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Ladies and gentlemen, good day, and welcome to the earnings conference call hosted by Craftsman Automation Limited. [Operator Instructions] Please note that this conference is being recorded.
I now hand the conference over to Mr. Srinivasan Ravi, Chairman and Managing Director of Craftsman Automation Limited. Thank you, and over to you, Mr. Ravi.
Good afternoon, everybody, and welcome to the earnings call for FY '25. And I hope you had time to look into the PowerPoint presentation, which has been put on the websites and also on the Stock Exchanges so that it will make it easy for the Q&A. So straight away, we can start with the Q&A as what I would propose. But meantime, let me give one headlines while you prepare your Q&A is that the guidance given last year -- last quarter during the earnings call of FY '26 for the first time we have given INR 7,000 crores top line and INR 1,100 crores EBITDA levels and a wide range of say, INR 500 crores to INR 700 crores EBIT, the INR 500 crores to INR 700 crores EBIT, we have already reached INR 512 crores EBIT in the current year itself. So we are expecting in the region of INR 650 crores to INR 700 crores EBIT going forward in the next financial year because the depreciation will be around INR 450 crores. So the guidance remains intact in spite of whatever is happening in the geopolitical situation and the tariffs. So we are quite insulated and we are ramping up quite well to sustain whatever the numbers we have given.
So I will -- we'll go to the Q&A directly. Yes, please. Thank you.
[Operator Instructions] The first question is from the line of Mukesh (sic) [ Mumuksh ] from Anand Rathi Institutional Equities.
Yes. Mumuksh here from Anand Rathi. Sir, firstly, just if you can help us on the few data points for the quarter, what was the 2-wheeler alloy wheel revenues and EBIT? And also similar for the Sunbeam Q4 EBIT and EBITDA?
See, the alloy wheel is around INR 40 crores, in the region of close to INR 40 crores for Q4, and we were EBITDA neutral and EBIT negative of around INR 5 crores for alloy wheel. And this is the only one quarter -- one more quarter, we may be giving the breakup on the alloy wheel. Once we are on the green side, I think we will not give a breakup for strategic reasons. But yes, the operational breakeven has happened with a INR 40 crores -- almost a INR 40 crores revenue. And Sunbeam revenue is for Q4 around INR 300 crores -- around INR 300 crores is the revenue.
And EBIT, EBITDA, sir?
No, that is a onetime, some subjects are there, which is leading to given a INR 23 crores EBIT -- EBITDA. Yes.
INR 23 crores EBITDA positive, right, sir, for the quarter?
Yes.
Got it, sir. And sir, good to see the improvement in the stand-alone margin. Sir, can you help us understand, particular Powertrain segment, we have seen the improvement this quarter. What led to the improvement there? And also, can you update how is the Kothavadi plant order book is shaping up for the heavy engines? And for the FY '26 and '27, how do you see the revenue trends there?
Powertrain in the beginning, I think on the -- except the last quarter, I think for the last maybe almost 18 months, we went through quite a modernization program, repair and maintenance, which was hitting the expenses, I would say. That is one thing. Second thing, the operating leverage was quite less. Capacity utilization was quite less across the old lines. New lines also were not ramping up. The customers were slow. So now overall slight improvement in the operating leverage has happened that is helping us totally. There has been from the multinational companies who set up plants in India, they have started to produce with a 1 or 2 years delay, I would say. And there is a slight revival in the farm sector and a slight revival in the commercial vehicle sector.
And whatever is the Daimler downside we had experiencing in the many quarters, it has more or less stabilized now, so there's nothing more. And whatever we are able to utilize the plant slightly better and optimize our cost. This will be -- these margins will be sustained or improved depending on the quarter of the next financial year. But for the full financial year, we can expect a better result on the Powertrain even when compared to accumulative result compared to the Q4 result.
So that is the -- the margins will creep up just like the period before we did this massive correction on the Powertrain. So any questions on the Powertrain, on the fundamental Powertrain business, then I will come to the new Powertrain business.
