Ladies and gentlemen, good day and welcome to the earnings conference call hosted by Craftsman Automation Limited. 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 this conference call, please signal an operator by pressing star then zero on your touchstone phone. 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 2025. 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. Straight away, we can start with the Q&A, as what I would propose. In the meantime, let me give one headline while you prepare your Q&A. The guidance given last year, last quarter, during the earnings call of FY 2024, for the first time we have given INR 7,000 crore top line and INR 1,100 crore EBITDA levels, and a wide range of, say, INR 500 crore-INR 700 crore EBIT. The INR 500 crore-INR 700 crore EBIT, we have already reached INR 512 crore EBIT in the current year itself.
We are expecting the region of INR 650 crore-INR 700 crore EBIT going forward in the next financial year because the depreciation will be around INR 450 crore. The guidance remains intact in spite of whatever is happening in the geopolitical situation and the tariffs. We are quite insulated, and we are ramping up quite well to sustain whatever the numbers we have given. We'll go to the Q&A directly. Yes, please. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We request all participants to ask a maximum of two questions at a time to allow all the other participants to ask questions. The first question is from the line of Mumuksh Mandlesha from Anand Rathi Institutional Equities. Please go ahead.
Yeah, hi sir, Mumuksh here from Anand Rathi. Firstly, just if you can help us on a few data points for the quarter, what was the two-year alloy wheel revenues and EBIT? Also, similar for the Sunbeam Q4 EBIT and EBITDA?
See, the alloy wheel is around INR 40 crore in the region of close to INR 40 crore for Q4. We were EBITDA neutral and EBIT negative of around INR 5 crore for alloy wheel. This is 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. Yes, the operational break even has happened with almost INR 40 crore revenue. Sunbeam revenue is for Q4 around INR 300 crore.
EBIT, EBIT doesn't?
No, that is a one-time, some subjects are there, which is leading to giving a INR 23 crore EBIT, EBITDA, yes.
23 crore EBITDA positive rates for the quarter.
Yes.
Got it, sir. Sir, good to see the improvement in the standalone margin. Sir, can you help us understand particular powertrain segment, we have seen the improvement this quarter? What led to the improvement there? Also, can you update how the Kothavadi plant order book is shaping up for the heavy engines? For the FY 2026 and 2027, how do you see the revenue trends there?
Powertrain in the beginning, I think 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. Now, overall, slight improvement in the operating leverage has happened that is helping us totally. There has been from the multinational companies a set of plants in India, they have started to produce with a one or two years delay, I would say. There is some slight revival in the farm sector and a slight revival in the commercial vehicle sector.
Whatever is the Daimler downside we had experienced in the many quarters, it has more or less stabilized now, so there is nothing more. Whatever we have, we are able to utilize the plants slightly better and optimize our cost. These margins will be sustained or improved depending on the quarter of the next financial year. For the full financial year, we can expect a better result on the powertrain even when compared to the cumulative result compared to the Q4 result. The margins will creep up just like the period before we did this massive correction on the powertrain. Any questions on the powertrain, on the fundamental powertrain business, then I will come to the new powertrain business.
Yeah, this is fine, sir. I can go ahead for the new business.
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 the very recent extent on farm sector and also construction equipment. That was recent and a little on the passenger vehicle segment. All that continues to be the mainstay. Now our growth is going to come from not only revival of these segments, but also from the stationary inside. We expect the first revenues to come in financial year 2027, not in 2026. In 2026, it will be there. The order book is filling up, but the development cycle time is around 18- 24 months. We will not see even any three-digit revenue. The three-digit revenue will only come in financial year 2027 on the new powertrain business.
As I mentioned, I think it will peak in 2029, 2030 for a $100 million revenue for this business. For that, the phase one of Kothavadi plant is ready, and it has become operational in Q1. We will see some revenue generated from this plant. The machine shop for machining the large engine blocks is also ready, and there are already trials going on for various customers. Orders are in place. You may appreciate these are very few companies in the world doing this as a tier one supplier. The OEMs are normally manufacturing them in-house. I would say less than 10 suppliers across the globe, including China, are there for this sort of activity, and there is a limited capacity. We have a global capability and global capacity now after the acquisition of Fronberg foundry.
