Mobile phone volumes to scale significantly in H2
Motorola volumes expected to increase to 2 million per quarter from Q3, and Itel/Xiaomi production to ramp up from September.
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Refrigerator commercial production in Q3 FY24
New 1.2 million unit capacity refrigerator plant in Greater Noida to start commercial production in October-December quarter.
CapEx of INR 400-420 crore for FY24
Capital expenditure guided at INR 400-420 crore for the full year, primarily for mobile expansion, refrigerator project, and new facilities.
Lighting export opportunity of $200 million in 2-3 years
Management sees potential to build a $200 million export business in lighting over the next couple of years, driven by Europe and US.
IT hardware revenue target of INR 3,500-4,000 crore annualized
Management expects IT hardware revenue to reach INR 3,500-4,000 crore on an annualized basis, driven by contracts with Lenovo, Acer, and two additional global brands.
CapEx of INR 500-600 crore for FY25
The company plans to invest INR 500-600 crore in capital expenditure this fiscal, similar to last year's INR 550 crore, for capacity expansion and new facilities.
EBITDA margin guidance of 3.9-4%
Management indicated that consolidated EBITDA margins will remain in the range of 3.9-4%, similar to current levels.
Display module production to start by Q1 FY26
The display module JV with HKC is expected to commence production by end of this fiscal or Q1 next fiscal, with initial capacity of 2 million units per month.
FY26 mobile volume target of 42-43 million units
Management reiterated the target of 42-43 million mobile phone units for FY26, excluding Vivo JV volumes.
Q2FY26 smartphone volume growth of at least 15% QoQ
Order books for Q2 indicate at least 15% sequential growth in smartphone volumes, driven by festive season and export ramp-up.
FY26 CapEx of INR 1,150-1,200 crore
Total CapEx for FY26 is expected to be INR 1,150-1,200 crore, including INR 750-800 crore for camera and display JVs and INR 300-400 crore for capacity expansion.
Margin expansion of 120-130 bps in FY27 despite PLI expiry
Management expects EBITDA margin expansion of 120-130 bps in FY27, driven by backward integration and operating leverage, offsetting PLI benefits.
IT hardware revenue target of INR 4,500-5,000 Cr by year 3
Management expects IT hardware (laptops/tablets) to generate INR 4,500-5,000 Cr annual revenue within 2-3 years, driven by partnerships with HP, ASUS, Acer, and Lenovo.
Telecom revenue of ~INR 2,400 Cr in FY25
Telecom segment is targeting ~INR 2,400 Cr revenue this fiscal, up from ~INR 700 Cr last year, with next year's order book at INR 6,000-7,000 Cr.
Component backward integration to improve margins in 15-18 months
Management expects margin expansion to start reflecting in 15-18 months as the component ecosystem (HKC display, camera modules, mechanicals) stabilizes, targeting 27% BOM capture.
CapEx of INR 550-580 Cr for FY25
Total CapEx for FY25 is expected to be INR 550-580 Cr, with INR 360 Cr already spent in H1. HKC display JV alone will require ~INR 375 Cr.
Mobile volumes of 55-60 million units in FY27
Management expects mobile phone volumes to reach 55-60 million units in FY27, driven by Vivo JV ramp-up and new ODM partnership.
IT hardware revenue target of INR 1,200-1,300 crore in FY26
IT hardware segment is expected to generate INR 1,200-1,300 crore revenue in FY26, with a JV with Inventec operational by Q1 FY27.
Telecom business to reach ~$1 billion in a couple of years
Telecom segment, including new US radio order, is expected to grow to approximately $1 billion in revenue within two years.
EBITDA margin expansion of 70-80 bps over 3-4 years
With backward integration and operating leverage, EBITDA margins are expected to improve to 4-4.5% from current ~3.8%.
Mobile volumes of ~25 million units in FY25
Management expects to produce around 25 million smartphones in FY25, driven by existing customers and two new large global brands.