Yes. This is fine, sir. You can go ahead for the new business.
So the new business now, our motive or whatever is the strategy behind the Powertrain business was we were so heavily dependent on commercial vehicle earlier to a very reasonable extent on farm sector and also construction equipment. And that was the reason and a little on the passenger vehicle segment. So all that continues to be the mainstay, but now our growth is going to come from not only revival of these segments, but also from the station engine side. We expect the first revenues to come in, in FY '27, not in '26. '26, it will be there. The order book is filling up, but the development cycle time is around 18 to 24 months. So we will not see any -- even any 3-digit revenue. The 3-digit revenue only will come in FY '27 on the new Powertrain business. But as I mentioned, I think it will peak in 2029, 2030 for a $100 million revenue for this business. So for that, the Phase 1 of Kothavadi plant is ready, and it has become operational in Q1.
So we'll see some revenue generated from this plant. And the machine shop for machining the large engine blocks are also ready and already trials are going on for various customers. Orders are in place. So you may appreciate these are very few companies in the world are doing this as a Tier 1 supplier. The OEMs are normally manufacturing them in-house. And I would say, less than 10 suppliers across the globe, including China, are there for this sort of activity. And there was a limited capacity. So we have global capability and global capacity now after the acquisition of Fronberg foundry. And in Europe also, there are only -- on the foundry side also, there are less than half a dozen foundries who are operational for these large engine blocks and 2 or 3 in the North American region and 2 or 3 in Chinese -- in China. So we are an exclusive league in the foundry outside the OEMs themselves.
As I mentioned, the OEMs themselves are also running their own foundries and the machining. And now because of the massive increase in demand for the data centers, backup power and mainstream power also is being used by these generators. The order books for these companies are quite full for the next 3, 4 years. So we will see significant growth, and that is also prompting the outsourcing. But whatever said and done, the gestation period is very long. We started preparing in 2020 for this project, and we made it public only in the annual report last year. And now with the order book full, I'm confident about this INR 800 crores revenue coming in '29 or 2030.
Got it, sir. Just if I ask one last question, sir. You mentioned in past the margin for this segment can be very good for the heavy engines part. I just want to understand, I mean, this will be more accretive than the current margins? Or how do you see the range of the margin for this business, sir?
See, the current business, you may be aware that we are not backward integrated, and we have excellent top-notch foundry partners who are leaders in India and also the OEMs themselves, 3 of the OEMs in India, major OEMs are running their own foundries, where we're getting the casting from. So it's a mixture of job work and also we buy the castings from our foundry partners. So it is an assorted margin what you're seeing on the current Powertrain business. Whereas the new Powertrain business for the larger engines, yes, it will start also with the sort of job work site activity, but the castings are not being produced in India, most of them, 95% of them.
There's only 1 or 2 small suppliers here. So we are getting the castings from Europe and U.S. to start with for the activity in '27, while we ramp up our foundry capacity here with the [ Pro ] also, the castings have to be validated. So when we are supplying with material, it looks like as if the margins will be lower than the conventional Powertrain business. But I can assure you that the margins are in line with the current Powertrain business as in formula-wise how we calculate. When we are buying the castings from elsewhere, there cannot be a margin on the castings. But we make our castings, it will be there. But the margin on the castings, surely, it will be slightly lower than the machining because machining is done value addition. There's no material cost involved. So optically, it looks like a higher margin. So on the blended average, we are on par with whatever we are currently doing.
The next question is from the line of Abhishek [ Kumar ] Jain from AlfAccurate.
Congrats for the strong set of numbers, sir. Sir, my first question on the Aluminium side. So on the Sunbeam, how the quarterly run rate of the revenue and EBITDA margin would be in FY '26? So in this year, this quarter, we have done around INR 300 crores kind of the numbers and EBITDA is around 6% to 7%. So how this revenue and EBITDA would be at the end of the quarter -- at the end of FY '26, sir?