In Europe also, on the foundry side, there are less than half a dozen foundries who are operational for these large engine blocks and two or three in the North American region and two or three in China. We are in 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. 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 three to four years. We will see significant growth, and that is also prompting the outsourcing. 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. Now with the order book full, I'm confident about this INR 800 crore revenue coming in 2029 or 2030.
Got it, sir. Just if I ask one last question, sir, you mentioned in the past the margin for the segment can be very good for the heavy engines part. 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?
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. Also, the OEMs themselves, three of the OEMs in India, major OEMs, are running their own foundries where we are getting the casting from. It is a mixture of job work, and also we buy the castings from our foundry partners. It is an assorted margin what you are 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 side of activity, but the castings are not being produced in India, most of them, 95% of them. There are only one or two small suppliers here.
We are getting the castings from Europe and the U.S. to start with for the activity in 2027, while we ramp up our foundry capacity here with the probe also. The castings have been validated. When we are supplying with material, it looks like as if the margins will be lower than the conventional powertrain business. 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. When we make our castings to be there, the margin on the castings surely will be slightly lower than the machining because machining is then value addition. There is no middle cost involved. Optically, it looks like a higher margin.
On the blended average, we are on par with whatever we are currently doing.
Got it, sir. Thank you so much for the answers.
Thank you. The next question is from the line of Abhishek Kumar Jain from AlfAccurate . Please go ahead.
Thanks for the opportunity and congrats for the strong set of numbers, sir. Sir, my first question on the aluminum side. On the Sunbeam, how the quarterly run rate of the revenue and EBITDA margin would be in FY 2026? In this year, this quarter, we have done around INR 300 crore kind of the numbers, and EBITDA is around 6%-7%. How this revenue and EBITDA would be at the end of the quarter, at the end of FY 2026, sir?
Q1 will be weak, Q2 will be strong, Q3 will be weak, Q4 will be strong. Q4 will be the most strong on both the revenue and EBITDA numbers. There are three, four factors. The plant shifting from Gurugram to Bhiwadi will be completed by Q2 latest, I would say. There will be consolidation happening in Q3. Q4, the operating leverage at Bhiwadi will set in, and the cost optimization also will set in. Also, manpower rationalization will be complete by Q4, with also peak revenue will be generated in Q4. On the blended average, we can say between 8%-10% EBITDA is what we expect for the full financial year. Q1 will be quite muted.
What would be the peak revenue in FY 2026? I assume that in the last quarter, you have done around INR 300 crore. What would be the?
As a whole, I think yes, as I think we are only grading for around INR 1,200 crore only for the year.
INR 1,000 crore?
INR 1,200 crore
INR 1,200 crore. So there won't be any increase in the revenue?
No. See, we are under consolidation mode, so we are not really taking any new business. The new business, if we 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. In that case, no new orders were given by customers or new projects were not going on. It is existing projects. I think it is more of stabilization, reorganization, and consolidation, which will happen in the coming year. That is where the margins will come. Whatever the other business of Craftsman by itself organically will be growing, DR Axion also will be growing in that new segment.
On the DR Axion side, what would be the peak revenue in FY 2026 or FY 2027? Will it grow by 10%-12%, or would it be better because of this capacity expansion plan for Hyundai?
Whenever we talk about whether Sunbeam, Craftsman, DR Axion, we have to take one thing into mind that there is always the question of the commodity price aluminum. That will also change the top line a little. I would say that between DR and Craftsman, Craftsman will be growing at 20%, more than 20% CAGR for the next two years. That is FY 2026 to 2027. That is on the organic side of the conventional business of Craftsman is also growing, plus Alloy wheels is also adding to the revenue on a blended average. Overall, we will be plus 20, 20 plus percent. We will have a double-digit growth on DR, I would say, on a CAGR basis, but I think 8%-10% is realistic for FY 2026 and maybe slightly higher than 10% in FY 2027.
