Q1 2027 Unimech Aerospace and Manufacturing Ltd Earnings Call Transcript
Key Points
- Revenue grew 71% year-on-year to approximately ₹108 crore, with a 32% sequential increase, driven by strong customer procurement and the initial contribution from the Hobel Bellows acquisition.
- Consolidated EBITDA margin remained robust at approximately 36.5%, supported by a healthy gross margin of 65% and low testing costs at 3% of revenue.
- The signing of a long-term supply agreement with FACC Austria, valued at USD 7.5 million over five years, marks a strategic milestone in securing recurring aerospace component supply.
- The company completed 165 first article inspections (FAIs) during the quarter and initiated engagement with six additional prospective customers, expanding its potential pipeline.
- The Hobel Bellows integration is progressing well, with the AS9100 certification targeted for Q4 FY27, which will qualify the facility for aerospace programs and expand its addressable market.
- The Saudi Arabia joint venture with Yusuf bin Ahmed Kanoo Group is on track, with encouraging customer responses and the establishment of a manufacturing footprint outside India.
- Consolidated order book stood at approximately ₹280 crore as of June 30, marginally lower than previously indicated, reflecting strong execution and customer pull-ins.
- Other income declined to ₹7 crore from ₹15 crore in Q4 FY26, as treasury surplus was deployed toward the Hobel Bellows acquisition, reducing non-operating earnings.
- Working capital days increased to approximately 130 days and are expected to rise to 160 days plus by year-end due to higher inventory commitments for long-cycle aerospace programs.
- Capacity utilization is currently at approximately 58%, with an additional 10% of capacity committed to qualification programs, indicating underutilization of existing assets.
- The company faces potential tariff risks from U.S. trade policies, though it has implemented mitigants like the free trade warehousing zone and is diversifying geographically.
- The planned capital expenditure for the Saudi JV and potential early capacity investments are expected to double gross debt by FY27, increasing financial leverage.
Ladies and Gentlemen, Good day and welcome to Q1 and FY27 on a conference call of Unimec Aerospace and Manufacturing hosted by Anand Rathi Sharon Stock Brokers Limited.
This conference call may contain forward-looking statement about the company which are based on the beliefs, opinions and expectation of the company as on date of this call. These statement are not the guarantee of future performance and involve risk and uncertainties that are difficult to predict.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Manish Vellisha from Anandrati.
Thank you and over to you Manish.
Thank you. Good morning everyone. We welcome you all
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