So Q1 will be weak. Q2 will be strong. Q3 will be weak. Q4 will be the most strong on the -- both on the revenue and EBITDA numbers. So there are 3, 4 factors. The plant shifting from Gurgaon to Bhiwadi will be completed by Q2 latest, I would say. So there will be consolidation happening in Q3. So Q4, the operating leverage at Bhiwadi will set in and the cost optimization also will set in and also manpower rationalization will be complete by Q4 with also peak revenue will be generated in Q4. So on a blended average, we can say between 8% to 10% EBITDA is what we expect for the full financial year, but Q1 will be quite muted.
And what would be the peak revenue in FY '26? We assume that in last quarter, you have done around INR 300 crores. So what would be the...
Yes. As a whole, I think -- yes, I think we are only guiding for around INR 1,200 crores only for the year.
INR 1,000 crores.
INR 1,200 crores.
INR 1,200 crores. So there won't be any increase in the revenue...
No. See, we are in the consolidation mode. So we are not really taking any new business and the new business, if you take it also, the revenue will not be coming in the financial year. You can appreciate that this company was getting into an insolvency situation. And in that case, no new orders were given by customers or new projects were not going on in its existing projects. So I think it is more of stabilization, reorganization and consolidation, which will happen in the coming year. So that is where the margins will come. The -- whatever the other business of Craftsman by itself organically will be growing, DR Axion also will be growing.
And in -- on the DR Axion side, what would be the peak revenue in FY '26 or FY '27?
Will it grow by that 10% to 12% or it could be better because of this capacity expansion plan for the Hyundai?
So whenever we talk about whether Sunbeam, Craftsman, DR Axion, we have to take one thing into mind. There is always the question of the commodity price aluminium. So that will also change the top line a little. So -- but I would say that between DR and Craftsman, Craftsman will be growing at 20% -- more than 20% CAGR for the next 2 years, that is FY '26, '27. That is on the organic side of the conventional business of Craftsman is also growing, plus alloy wheel is also adding to the revenue on a blended average. So overall, we'll be plus 20%, 20-plus percent. On -- we'll have a double-digit growth on DR, I would say on a CAGR basis. But I think 8% to 10% is realistic for FY '26 and maybe slightly higher than 10% in FY '27.
Okay, sir. And my last question on the loan borrowing side now, we have around INR 1,900 crores kind of the debt in books. So what is your deleveraging plan for the FY -- next 2, 3 years?
So if you look at it, the cash generation will be quite high in the -- even the next financial year, plus aided by possibly the land sale by Q3 or Q4 of Sunbeam that will add around INR 300-odd crores plus depending on that market value at that particular point of time. And our CapEx guidance as a whole for the group will be around -- only around INR 750 crores to INR 800 crores totally in that region.
INR 750 crores in FY '26?
Yes, on a group level and the group level EBITDA of upward of INR 1,100 crores and a land sale of INR 300 crores. The depreciation is around INR 450 crores. There will be some interest outflow. And for Sunbeam, there will be no tax, but for DR and Craftsman, there will be taxes.
[Operator Instructions] The next question is from the line of Ram from Avendus Spark.
So sir, I wanted to understand your guidance on the alloy wheel revenue scale up both at Bhiwadi and Hosur over the next couple of years.
The exact numbers, I will not be able to give because there is -- still we are new in the business. But I think we have already given that number during the last earnings call itself on the alloy wheel. I think I may reiterate that number. We are talking about the -- Bhiwadi will be around INR 300 crores plus for FY '26 and Hosur will be around INR 150 crores.
INR 150 crores for FY '26 again?
It is already as per the earlier earnings call.
Okay. Okay. And in Sunbeam, sir, is exports an area that we are focusing on intensely? Can you talk about any new order wins there or RFQs that the company has...
So, Sunbeam, as I mentioned, it was an insolvency situation. So there was no order pipeline, new order pipeline when we took over Sunbeam totally. So it is a question of stabilization for the next 1 year before we get in any new order pipeline and that will get into any sort of revenue only in FY '27 and FY '28 only. I think we are trying to leverage -- our operating leverage by consolidating our plant in Bhiwadi. So Tapukara plant of Sunbeam is also hardly 10 minutes away from the Bhiwadi plant of Craftsman. The Gurgaon plant of Craftsman is getting -- Gurgaon plant of Sunbeam is getting shifted to also Bhiwadi. So this is giving operating leverage. So it's a year of consolidation for Sunbeam.