Okay. My last question on the loan borrowing side, now we have around INR 1,900 crore kind of the debt in books. What is your deleveraging plan for the next two, two, three years?
If you look at it, the cash generation will be quite high in even the next financial year, plus aided by possibly the land sale in Q3 or Q4 of Sunbeam that will add around INR 1 crore or more depending on that market value at that particular point of time. Our CapEx guidance as a whole for the group will be only around INR 750 crore-INR 800 crore totally in that region.
INR 750 crore in FY 2026?
Yes, on a group level, and the group level will be a bit of upward of INR 1,100 crore and a land sale of INR 300 crore. The depreciation is around INR 40 crore. There will be some interest outflow. For Sunbeam, there will be no tax, but for DR and Craftsman, there will be taxes.
Thank you. Thanks for that, sir, for my time.
Thank you.
Thank you. Participants who wish to ask a question may press star and one at this time. The next question is from the line of Ram from Avendus Spark. Please go ahead.
Hi, good afternoon. Sir, I wanted to understand your guidance on the alloy wheels 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. I think we have already given that number during the last earnings call itself on the Alloy wheels. I think I may reiterate that number. We are talking about the Bhiwadi will be around INR 300 crore plus for FY 2026, and Hosur will be around INR 150 crore.
INR 150 crore for FY 2026 again?
It is already as per the earlier earnings call.
Okay. Okay. In Sunbeam, sir, is exports an area that we are focusing on intensely? Can we talk about any new order wins there or RFDs that the company has?
Sunbeam, as I mentioned, it was an insolvency situation. There was no new order pipeline when we took over Sunbeam totally. It is a question of stabilization for the next one year before we get in any new order pipeline, and that will get into any sort of revenue only in FY 2027 and FY 2028 only. I think we are trying to leverage our operating leverage by consolidating our plant in Bhiwadi. The Tapukara plant of Sunbeam is also hardly 10 minutes away from the Bhiwadi plant of Craftsman. The Gurugram plant of Sunbeam is getting shifted to also Bhiwadi. This is giving operating leverage. It's a year of consolidation for Sunbeam.
Okay. Super. Thank you.
Manpower also rationalization we mentioned there, the union settlement is on, and everything is on track as planned. We do not see any change in the strategy as we initiated in the beginning of the deal.
Good to hear, sir. Thank you very much.
Thank you.
Thank you. The next question is from the line of Mitul D. Shah from DAM Capital. Please go ahead.
Sir, thank you for giving the opportunity. Sir, my first question is, 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 %. I think the upper limit will be 85%-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. There is headroom. I think I will not say 70, slightly below 70 is very difficult to exactly put a number to it. Even the aluminum side, we are operating at around 70%-75%, but the order book is quite strong. We need to increase CapEx. We will quickly touch 80%-85% by Q2 itself. 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-INR 800 crore group level. If you can split broadly in terms of standalone and just three, two, three subsidiaries, ballpark number.
INR 550 crore for Craftsman is what we expect in the current condition. Between Sunbeam and DR Axion, we will take it as it comes. We have just budgeted now. There is some repair and maintenance, which is very old equipment at Fronberg, which may be around INR 40 crore-INR 50 crore at Fronberg. We are evaluating that.
Sir, and last question on, as your initial remark highlighted, that there is no effect of tariff. Is there any indirect impact wherever we are exporting and that again through any route goes to U.S. or anything like that?
See, we may not know, but we have been exporting for the last many, many years at Craftsman from 1995 onwards. Most of all the businesses what we do, we are either doing exports or FOB. Very rarely, I think hardly 5% of the business may be CIF, whatever exports we are doing as Craftsman. Similarly, for DR Axion, I think the only export is back to Korea. That is also FOB or exports. I do not remember exactly. It is not CIF. That is also to Korea. It is U.S. exports as far as Sunbeam is concerned. It is negligible. It is more towards Mexico there. I think around 15%-20% of Sunbeam's revenue is coming from exports. We do not have any impact on the tariff. Our products are high value addition, and they mean a lot to the customer.
