Tube Investments of India · forward-looking guidance across the available source record.
Guidance tracker
Management articulated increased confidence in delivering 15% annual growth from core businesses (TI 1), up from previous high single-digit CAGR guidance, driven by geographic expansion, new product development, and market share gains across engineering and metal formed products.
30% capacity expansion across engineering business verticals (cold rolled strips, tubes, and large diameter exposures) with 70% completion by Q1 FY24; remaining 30% spilling into Q1 FY25, expected to support volume growth for next 2 years.
Management reiterated commitment to maintain peak debt below 2x annual free cash flow, with current net debt below working capital. INR 1,000 crore already invested in EV business (three-wheeler, truck, tractor) with only INR 200 crore remaining capex.
Management expects double-digit growth in engineering and metal formed segments driven by construction/non-auto demand, EV weight reduction opportunities (high-strength metals), and export market penetration where current global market share is minimal.
Currently operating 17 dealers for electric three-wheelers, with plans to expand to 150 pan-India dealers by fiscal year-end to support market share growth in North markets from current 4-5%.
Second variant of 55-ton 6x4 heavy commercial truck to launch in September-October 2024, with combined portfolio expected to address ~20% of total industry volume (TIV) in the segment.
Greenfield plant in Noida for medical consumables (TI Medical) currently in land acquisition phase; expected to commence commercial production approximately one year from now, i.e., Q2 FY26.
Management maintained confidence in achieving double-digit EBITDA growth for the standalone business in FY2026, excluding the EV startup losses, supported by 10% volume growth in Engineering and cost efficiency measures.
Management explicitly withdrew the previously guided operational break-even for the three-wheeler and FCV (truck) business for FY2026, citing lower-than-expected volumes and unfavorable policy environment.
Target to increase EV 3-wheeler dealership network from current 91 to 125 by end of FY2026 to improve market coverage and compete more effectively against established ICE-to-EV converted competitors.
TI Clean Mobility plans to apply for eligibility under the government's PMV Drive (PM E-Drive) scheme in Q2 FY2026, with product qualification work underway; application expected to be filed before next investor call.
Management targets this growth rate based on market share gains, new product development, light weighting initiatives, and continued export focus which carries better margins.
Homologation submission for 27HP model targeted between January-March 2024, with start of production in April-June 2024 in selected markets representing large share of tractor range.
At approximately INR 52 crore baseline as plant build-outs (except small commercial vehicles) are largely complete; no significant increase expected going forward.
Lab operational approval expected in next 10 working days; 20-acre plot in Hyderabad confirmed; construction to commence after allotment letter received.
Management expects standalone margins to improve in H2 FY25 as one-time operational expenses recognized in Q2 will not recur. Engineering margins would have been flat excluding these expenses.
Dealer network expansion for electric three-wheelers is on track; invoices issued for North, East, and West regions. Currently at 83 operational dealers across 60-65 cities.
Cargo version of electric three-wheeler will launch in next couple of months. Prototypes undergoing validation and customer trials with good feedback on economics.
Small commercial vehicle (SCV) and farm tractor launches targeted for this quarter or next. Products currently in testing, field validation, and beta testing phases.
Management projects standalone PBT growth in the 12-14% range, requiring INR 300-400 crore capital expenditure to support expansion.
Base business capital expenditure planned at INR 300-400 crore for FY27 to drive the targeted 12-14% PBT growth.
Greenfield and expansion investments planned for TI Medical and Three Expert ventures, with INR 400 crore allocated across these businesses.
TI Medical targeting 15%+ growth in sutures/surgical business, with additional new vertical launch planned to accelerate growth toward 25%.
TICMPL plans INR 460 crore capital expenditure next financial year for tooling, R&D prototyping, homologation, and factory expansion across all four EV platforms (three-wheeler, heavy truck, SCV, tractor).
Two additional product platforms—a tractor and a 3.5-ton small commercial vehicle—will hit the market around August-September 2024, with Jayem Auto leading SCV development.
Dealer network expanding from 40 to 75 by end of current quarter, with north and east market entry underway. Full supply chain resolution expected by end of next quarter.
Company expects standalone free cash flow of approximately INR 650 crore annually, with investments capped at 2x free cash flow to maintain financial discipline.
Management targets achieving operating break-even in the EV mobility business (three-wheeler and truck operations) by next financial year, factoring in reduced subsidy expectations.
The $1 billion revenue target for the EV business by 2029 remains intact, with focus on achieving stated internal market share targets in truck (year-plus as sole player) and three-wheeler segments.
Small commercial vehicle (e-LCV) and cargo variants will begin full commercial sales from April 2025, with seeding to begin in Q4 FY25. Dealer LOIs have been issued for SCV business.
The company plans approximately INR 300 crore of capacity capex across all four EV businesses (three-wheelers, trucks, SCV, tractors) for the upcoming year.
Management committed to INR 500-750 crore incremental investment from parent balance sheet to fund EV business toward EBITDA/cash flow breakeven in 12-18 months for heavy vehicles and three-wheelers, followed by SCV and tractor.
CG Power targeting services revenue growth from 1-2% to 30% range; recruiting 1-2 key hires to drive this expansion, with team expected on board in Q1 FY27.
Railway project delayed from Q4 FY26; prototype samples now targeted for March-April submission with FY2027 expected to be the meaningful revenue year.
Engineering division capacity sufficient for FY2027; CapEx decisions for FY2028 will be based on demand assessment and capacity utilization review.
Investment will build capabilities in engineering and metal form divisions through both capacity expansion and capability enhancement, with most spending in FY25 and some spilling into Q1-Q2 FY26.
Breakup: INR 472 crore for small commercial vehicles, INR 72 crore for three-wheelers, INR 71 crore for trucks, INR 31 crore for tractor, plus central R&D investments.
Currently at 14% of total revenue with exports growing 14% YoY, driven by engineering and other businesses with several OEM approvals in pipeline.
New SCV plant in Chennai with 50,000 vehicle capacity coming online, with deployment of INR 472 crore capex and INR 80-90 crore in POs already released.
At least two of the four EV businesses (three-wheelers, trucks, SCV, tractors) to achieve operational break-even within current financial year, driven by revenue scale-up and fixed cost absorption.
The EV mobility business targets $1 billion total size including exports, representing the primary revenue milestone for the division.
Seven-year contract for railway bogies awarded to MFPD division, expected to start in Q4 of current financial year and revive railway contribution to original levels.
Core engineering and metal form businesses to receive approximately INR 300 crore capex investment, with additional investments for TI Medical and CDMO as opportunities arise.
Core business capex guidance provided for FY2027, covering capacity expansions in steel tubes (Nasik CRSS plant ramp-up) and ongoing operational requirements.
Additional capital to be deployed into TIC MPL (EV business) and TI Medical Private Limited based on scaling requirements, per management estimate.
Naidupet facility is under final commissioning; commercial production commencement is targeted for the upcoming quarter as stated by management.
Management expressed confidence in TI Medical achieving 15-20% year-on-year growth trajectory, driven by completed regulatory approvals, European/SEA market scaling, and IV Cannula business addition.