Okay. Super.
So manpower also rationalization we mentioned there, the union settlement is on and everything is on track as planned. So we don't see any change in the strategy as we envisaged in the beginning of the deal.
The next question is from the line of Mitul [ D ] Shah from DAM Capital.
Sir, my first question is if you can help with the utilization of various business segments currently for Q4?
I think, yes, on the Powertrain -- on the conventional Powertrain business, we have touched around 70-odd percent. So I think the upper limit will be 85% to 90% because of the seasonality as well as there will be some customers losing market share or they will have some inventory correction which will happen. So there is headroom. So I think, I will not say 70%, slightly below 70%. It's very difficult to exactly put a number to it. Even the Aluminium side, we are at -- operating at around 70%, 75%, but the order book is quite strong. So we need to increase CapEx. We will quickly touch 80%, 85% by Q2 itself. So by Q3, we need CapEx for the new orders which are already there in the pipeline.
Sir, second question is on your CapEx guidance of INR 750 crores to INR 800 crores group level. If you can split broadly in terms of stand-alone and just key 2, 3 subsidiaries, ballpark number would be helpful?
I think, INR 550 crores for Craftsman is what we expect in the current condition. And between Sunbeam and DR Axion, we will take it as it comes. We have just budgeted now. And there is some repair and maintenance and which is very old equipment at Fronberg, which may be around INR 40 crores, INR 50 crores may be there at Fronberg. We're evaluating it.
Sir, and last question on, as you initial remark highlighted that there is no effect of tariff. So any indirect impact wherever we are exporting and that again through any route goes to U.S. or anything like that?
See, we -- you might not know, but we have been exporting for the last many, many years at Craftsman from '95 onwards. So most of -- all the business what we do, we are either doing ex-works or FOB. Very rarely, I think hardly 5% of our business may be CIF, whatever exports we are doing as Craftsman. So similarly, for DR Axion, I think the only export is back to Korea that is also FOB or ex-works. I don't remember exactly. It is not CIF. So that is also to Korea. The U.S. exports as far as Sunbeam is concerned, it is negligible. It is more towards Mexico there. So I think around 15%, 20% of Sunbeam's revenue is coming from exports. So we don't have any impact on the tariff. Our products are high value addition and they mean a lot to the customer.
And I think we are very competitive also. So even if there is a tariff, they are willing to pay it and take it. Except one engineering customer, nobody has come and asked us for any price reduction or tariff. Nobody has even contacted us on this matter. So I don't see that as an impediment for the future exports.
[Operator Instructions] The next question is from the line of Abhishek Kumar Jain from AlfAccurate.
Sir, my question on the guidance side that last quarter, you have guided around INR 7,000 crores of revenue and EBITDA would be around INR 1,100 crores and EBIT -- and PAT would be around -- EBIT would be around INR 700 crores. You maintain that guideline in this? Yes.
Yes.
So -- and in Aluminium business, you said that the growth would be 20% CAGR, where the DR Axion growth would be 10% to 12%, and there will be a incremental revenue of about INR 600 crores from the Sunbeam. Can you please comment on the stand-alone business, how the growth will become from the stand-alone Aluminium business?
So the Q4 Aluminium revenue is the right picture, because as you understand that Sunbeam was having only less than 6 months consolidation. So the Q4 revenue has been around INR 1,000 crores overall. So it will be more than INR 4,000 crores for the year, even depending on the seasonality, it is more closer to INR 4,500 crores, I would say. So in the previous year, we had on the consolidated number, our revenue was INR 2,150 crores, strictly not comparable totally.