I think we are very competitive also. 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. I do not see that as an impediment for the future exports.
Yes, sir. Thanks a lot and all the best.
Thank you.
Thank you. Before we take the next question, we would like to remind the participants that you may press star and one to ask a question. The next question is from the line of Abhishek Kumar Jain from AlfAccurate . Please go ahead.
Thanks for the opportunity again, sir. Sir, my question on the guidance side that last quarter, you have guided around INR 7,000 crore of revenue, and EBITDA would be around INR 1,100 crore, and EBIT at the PAT would be around EBIT would be around INR 700 crore. You maintain that guideline in this?
Yes.
In the aluminum business, you said that the growth would be 20% CAGR, whether DR Axion growth would be 10%-12%, and there will be incremental revenue of INR 600 crore from Sunbeam. Can you please comment on the standalone business, how the growth will become from the standalone aluminum business?
The Q4 aluminum revenue is the right picture because, as you understand, Sunbeam was having only less than six months consolidation. The Q4 revenue has been around INR 1,000 crore overall. It will be more than INR 4,000 crore for the year, even depending on the seasonality. It is more closer to INR 4,500 crore, I would say. In the previous year, we had on the consolidated number, our revenue was INR 2,150 crore, strictly not comparable totally. When you look at in 2025, we look at the number of INR 3,000 odd crore, and we are already at a run rate of INR 1,000 crore per quarter. Overall, our growth will be on a consolidated basis, more than 30%, but it is not an apple-to-apple comparison. The realistic growth will be on a 20% level.
We can expect around INR 4,240 crore kind of the revenue, and 35%-40% kind of the revenue growth in the aluminum business?
Yes, because it's not comparable. The Q4 has been INR 1,000 crore. We will be anywhere between INR 4,300-INR 4,500 crore overall. That is what I was trying to say. It is not exactly apple-to-apple. On standalone, we will be more than 20% CAGR. On DR Axion, we will be around 10% odd. Sunbeam is not really growing in that sense, but the full year of results will add to that number.
Okay, sir. In the powertrain business, basically, we have crossed around INR 500 crore kind of the revenue rate on a quarterly basis. In quarter three, we have done it on INR 512 crore. In quarter four, we have done it on INR 567 crore. Can we expect that this rate will continue in FY 2026?
Yes. I think the worst is over for the powertrain. Our margins also will start creeping up with better operating leverage. It depends on one quarter to another quarter, there may be some changes. Always, Q1 will have some challenges, but we do not see much challenges here. Q3 will be always a challenge. Q2 and Q4, we expect very strong quarters. Overall, I think the run rate on the powertrain will continue to grow.
Thank you.
It will have a double-digit growth for the current year.
Okay. In this quarter, we have seen there's a jump in the employee cost. Just wanted to understand, is there any one-off, like a VRS cost attached in the quarter four employee cost?
See, you're talking about consolidated number, right? Not the standalone employee cost.
Yeah, yeah.
I'm right, right? Yes, that is a one-off in Germany. Yes, correct.
How much that, sir?
That is INR 400 crore. That is it, yes.
400 crore.
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 just bought the assets. So everything is in place now.
DRS expected when it will be accrued?
No, it's not a VRS. Sorry, it's not a VRS. It is something like provisioning as per their expenses throughout the year. There is leave holiday for August leave. There is Christmas holiday bonuses which are there. For that, we made because a new company, and when we've taken over all the employees, we have just made the provisioning totally.
I'm seeing that, sir, you are also looking for some DRS in the Sunbeam also, other subsidiaries as well.
Sunbeam is on track for that. Yes, we will be settling the balance, 500 people, 400 odd people. We are waiting for the VRS settlement once we settle the closing down the plant. There is a customer approval required for the new plant that is taking some more time, maybe a few months more. We are on track. As of today, the Gurugram plant, almost 70% of the plant has been emptied for the machinery portion of it. Only 20% of machinery are left. Even that we are ready to move, but customer needs, end customer, I would say the tier one customer, tier two customers are okay, but the tier one 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. Okay.
