Posting for the Educational Purpose only
Trishakti Industries ltd - Understanding the companies business model - How are they able to generate the revenue ?
Trishakti Industries focuses on asset heavy business so it first uderstands the requirement of the client in terms of how much machinery is required, what is the duration for which machine is required ?
After it understands the client requirement it places a purchase order from its supplier like say XCMG.
The funding of the machinery is being done either through Internal Accruals or through debt.
After Purchasing the Machinery for its client it than send the machinery to the client site simply deploy it to the site After the Deployment of machinery there will be utilization of the machinery where both trishakti and its client duration for which the machinery will be used and will be able to generate rent for trishakti industries ltd,
After the deployment once client starting using the machinery it will pay rent to trishakti industries ltd and trishakti industries will start generating a gross yield of 3% on machinery given on rent and net yield of 2.2% is generated by trishakti industries ltd.
4 Metrics Investor in Infrastruture equipment rental business should look at ?
a) Fleet Utlization - All the machinery being purchased by trishakti here are being deployed and used by the client in this case for trishakti all of its machine are being used by all of its client and none of the machinery are left unsed so here the fleet utilization for the company is 100% comparing it with the industry average of 78% as per the Q1FY27 Presentation.
b) Rental Yeild - how much rental revenue the trishakti industries is able to generate gross yield vs net yield ?
Gross yield simply states the how much rental yield company is able to generate say 3% on machinery costing 100 cr so 3 cr company is able to generate as gross yield and net yield considers operating cost for the machinery, oprating cost of maintaining the machinery is deducted from gross yield and the remaining amount is considered to be as net yield say 2.2% PM is the net yield for trishakti industries ltd.
c) EBITDA - how much operating profit company like trishakti industries is able to gerarate after dedcuting the operating expenses here in this case for trishakti industries operating profit is between 60 - 65% better than the industry average of 40%.
Growth Plans ahead of Trishakti Industries ltd -
Revenue Target for FY27 is expected to be 60 - 65 cr as per the guidance given by the management in the concall, Revenue for FY28 & FY29 is expected to be 120 cr and 180 cr as per the forecast taken based on the Assumption of Capex * Gross monthly yield.
Management is expecting the EBITDA Margin Target of Above 60% and ROCE Target of 22 - 25%.
Plan to Deepen Wind Energy Business with 900 + Tons of Machine required via 125 cr Purchase order with XCMG.
Explaining potential expansion opportunity in UAE and Saudi Arabia subject to management approval.
Funding for growth will be done via internal accruals as well by taking debt.
Financial Performance for FY26 -
Total Income is at 32.45 cr which grew 73% compared to last year which was 1875 for FY25,
EBITDA for FY26 is at 19.94 cr with EBITDA Margin of 61.4% and management is expecting the EBITDA Margin to be above 60%.
PAT for FY26 is at 7.45 cr with a PAT Margin of 23%.
Total Asset grew 4.23 Times from 68.35 cr to 289.15 cr.