So when you took -- in '25, we look at the number of INR 3,000-odd crores, and we are already at a run rate of INR 1,000 crores per quarter. So overall, our growth will be on a consolidated basis, more than 30%, but it's not an apple-to-apple comparison. The realistic growth will be on a 20% level.
So we can expect around INR 4,200 crores, INR 4,300 crores kind of the revenue and 35% to 40% kind of the revenue growth in the Aluminium business, right?
Yes, because it's not comparable. The Q4 has been INR 1,000 crores. So we will be at anywhere between INR 4,300 crores to INR 4,500 crores overall. So that is what I was trying to say. It is not exactly apple-to-apple. On stand-alone, we'll be more than 20% CAGR. On DR Axion, it will be around 10-odd percent. Sunbeam is not really growing in that sense, but the full year of results will add to that number.
Okay, sir. And in the Powertrain business, basically, we have crossed around INR 500 crores kind of the revenue rate on a quarterly basis. In quarter 3, we have done around INR 512 crores. In quarter 4, we have done around INR 567 crores. So can we expect that this run rate will continue in FY '26?
Yes. I think the worst is over for the Powertrain. Our margins also will start creeping up with better operating leverage. But depends on one quarter to another quarter, there may be some changes. Always Q1 will have some challenges, but we don't see much challenge this year. Q3 will be always a challenge. So Q2 and Q4, we expect very strong quarters. So overall, I think the run rate of -- on the Powertrain will continue to grow.
Continue to grow. And...
It will have a double-digit growth for the year -- for the current year.
Okay. And in this quarter, we have seen there is a jump in the employee cost. So just wanted to understand that any one-off is, like I mean, VRS cost is attached in the quarter 4 employee cost?
See, you're talking about consolidated number, right, not the stand-alone [ '25 ], right?
Yes. Yes. Consolidated. Yes. Yes.
Yes, that is a one-off in Germany, yes, correct.
That -- how much that, sir?
That is INR 4.5 crores that is there. Yes.
INR 4.5 crores?
Yes. Because there is a holiday, I mean, accounting, I mean, like Christmas holidays, bonuses, all those things, because we formed a new company and taken over, and we have just bought the assets. So everything is in place now.
So VRS expenditure, when it will be accredited, sir?
It's not a VRS. Sorry, it's not a VRS. It is something like provisioning as per the -- their expenses throughout the year. There is a leave holiday for August leave, there is Christmas holiday bonuses which are there. So for that, we made because a new company and when we have taken over all the employees, we have just made the provisioning totally.
So just I'm saying that, sir, you are also looking for some VRS in the Sunbeam also or other subsidiaries as well.
For Sunbeam? Sunbeam is on track for that. Yes, we will be settling the balance 500 people, 450-odd people who are waiting for their VRS settlement once you're settling the -- closing down the plant. But there's a customer approval required for the new plant that is taking us some more time, maybe a few months more, but we are on track. As of today, the Gurgaon plant, almost 75% of the plant has been emptied for the machinery portion of it. Only 25% of machinery are left. Even that we are ready to move, but customer needs -- end customer, I would say the Tier 1 customer -- Tier 2 customers are okay, but the Tier 1 customer, the OEMs, the passenger car manufacturers in North America, they need validation before they can move the production to the new site.
What would be the quantum of the VRS expenses and it will be also added in the employee expenses, sir, [ in FY '26 ]?
Before we took over, there's nothing new. It was INR 160 crores settlement for our 1,000-odd people, 500 people have left paid and the balance was provisioned in the opening when we took over itself. So there's no new provisioning will come up.
So you have already taken INR 160 crores provisioning in quarter 3 or quarter 4?
At opening balance itself, when you took over the company, what we need to understand is we never paid anything for the company per se. It was equity into the company. It is not for buying any shares. Shares are bought at INR 1. That is it. So all the money what we have put into the company has gone into the company for settlement of maybe some vendors and things like that. Even most of the liability of the banks are settled by the erstwhile owners and the -- whatever the -- some of the bank liabilities was left behind, which we funded was in lieu of the land sale of Gurgaon.
Okay. So that means there won't be any VRS expenses will be in the profit and loss account in the company side?