It was already provisioned before when before we took over. There is nothing new. It was INR 160 crore 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. No new provisioning will come up.
You have already taken INR 160 crore provisioning in quarter three or quarter four?
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 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 were settled by the stale owners. Whatever the some of the bank liabilities were left behind, which we funded, was in lieu of the land sale of Gurugram.
Okay. So that means there won't be any VRS expenses will be counted as.
All the DRS expenses will hit the P&L in Sunbeam. Everything was provisioned in the beginning itself.
Okay. Last question on the other expenses. This has started to go down. I just wanted to understand what are the other costs that do not need to be taken, that the other expenses will come down in the coming quarter?
I mean, you're talking about expenses. You're talking about, sorry, I didn't get the question, please.
Other expenses, other expenses which have come down in quarter four FY 2025 because in the quarter three, there was some one-off.
Oh, because of this 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 at one time.
Okay. So will it come down to 22%, which used to be earlier like 21%-22% in quarter two or quarter one?
Yes, I think the absolute number will increase. As a percentage, it will come down. Yes, correct.
Okay. Thank you. Thank you. That's all from my side.
Thank you.
Thank you. The next question is from the line of Mumuksh Mandlesha from Anand Rathi Institutional Equities. Please go ahead.
Thanks for taking the question again. Sir, in the segmented reporting, there is some line called others in the standalone business, which is around INR 148 crore. Just can you explain what is others in the standalone business?
This is a one-time subject which has come on two fronts. One is regarding some CapEx which has 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. It is a no profit, no sale on the equipment because equipment has to be paid for. Otherwise, we might not be able to do the shifting of the plant. Second thing was we rationalized the aluminum alloy inventory, which was high in Craftsman, by transferring at cost to DR Axion. These are the two one-offs. It is not a transaction made for profit. It is not a manufacturing activity. 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. Can you explain what led to the improvement there? Going ahead for the next year, how do you see the margin for this business, sir?
See, 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 aluminum and powertrain, this is negligible CapEx, I would say. Working capital also, the total capital employed is quite low. Even though margins may be low, once we see the traction we got in Q4, which will continue into the next financial year, of course, there can be some blips quarter to quarter. Overall, we can expect that the results for FY 2026 will be better than the results of Q4 of FY 2025. 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. Also, on the storage, the static racking, we are doing good, having good traction there. As a blended company, I think we have matured as a storage solution company. This is a very difficult business. Within five years, we have come to a level that this can be really a standalone also possible storage solution business. Not that I'm implying anything. No, please do not take it that level. We have grown this business to be able to stand on its own feet now.
Great to hear that. Also on the revenue side for next year, how do you see the growth for the business, 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 don't know. EBIT, it will be already there on the this is a little we cannot divulge that because that is a quantitative information. We can give you the revenue, please.
Sure, sure, sir. Yeah.
Revenue DR for 376.
Got it, sir. Yeah. Thank you so much for this.
Yeah.
Thank you. Ladies and gentlemen, we will take that as the last question. I would now like to hand over the conference over to Mr. Srinivasan Ravi for closing comments.
I think there is a couple of one more question is there, I think.
Yes, sir. If you want, we can take that.
Yeah, we can take that.
Okay. Ladies and gentlemen, the next question is from the line of Ajox Frederick from Sundaram Mutual Fund. Please go ahead.
Hi, sir. Thanks for the opportunity. I have a couple of questions. One is on the balance sheet working capital. The OCF saw a stretch, I mean, compression due to some working capital stretch. On this consolidated basis, what is causing that, sir, for the year?
I didn't understand the question. Sorry.
The operating cash flow for the full year in consolidated basis saw compression, and that is because of a working capital stretch. What is causing that operating cash flow to compress year on year?
If it because it's a consolidated basis, it's Sunbeam, right? Sunbeam. It's not an apple-to-apple comparison because Sunbeam, we had it only for six months. That may be the reason you may be not being able to compare.
Okay. Was there any infusion of working capital in Fronberg?
