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    Anlon Tech

    ANLON
    Services·17 May 2025
    Management Summary

    Anlon Technology Solutions Limited reported strong financial performance for FY25, with significant revenue and profit growth driven by accelerated H2 performance and the successful delivery of equipment from its new manufacturing segment. The company expanded into AI/Digital Solutions and secured a robust order book of ₹80 crores. Despite strong growth, working capital management remains a focus, with increased receivables and a lower cash balance at year-end.

    Highlights

    5

    • Revenue from operations increased 43.4% YoY to ₹50.23 crores for FY25, driven by increased volumes and market traction.

    • H2 FY25 revenues accelerated significantly, rising nearly 79% compared to the same period last year.

    • EBITDA grew 47.3% to ₹10.25 crores, with margins slightly improving to 20.4%, demonstrating disciplined execution despite rising input costs.

    • PAT for FY25 reached ₹6.49 crores, a 43.7% growth over FY24, and EPS improved from ₹8.06 to ₹10.38.

    • Successfully completed testing and acceptance of complex airport infrastructure equipment, with 7 machines manufactured in India and 4 vehicles cleared by Airports Authority of India.

    Concerns

    3

    • Net cash used in operating activities was ₹16.73 crores due to higher working capital requirements, including increased inventories and receivables.

    • Cash and cash equivalents closed at ₹0.295 crores, a significant decrease from ₹1.35 crores in FY24.

    • Initial manufacturing efforts for complex machines faced lower margins due to sourcing struggles and setup costs, though management aims for improvement.

    What Changed1

    vs Q2 FY26

    Guidance items8 → 4 (-4)

    Key financials

    Single quarter

    10 metrics
    1. 01Revenue from Operations₹50.23 Cr+43.4%YoY
    2. 02H2 Revenue Growth—+79%YoY
    3. 03EBITDA₹10.25 Cr+47.3%YoY
    4. 04EBITDA Margin20.4%
    5. 05EBIT₹9.67 Cr+43%YoY

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹10.34 crores

    Liquidity

    Cash ₹0.295 crores

    Cash and cash equivalents closed at ₹0.295 crores, down from ₹1.35 crores in FY24. The company generated ₹26.01 crores net cash from financing activities, supported by QIP and bank facilities.

    Guidance & targets

    4
    CategoryTargetPriority
    Order Book
    Make in India Vehicles
    50 vehicles
    		Medium
    Market Growth
    New Airports
    30-40 airports
    		Medium
    Market Growth
    High-Rise Building Rescue Machines
    1/10th of 722 municipal corporations
    		Medium
    Indigenization
    Quality, Design, Cost Optimization
    Further sharpen quality, optimize design, reduce cost
    		High

    What to watch in Q1 FY26

    5

    Working Capital Improvement

    next few months
    Current₹16.73 crores net cash used in operating activities; ₹18 crores receivables; ₹0.295 crores cash & equivalents
    TargetLiquidation of receivables and inventory, improved cash position, potential limit extensions

    Why it matters

    Effective working capital management is crucial for funding ongoing growth and operations, especially with increasing manufacturing revenue.

    So basically Rahil, if you see the balance sheet, the billing what we've done in H2, some of the things which falls in the March month so which is due for the receivable at that time. So you see there is Rs.18 crores value of the receivables which is there in the balance sheet. And apart from that there is an amount which we have put in for the inventory which is in the form of the final stage. So all these going to be liquidated in a few months' time.

    Risks & concerns

    2
    RiskSeverity

    Working Capital Stress

    Net cash used in operating activities was ₹16.73 crores, and cash and cash equivalents dropped to ₹0.295 crores due to higher working capital requirements, including ₹18 crores in receivables and increased inventory. — Analyst acknowledged

    medium

    Initial Lower Manufacturing Margins

    Initial manufacturing efforts for complex machines resulted in lower margins due to sourcing struggles and setup costs, but management expects improvement through indigenization. — Analyst acknowledged

    low

    Q&A highlights

    7

    “The service requirements and spare parts requirements, we can classify into three -- Service, Consumables and Spare Parts. This vehicle being a very special vehicle that uses extremely high pressure for the circuits, it's normal practice that none of the customers would want to service this vehicle and most of the airports would ask us to even operate the machine. This requirement will kick start right from the first day of the induction into operation... it's all together calculated at about 7% to 8% of the value of the vehicle.”

    Clarifies the immediate and recurring revenue potential from after-sales services for their specialized equipment.

    asked by Rahil Dasani

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Financial Performance in FY25

    Anlon Technology Solutions Limited reported robust financial results for FY25, with revenue from operations increasing by 43.4% to ₹50.23 crores. This growth was significantly driven by a nearly 79% YoY increase in H2 revenues. Profitability also saw substantial improvement, with EBITDA growing 47.3% to ₹10.25 crores, and PAT rising 43.7% to ₹6.49 crores, leading to an EPS of ₹10.38 for the year.

    02

    Milestone in Manufacturing and Indigenization

    The company achieved a major milestone by delivering equipment worth nearly ₹11 crores from its manufacturing and assembly segment in H2 FY25. Anlon successfully tested a complex airport infrastructure machine in a new Indian airport, with 7 machines manufactured in India using German technology and over 60% indigenized components. Four vehicles have also received factory acceptance test clearance from the Airports Authority of India.

    03

    Expansion into AI and Digital Solutions

    Anlon is venturing into new segments, including Artificial Intelligence and Digital Solutions. A proof-of-concept for an augmented reality-based 3D wave finding solution is underway for a major Indian airport. Additionally, the company is preparing a virtual reality training program for the Mumbai Fire Brigade, showcasing its commitment to leveraging advanced technology for safety solutions.

    04

    Robust Order Book and Future Growth Drivers

    The company reported a strong order book of ₹80 crores, excluding traditional AMC and spare parts business. This includes ₹48 crores in new orders received in the last four months. Management noted customer encouragement for 50 more 'Make in India' vehicles, representing about 60% of coming years' orders. Key growth areas identified include civil aviation (targeting 30-40 new airports), petrochemicals, and civil defense (high-rise building rescue machines for municipal corporations).

    05

    Working Capital Management and Liquidity

    Despite strong revenue growth, the company experienced a net cash outflow of ₹16.73 crores from operating activities, primarily due to higher working capital requirements, including ₹18 crores in receivables and increased inventory. Cash and cash equivalents stood at ₹0.295 crores at year-end, down from ₹1.35 crores in FY24. Management expects receivables and inventory to be liquidated in a few months and may explore limit extensions for future orders.

    06

    Strategic Focus on Indigenization and Margin Improvement

    Anlon's strategy involves further sharpening the quality, optimizing the design, and reducing the cost of its over 60% indigenized components, with an aspiration for German partners to source from them. While initial manufacturing margins were impacted by sourcing challenges and setup costs, the company is targeting margin improvement through continued indigenization and operational efficiencies.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.