No VRS expenses will hit the P&L in Sunbeam. Everything was provisioned in the beginning itself.
Okay. And last my -- last question on the other expenses. This is -- it started to go down. So I just wanted to understand what are the other cost control measures you are taking that's where the other expenses will come down in the coming quarters?
I mean you're talking about expenses, you're talking about -- sorry, I didn't get the question, please.
Other expenses, other expenses which has come down in quarter 4 FY '25 because of the quarter 3, there were some one-offs.
Yes. Because of this a lot of M&A work we have done. We have taken over [ 20% ] of the -- 24% of DR Axion, Sunbeam takeover, there was Fronberg takeover. There is a lot of expenses we have incurred as onetime.
So will it come down to 22%, which we used to be earlier like 21%, 22% in quarter 2 or quarter 1?
Yes, I think the absolute number will increase, as a percentage, it will come down. Yes, correct.
The next question is from the line of Mumuksh Mandlesha from Anand Rathi Institutional Equities.
Sir, in the segmental reporting, there is some line for others in the stand-alone business, which is around INR 148 crores. Just can you explain what is others in the stand-alone business, sir?
So this is a onetime subject which has come on 2 fronts. One is regarding some CapEx which is incurred by Sunbeam. We had to buy the equipment, keep everything ready because Sunbeam was not ready at that level financially, and we transferred the brand new machines to them totally. So it is an no profit, no sale on the equipment because equipment has to be paid for. Otherwise, we may not be able to do the shifting of the plant.
Second thing was we rationalized the aluminium alloy inventory, which was high in Craftsman by transferring at cost to DR Axion. These are the 2 one-offs. There is no -- it is not a transaction made for profit. It is not a manufacturing activity. So it cannot be termed as any income.
Got it, sir. Sir, for the storage margin, this quarter, I mean, the Industrial segment margins have seen a lot of improvement in Q4 quarter. Can you explain what led to the improvement there? And going ahead for the next year, how do you see the margins for this business, sir?
See, this is, you may be aware of this, but I would like to reiterate one particular point on the storage business. This is not at all CapEx intensive. There is CapEx, but compared to the automotive business of both Aluminium and Powertrain, this is a negligible CapEx, I would say. And working capital also, the total capital employed is quite low. So even though margins may be low, once we see the traction what we got in Q4, which will continue into the next financial year, of course, there can be some blips in quarter-to-quarter. But overall, we can expect that the results for FY '26 will be better than the results of Q4 of FY '25. And the reason for that is the automated storage division is getting new orders because we have made enough inroads into the market.
We have enough projects which have been implemented to showcase to our new incoming customers, and we are getting the right pricing for the product, number one. Number two, I think we also have rationalized the product costing. And also on the static cracking, we are doing good -- having good traction there. So as a blended company, I think we have matured as a storage solution company. This is a very difficult business. Within 5 years, we have come to a level that we -- this can be really a stand-alone also possible storage solutions business. Not that I'm implying anything, no, please don't take it that level. But we have grown this business to be able to stand on its own feet now.
Great to hear that. And also on the revenue side for next year, how do you see growth for the business, sir, storage business?
High teens, I would say, almost 20%, we can expect the growth on the storage business.
Got it, sir. And just lastly on the one number, sir, if you can help us, what was the DR Axion Q4 revenue and EBIT, sir?
I will -- I don't know. EBIT, it will be already there on the -- this is a little -- we cannot divulge that because that is a competitive information. We can give you the revenue, please.
Sure. Sure, sir. Yes.
Revenue DR, [ INR 376 crores ].
Ladies and gentlemen, we will take that as the last question. I would now like to hand over the conference over to Mr. Ravi Srinivasan (sic) [ Srinivasan Ravi ] for closing comments.
I think there is a couple of -- one more question is there, I think.
Yes, sir. We'll -- if you want, we can take that.
Yes. We can take that.
Okay. Ladies and gentlemen, the next question is from the line of Ajox Frederick from Sundaram Mutual Fund.
