Affordable Robotic & Automation Ltd Q2 FY2025 Concall Summary

Key Takeaways

• H1 revenue declined, profitability turned negative: Standalone H1 FY25 revenue fell to 41.46 crore from 42.69 crore in H1 FY24, while consolidated EBITDA, PBT and PAT all swung into the red.
• Order book swelled to ₹190 Cr: The total order book jumped from ~₹140 Cr a year ago, driven by new bookings of 139.31 crore that far outpaced deliveries of 43.89 crore.
• RaaS fundraising and global expansion underway: The company is raising \$15M in an A-series round, has started Europe sales activities, and is opening a new micro factory in December 2024.
• New product launches target niche automation: Three autonomous driverless forklifts and a new low-volume-production welding robot were launched, alongside in-house capacity additions for car parking.
• What to watch next quarter: Whether the 30% minimum growth target for the current year remains credible given the H1 revenue decline, and how quickly the swollen order book converts into deliveries.

Financial Performance

• Top-line contraction: Standalone H1 FY25 revenue slipped to 41.46 crore from 42.69 crore in H1 FY24, a decline that management did not quantify further.
• Profitability wiped out: Consolidated EBITDA margin worsened to -21.72% from -10.75% in H1 FY24, and both standalone and consolidated EBITDA, PBT and PAT turned negative in H1 FY25 after being positive in the prior-year period and full FY24.
• Order book provides a cushion: The total order book rose to INR 190 Crores from ~INR 140 Crores a year ago, with new bookings of 139.31 crore in H1 dwarfing deliveries of 43.89 crore and pushing the closing order book to 146.9 crore.

Order Book & Vertical Dynamics

• Warehousing vertical rebounded from zero: The warehousing vertical opened the year with no orders and then booked 35.7 crore in new orders, a swing that contributed materially to the order book build.
• Welding Automation added EV customers: The vertical acquired new customers in the EV space, a diversification beyond its traditional base.
• Car parking capacity expanding: The company is adding a few machines in-house to improve capacities in the Automated Car Parking vertical, where it expects to double revenues in the next three years.

RaaS: Fundraising, Geography & Team Build-Out

• A-series raise of \$15M: ARAPL RaaS is raising \$15M in an A-series round, with the capital likely earmarked for the US and Europe push.
• US and Europe go-to-market taking shape: Europe sales activities have begun, a new micro factory starts in December 2024, and the company booked \$4M in RaaS orders.
• Leadership and field teams hired: A COO for India (Mr. Nitin Gupta) and a COO for Europe (Mr. Harsh Khera) were onboarded, along with a Marketing Head for both the East and West Coasts in RaaS USA and a head of Battery Development. The US team now totals 9: Marketing 4, Deployment 3, Pre-sales 1, led by Co-Founder Mr. Robinson Philipose stationed in the US.

Product & Capacity Investments

• Three autonomous forklifts launched: The company launched three autonomous battery-operated forklifts in the US, expanding its RaaS hardware portfolio.
• New welding robot for low-volume production: A new robot type capable of low-volume production was launched in the Welding Automation vertical, targeting a segment where flexibility matters more than throughput.
• In-house capacity additions: Beyond the car parking vertical, the company is adding machines in-house, though the scale and cost of these additions were not disclosed.

Guidance & Commitments

Key Metrics