Yes, there has been working capital infusion, but not in it is still the money is still not utilized. It is lying with the holding company there. It has not been infused into the company. It is still lying as cash in the holding company. We have infused, as I understand, only EUR 800,000 for the working capital.
Okay, okay. Sir, secondly.
I want to mute for a minute to just check.
Yeah, yeah.
See, okay. Now I get the point because this is a slum 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. The other movable assets are also lying with some of the working capital banks, and some are lying with the creditors totally. 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. 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 is all. Because we have paid roughly INR 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, INR 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 is what is the total deal.
Okay. Has it been accounted in working capital for us?
No, no, this is not accounted. That still is lying as cash.
Still lying as cash. Okay. Understood.
Yeah, yeah.
Okay, okay. So secondly.
It's not gone to the operating company. Yes.
Okay, okay. Then secondly on the guidance, right? We have a very strong guidance on powertrain, aluminum, and even storage business. 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. Where is this confidence coming for us to deliver 20% plus kind of a growth on an organic manner?
We have been diligently trying to diversify our customer portfolio. Now, we earlier had six customers giving 50% of our revenue and balance 50% of 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 on the company side revenue. I mean, at least this is the auto segment. No, this is the other company. Consolidated, if you look at it, the commercial vehicle portion is coming to 17%. Two-wheeler is coming to 18%. Passenger vehicle is 32%. Storage is 10%. Non-autonomy is 6%. Off-highway is 5%. And tractor is 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 the African market for both passenger car, two-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 wanted in the last two decades. India is migrating to slightly higher products now. These products are not anywhere being used in the Western world. 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 that manufacturer, that footprint in the rest of the world is reducing for manufacturing. In China, I mean, their own in Japan itself, they are downsizing our operations. Exports of vehicles are taking place from India to Europe as well as to Japan totally. Similarly, for the two-wheeler market, Indian manufacturers also are exporting to Africa. We will see that multinational companies, two-wheeler manufacturers from India also exporting to Africa. All this is leading to some sort of a growth trajectory. I will take a few names. You have Scott's been taken over by a Japanese manufacturer. This 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 do not 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 their production base here where it is required for India and a similar product is required in new developing markets like South America and Africa. That is where my confidence comes coming from. The second thing is the commercial vehicle segment has seen a lot of correction in the past totally. Now it is quite stable. 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.
You also see that the tractor market is also looking up in a way because of the monsoon and things like that. We are also having the right customers on our passenger vehicle business as Craftsman. The Sunbeam business on passenger vehicle is looking mainly towards North America. The DR Axion, you are aware that we are with the second largest PV player in the country. They are setting up a new plant also in the Western region. 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 its imports are getting replaced by Indian suppliers. That's all.
Got it. Very helpful. Thank you.
Thank you.
Thank you. 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 Taiwan suppliers, 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. This is coming from the comparison within China. For example, the aluminum capacity for castings and machining in the country is in the region of 10% of the Chinese capacity totally, which is quite small. That means there is a lot of headroom to grow. The aluminum majors across the world are in anywhere between $2 billion-$8 billion in revenue, each of them. When the Indian market is growing, the aluminum content is growing. Naturally, the lightweighting of the passenger vehicle has to happen.
While we're waiting for all that, I think we as craftsmen believe that we need to broadcast our activity. At $500,000,000 in aluminum 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. Now we are attempting a global size on the station engine business. That is, the top five suppliers in the world is what we are aspiring to be there. That sort of means multinational companies setting up shop 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 the U.S. also. Other developed countries like Korea and Japan have got a different challenge totally.
We are well poised in this matter. 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 crore, INR 150 crore as private equity as equity infusion in 2010, 2012 put together from the well-respected private equity investors at that time. Then we have raised only INR 150 crore in the IPO in 2021. We went last year with the mandate to raise the INR 1,200 crore QAP sensing the opportunity and also sensing the disruption coming from tariffs and the geopolitical situations also in Europe. We want to capitalize on all the opportunities there. During the fundraise, I had to communicate with 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. 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 three years surely. Everything is, the path is set right for that. 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.