Sir, I have a couple of questions. One is on the balance sheet working capital. The OCF saw stretch, I mean, compression due to some working capital stretch so -- on a consolidated basis. So what is causing that, sir, for the year?
I didn't understand the question.
The operating cash flow for the full year in consolidated basis saw compression and that is because of a working capital stretch. So what is causing that operating cash flow to compress year-on-year?
Is it because it's a consolidated basis is Sunbeam, right, Sunbeam. So it's not an apple-to-apple comparison, because Sunbeam, we had it only for 6 months. That may be the reason you may be not being able to compare.
Okay. And was there any infusion of working capital for Fronberg?
Yes, there has been working capital infusion, but not -- it is still -- the money is still not utilized. It is lying with the holding company there. So it has not been infused into the company. It is still lying as cash in the holding company. And we have infused as I understand, only EUR 800,000 for the working capital.
Okay. Okay. And sir, secondly...
No, just I want to -- just I want to mute for a minute to just check in the list.
Yes. Yes.
See, okay, now I get the point because this is a slump sale, I think we need to understand the process of this auctioning by the insolvency agency and things like that. The right towards the real estate lies with the lenders totally. And the other movable assets are also lying with some of the working capital banks and some are lying with the creditors totally. So the proportionate method of working has made that the total deal was fixed and the apportionment was done by the credit committee there totally on this matter. So that is how the apportioning has been done.
There may be a slight distortion on how much has gone to fixed assets and how much has gone to liquid assets. That's all. We have paid roughly [ $10.5 million ] or something like that as a deal overall, apart from the takeover expenses which we observed here. Then we have left some money there, [ $3 million, $4 million ], which is not required. But anyway, we left it at the holding company. If they need, they can take it. That's what is the total deal.
Okay. But it has been accounted in working capital for us particularly in this year.
No, no, that is not accounted. That's still lying as...
Still lying as cash. Okay. Understood.
Yes. Yes. Yes.
Okay. Okay, sir. Secondly...
[indiscernible] level, it's not gone to the operating company. Yes.
Okay. Okay. And sir, secondly, on the guidance, right? We have a very strong guidance on Powertrain, Aluminium and even storage business. So sir, if I tie it up to the underlying, right, be it a CV or a PV industry, we may not see such high volume growth. So where is this confidence coming for us to deliver 20% plus kind of growth on an organic manner?
We have been diligently trying to diversify our customer portfolio. Now -- we earlier had 6 customers giving 50% of our revenue and balance 50% of the customers coming from -- I mean, more than equal to 100 customers, I would say. Now the top 60% revenue is coming from 12 customers and in diversified end customer segments. So our product mix is like this in the company side revenue, I mean at least -- this is the auto sector or this is the other company?
Consolidated, if you look at it, the commercial vehicle portion is coming to 17%, 2-wheeler is coming to 18%, passenger vehicle is 32%, storage is 10%, non-auto aluminium is 6%, off-highway is 5% and tractors 4%. I think overall, I think we have diversified quite well overall. And we have also invested for customers who are export-oriented. Many of the OEMs from the Eastern part of the world, like Japan and Korea are also setting their sights on African market for both passenger car, 2-wheeler, pickup trucks, tractors and all the products which are going to go into Africa in the future, which is the last market to be developed. The products are similar to India, what India needed -- wanted in the last 2 decades, but India is migrating to slightly higher products now.
So these products are not anywhere being used in the Western world. So India is becoming a hub for manufacturing. Even the largest PV player in the country is guided for 4 million cars, setting up a plant in -- one more plant in Haryana and one more plant in -- I mean, one more plant has come upstream in Gujarat. This is towards export orientation. If you look at the manufacturers, that footprint in Rest of the World is reducing for manufacturing. And China, their own -- in Japan itself, they're downsizing our operations and exports of vehicles are taking place from India to Europe as well as to Japan totally.
