28-05-2025
AXISCADES Technologies Ltd (BOM:532395) Q4 2025 Earnings Call Highlights: Record Revenue ...
Release Date: May 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
AXISCADES Technologies Ltd (BOM:532395) achieved a significant milestone by crossing 1,000 crores in consolidated revenue for the financial year 2025.
The company's core verticals, including aerospace, defense, and ESAI, showed strong growth, with aerospace growing by 13% and defense by 16%.
The adjusted EBITDA grew by 17% over the previous year, indicating improved operational efficiency.
The company has embarked on a major business transformation initiative to achieve nonlinear product-led growth, aiming for a billion-dollar revenue by 2030.
AXISCADES Technologies Ltd (BOM:532395) has significantly reduced its finance costs and maintains a healthy balance sheet with a low net debt position.
The non-core verticals, such as heavy engineering, automotive, and energy, have been negatively impacted by macroeconomic factors, affecting overall growth.
The company's enterprise-level EBITDA margin is diluted to 13.8% due to negative margins in non-core businesses.
There were one-time and non-recurring costs of around 14 crores in Q3 and Q4, impacting the financial results.
The automotive segment, particularly the acquisition of ADD Solutions in Germany, did not achieve its growth objectives.
The company faces challenges in recalibrating its non-core businesses, which are still impacted by external macro factors.
Warning! GuruFocus has detected 6 Warning Sign with BOM:532395.
Q: Can you explain the one-time costs mentioned in the earnings report? A: The one-time costs, amounting to 14 crores, were primarily due to a leadership overhaul and voluntary separations, including the previous CEO. These costs also included legal expenses and consulting fees related to our automotive business. These are non-recurring costs and will not repeat next year. - CFO
Q: What are the key levers for achieving the target of 24% EBITDA margin under the Power 930 initiative? A: The key levers include focusing on our core businesses like aerospace, defense, and ESAI, which already have higher EBITDA margins. We aim to shift from a service-oriented model to a product-led approach, which will drive margin expansion. - CEO
Q: Can you provide more details on the phases of your new facility development and the types of missiles you plan to manufacture? A: Phase one will focus on strategic electronics, including radar and electronic warfare systems. Phase two will involve missile assembly and manufacturing, focusing on smaller missiles. Phase three will include MRO and supply chain facilities for aerospace and defense. - President of Defense
Q: What is the visibility for the revenue growth guidance in aerospace, defense, and ESAI? A: In aerospace, we have secured revenues with current customers and a strong pipeline. Defense growth is driven by production programs and new OEM opportunities. ESAI's growth is supported by a robust order book and new product initiatives. - CEO, President of Defense, President of ESAI
Q: How do you plan to fund the CapEx for the new facilities, and what is the expected revenue contribution? A: Phase one will be funded primarily through internal accruals, with strategic partnerships for subsequent phases. We expect a healthy asset turnover of 2 to 2.5 times for phase one, contributing significantly to future revenues. - CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
