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ET learns that the company will invest around Rs 150 crore in the coming years, split equally between auto and industrial tooling facilities where it manufactures files, drills and hand tools. This capital expenditure is likely to be financed primarily from internal sources and the company seeks to maintain its debt-free position. An email sent to the company remained unanswered.
JK files Has an asset turnover of three times, which translates into incremental revenue of around ₹450 crore. The company is set to hit soon IPO way. According to the draft red herring prospectus filed with the markets regulator, the company has an installed capacity of 8.2 million ring gear at the end of June 2021. The company plans to raise around 500-600 crores which will be mainly used for bringing down. Debt of its parent company Raymond.
The ring gear capacity is expected to grow by 4-5 million over the next five years and yields on an average between ₹150 and ₹250 per unit.
Organic growth and new order wins for new passenger car programs are expected to keep ring gear facilities utilization above 80% and return of capital employed (ROCE) to remain stable despite new investments. The share of the automotive division in total revenue grew by nearly 500 basis points to 39-40% over the last five financial years, driven by new order wins and increased penetration of automatic variants requiring flexiplates.
In Ring Gear segment, the company has 52-56% market share in Passenger Vehicle and 46-50% market share in Commercial Vehicle segment. India,
The company supplies ring gears to Mahindra & Mahindra and leads highway manufacturers globally.
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