenue, mainly from Europe. Strong precision machining and gear cutting capabilities, backed by ISO certifications and an 800+ employee base, provide a clear manufacturing edge and global reach.

5. Investor Implications:

Debt reduction through fresh capital improves financial flexibility, supporting margin expansion and cash flow strength. New EV-related products and capacity additions offer positive growth potential aligned with market trends. Execution risk around new projects and KTM exposure exists but overall outlook points to steady long-term expansion.