Similarly, for the 2-wheeler market, Indian manufacturers also are exporting to Africa, and we'll see that multinational companies, 2-wheeler manufacturers from India also exporting to Africa. So all this is leading to some sort of a growth trajectory. I will take a few names. You have Escorts been taken over by a Japanese manufacturer. And this is also will lead to, in the future, some export growth. We have independent manufacturers, engine manufacturers, companies like Yanmar also. They are trying to increase the footprint in India towards export. Maybe they will be downsizing their Japanese operations, because I don't want to take too many names here because you can understand that it is normal for when from a developed world where high cost of manpower is there and the market by itself is not growing in those countries, it is logical for them to shift the production base here where it's required for India and similar product is required in new developing markets like South America and Africa.
That is where my confidence is coming from. Second thing is the commercial vehicle segment has seen a lot of correction in the past totally. Now it is quite stable and the product maturity is continuing to happen that the bigger trucks are selling better than the smaller trucks on the highway. Of course, intercity is a different situation, but I think for the long-haul routes. And you also see that the tractor market is also looking up in a way because of the monsoon and things like that. And we are also having the right customers on our passenger vehicle business as Craftsman, and the Sunbeam business on passenger vehicle is looking towards -- mainly towards North America. And the DR Axion, you are aware that we are with the second largest PV player in the country. And they are setting up a new plant also in the Western region. And we also started exports back to Korea for the parts similar to what we manufacture here. Not exactly the same part, similar family of parts already started.
Okay. So basically, it's incremental customers and the customers also increasing capacity. So that's helping it. So that's...
Second point is on alloy wheel and other parts, we are having an import, which was coming from China. Now it is getting localized within here. It is not a new growth in the business, growth in the requirement in India, but it is -- that means just their imports are getting replaced by Indian suppliers. That's all.
As there are no further questions from the participants, I now hand the conference over to Mr. Srinivasan Ravi for closing comments.
Thank you. I just want to say a few words on the strategic point of view. We always said that most of the Tier 1 suppliers, and I'm not talking about the top 20, top 30, but I think the next leg of suppliers are subscale to attract any sort of attention from the global players as a supplier. And this is coming from the comparison within China. For example, the aluminium capacity for castings and machining in the country is in the region of 10% of the Chinese capacity totally, which is quite small. And that means there is a lot of headroom to grow. The aluminium majors across the world are in anywhere between $2 billion to $8 billion in revenue, each of them. And when Indian market is growing, the aluminium content is growing, naturally, the lightweighting of the passenger vehicle has to happen.
So while we're waiting for all that, I think we as Craftsman believe that we need to broad base our activity. And at $0.5 billion in Aluminium business, I think we are still subscale. We will try to grow this business. On the Powertrain, traditional Powertrain business, we are having a global size. So now we are attempting a global size on the station engine business, that is the top 5 suppliers in the world is what we are aspiring to be there on the -- that sort of -- that means multinational companies setting up [ shoppe ] here will also be exporting large engines out of India. It's only a matter of time, which is there. You know that Europe has got its own set of challenges and U.S. also, and other developed countries like Korea and Japan have got a different challenge totally. So we are well poised in this matter. So we have done some CapEx investments a little ahead of time that is causing a lot of strain in the entire outlook of our balance sheet and things like that in a temporary period.
You may recall that we have taken only INR 140 crores, INR 150 crores as private equity as equity infusion in 2010, '12 put together from the erstwhile well-respected private equity investors at that time. And then we have raised only INR 150 crores in the IPO in '21. So we went last year with a mandate to raise INR 1,200 crores QIP sensing the opportunity and also sensing the disruption coming from tariffs and geopolitical situations in -- also in Europe. So we want to capitalize on all the opportunities there. And during the fundraise, I had to communicate to the investors, we are going to have a few quarters, quite a few quarters, which we will not be giving the required results as desired by our investors. So not that we are totally out of the woods, but I think the worst is over. I think we will be looking up going forward and the growth trajectory will continue for 3 years, surely, everything is -- the path is set right for that.
So thank you very much, and thank you for your confidence.
Thank you. On behalf of Craftsman Automation Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Thank you.