Mobile operating margin to remain at ~3.2% with 10-20 bps improvement
Despite start-up costs, management expects mobile margins to sustain in the 3.2% range with potential slight improvement.
Capex of ~INR 400 crore for FY25
Similar level of capex as FY24, subject to budget finalization, to support capacity expansion and new customer programs.
IT hardware production start: tablets in Q4 FY24, notebooks by Aug-Sep 2024
Mass production for Lenovo tablets to start in current quarter; notebooks expected by August-September 2024.
Mobile segment margin expansion of 100-120 bps over 24-36 months
Backward integration into components like display modules, mechanicals, and camera modules will expand mobile EBITDA margins by 100-120 bps starting H2 FY26.
Display module production to start by Q1 end/Q2 FY26
Manufacturing of display modules in partnership with HKC will commence by Q1 end or Q2 beginning of next financial year.
IT hardware revenue target of INR 2,500-3,000 crore in FY26
IT hardware segment (laptops, tablets) expected to generate INR 2,500-3,000 crore revenue in FY26, supported by a potential JV with a global ODM.
Telecom revenue to double in next fiscal
Telecom segment revenue expected to double from ~INR 3,000 crore in FY25 to ~INR 6,000 crore in FY26, driven by new capacities and order book.
Mobile business margin guidance of 2.8%-3.2%
Management expects mobile phone EBITDA margins to remain in the 2.8%-3.2% range, with PLI contributing ~0.5-0.6%.
Camera module capacity expansion to 190-200 million units
Q Tech to expand camera module capacity from 40 million to 190-200 million units per annum over the next couple of years.
Display module mass production by Q2 FY27
HKC JV display module trial production to start by Q2 FY27, with first phase capacity of 24 million units per annum for smartphones.
IT hardware revenue target of INR 3,500-4,000 crore for FY27
IT hardware revenue expected to grow to INR 3,500-4,000 crore in FY27 from ~INR 1,500 crore in FY26, driven by strong order book.
FY25 smartphone volumes of 28-30 million (ex-Samsung)
Management guided for FY25 smartphone volumes of 28-30 million units, excluding Samsung, up from 6.5 million in FY24.
EBITDA margin around 4% for FY25
CFO Saurabh Gupta indicated that consolidated EBITDA margin should be around 4% for FY25, similar to FY24 levels.
CapEx for FY25 lower than ₹570 crore
Management expects FY25 capital expenditure to be lower than the ₹570 crore spent in FY24, with major capacities already created.
Display module manufacturing investment of $30 million
Planned investment of $30 million (₹250 crore) for a 25 million unit display module facility in Delhi NCR, with technology partner finalized.
Smartphone volume target FY26: 43-44 million units
Management guided for smartphone volumes of 43-44 million units in FY26, up from 28.3 million in FY25.
Smartphone volume target FY27: 60-65 million units
Targeting 60-65 million smartphone units in FY27, including 18-20 million from Vivo JV.
Refrigerator capacity expansion to 2 million units per annum
Expanding direct cool refrigerator capacity from 1.2 million to 2 million units per annum, with 50% revenue growth expected in FY26.
CapEx guidance FY26: INR 900-1,000 crore
Capital expenditure for FY26 expected to be in the range of INR 900-1,000 crore, similar to FY25.
FY27 revenue target of INR 56,000 crores (ex-Vivo)
Management targets ~15-17% revenue growth to INR 56,000 crores in FY27, excluding any Vivo contribution.
IT hardware revenue to exceed INR 4,000 crores in FY27
IT hardware segment expected to grow 3x to over INR 4,000 crores, driven by laptop/tablet/desktop orders and Inventec JV.
Telecom revenue target of INR 7,500-8,000 crores in FY27
Telecom segment to grow from INR 5,000 crores to INR 7,500-8,000 crores, led by microwave radio exports and design-led partnerships.
Margin expansion of 40-50 bps once component play is deployed
EBITDA margins expected to expand by 40-50 bps from FY26 levels once camera module and display backward integration fully ramps up in FY27-28.