Harsha Engineers International Ltd
NSE:HARSHA
Harsha Engineers International Ltd
Harsha Engineers International Ltd. engages in the manufacture of precision bearing cages. The company is headquartered in Ahmedabad, Gujarat. The company went IPO on 2022-09-26. The firm offers a diversified suite of precision engineering products across geographies and industries. Its business comprises of engineering and solar EPC business. Its engineering business manufactures and sells bearing cages to customers who primarily operate in the automotive, aviation and aerospace, railways, construction, mining, renewable energy, agriculture and other industrial sectors. The company manufactures a range of brass, steel and polyamide bearing cages, stamping components and bronze bushings. Its production facilities for the engineering business are located in India, China and Romania. Its solar EPC business provides complete comprehensive turnkey solutions to all solar photovoltaic requirements. The company is classified into ground mount projects; roof top projects; and operations and maintenance of ground mount and rooftop projects.
Harsha Engineers International Ltd. engages in the manufacture of precision bearing cages. The company is headquartered in Ahmedabad, Gujarat. The company went IPO on 2022-09-26. The firm offers a diversified suite of precision engineering products across geographies and industries. Its business comprises of engineering and solar EPC business. Its engineering business manufactures and sells bearing cages to customers who primarily operate in the automotive, aviation and aerospace, railways, construction, mining, renewable energy, agriculture and other industrial sectors. The company manufactures a range of brass, steel and polyamide bearing cages, stamping components and bronze bushings. Its production facilities for the engineering business are located in India, China and Romania. Its solar EPC business provides complete comprehensive turnkey solutions to all solar photovoltaic requirements. The company is classified into ground mount projects; roof top projects; and operations and maintenance of ground mount and rooftop projects.
Revenue Growth: The India Engineering business reported strong revenue growth of 17.4% year-over-year in Q3, driven primarily by higher volumes and strong domestic and export demand.
Margins Impacted: EBITDA margin in India Engineering was 23.8% as adjusted for a one-time labor code provision, but reported margin was 21.7% due to this exceptional item. Commodity price increases, especially copper, and losses in new facilities also pressured margins.
China Expansion: Announced a significant brownfield expansion in China with an investment of about $10 million, aiming to double revenues in that market by FY '29.
Romania Challenges: Romania operations faced operating losses due to a steep rise in copper prices and lag in cost pass-through, but management expects improvement with ongoing cost controls and business mix shifts.
Segment Performance: Bronze Bushing and stamping businesses showed strong growth; the solar division delivered notable results as well.
Guidance Maintained: Management reaffirmed their guidance of a little over 10% revenue growth for FY '26, with expectations for higher margins and a stronger bottom line in Q4.
CapEx & Ramp-Up: Cumulative CapEx of around INR 100 crores in 9 months; Advantek and other new facilities are expected to ramp up to optimal utilization over two years.
