TTToyota Tsusho IndiaExecutive Cockpit

CFO — Finance, Cash & Capital

Quality of earnings, 13-week cash, leverage runway, working-capital unlock and the levers behind margin quality and low-leverage discipline.

Toyota Tsusho India Private Limited · FY25 (Mar'25, MCA-filed)
India arm of Toyota Tsusho — the Toyota Group's general trading company (sōgō shōsha)
238 employees · 10+ offices, service centres & hubs · 20 export markets
Executive read· the answer, then the moves

Net debt of ₹109 Cr sits at just 1.00× EBITDA against the ~3.0x ceiling — a strong, low-leverage balance sheet (D/E ~0.22) held while funding growth capex. For a high-turnover trading house, inventory + receivables funding is the real capital story: normalizing DSO to 45d releases ≈ ₹87 Cr and clears ₹45 Cr of overdue receivables, protecting the record ₹78 Cr PAT earned on a thin ~2.4% EBITDA margin.

6 of 8 headline metrics improving vs prior · still off target: Total Revenue ₹4,529 Cr vs ₹4,800 Cr, EBITDA ₹109 Cr vs ₹125 Cr, EBITDA Margin 2.4% vs 2.8%

Do now — ranked by urgency
  1. 1
    Steel / aluminium price volatility on thin trading marginAct now
    Why it matters

    Pass-through pricing & hedging; shift mix to value-added supply, recycling & higher-margin lines.

    What's driving it
    • Trading margin
    • Signal: Alert
    FYI

    Metals is ~40% of revenue at ~2.0% EBITDA; a commodity-price swing compresses an already-thin spread.

  2. 2
    Pull working capital — drive DSO 52→45dWatch
    Why it matters

    Closing the DSO gap releases ≈ ₹87 Cr of one-time cash — the key capital lever for a working-capital-intensive trading house; ₹45 Cr is already >60 days overdue and at collection risk.

    What's driving it
    • DSO 52d vs 45d target
    • Overdue (>60d) ₹45 Cr of ₹645 Cr AR
    FYI
    • Division-level unlock to a 50d stretch ≈ ₹14 Cr
    • Owner: Treasury
  3. 3
    Working-capital intensity is the real capital storyWatch
    Why it matters

    Tighten debtor days, accelerate collections & optimise inventory to free working capital.

    What's driving it
    • Cash Conversion Cycle
    • Signal: Alert
    FYI

    Total assets ₹2,060 Cr on ₹4,529 Cr sales; debtor days 52 + inventory funding tie up working capital.

  4. 4
    EV / battery localisation (early) — PlannedWatch
    Why it matters

    Unbanked EBITDA & capex-ROI until captured.

    What's driving it
    • ₹8 Cr run-rate targeted
    • Signal: Savings program
    FYI
    • EV charger & battery-recycling localisation — optionality, not yet scaled in India.
    • Owner: CFO
EBITDA
₹109 Cr
2.4% margin · record PAT ₹78 Cr
Total assets
₹2060 Cr
asset turnover ~2.2× · working-capital-intensive
Capex headroom to covenant
₹218 Cr
≈ 1.5 yrs of growth capex within the ~3.0x ceiling
Working-capital unlock
₹87 Cr
DSO 52→45d target
Quality of earnings

Reported → Run-rate EBITDA

₹17 Cr of normalization + annualization to a run-rate ₹126 Cr — the audit-grade walk.

Driver bridge

PAT — prior to current year

Trading margin / mix quality and working-capital efficiency plus the new-energy & recycling ramp vs. the −5% auto-demand revenue softness — revenue down, profit up to a record ₹78 Cr.

Treasury

13-week direct cash flow forecast

Above minimum

Net weekly cash (bars) and ending cash (line) vs. ₹30 Cr minimum. Forecast trough: ₹50 Cr.

₹50 Cr
Opening cash
₹1161 Cr
13-wk collections
₹1147 Cr
13-wk disbursements
₹64 Cr
Closing cash
Capital structure

Leverage runway vs. covenant

Net Debt/EBITDA deleveraging path against the 3.0x lender covenant ceiling.

Headroom = capex firepower

Capex capacity

Net-debt headroom to 3.0x
218 Cr
1.5 yrs of ₹150 Cr/yr growth capex
Net Debt / EBITDA1.0x
Covenant Headroom2.0x
DSCR3.6x
Free Cash Flow₹40 Cr
Where the cash is trapped

Working-capital cash unlock

14 Cr opportunity

Normalizing laggard divisions to a 50-day DSO releases ~₹14 Cr of one-time cash.

Steel Service Centre (TTSS)52d
6 Cr
Circular Economy & Recycling54d
4 Cr
Rare Earths (TREI)55d
3 Cr
Green Energy (CleanMax Toyotsu)58d
1 Cr

Concentrated in the newer engines (Rare Earths TREI, Circular Economy & recycling, Green Energy) and the export book where project-milestone billing and ramp-phase terms lag the mature steel-service & JIT-parts book — the fastest cash win this fiscal year.

Revenue quality

Recurring / anchor supply engine & margin

Contracted Toyota-group / OEM supply revenue growth and where EBITDA is generated (MODELED ~64% of revenue).

Contracted / Recurring Supply Revenue
₹2,900 Cr
▲ 5.5% vs priorTarget ₹3,300 Cr
Recurring / Anchor Revenue %
64.0%
▲ 3.2% vs priorTarget 70.0%
Revenue Retention
97.0%
▼ 2.0% vs priorTarget 101.0%
Contract Renewal / Retention
96.0%
▲ 2.1% vs priorTarget 98.0%
Recurring supply engine

Recurring supply revenue bridge

Trend

Recurring supply revenue growth

By division

EBITDA margin

Collections

AR aging

Total AR ₹645 Cr

Current days380 Cr
1-30 days150 Cr
31-60 days70 Cr
61-90 days28 Cr
90+ days17 Cr

Overdue (>60d) = 45 Cr at collection risk.

By account

Receivables & credit watch

Accounts ranked by DSO and credit/churn risk.

AccountRevenueDSORepeatCredit/Churn
Metals & industrial customers₹560 Cr55d99%Medium
Tier-1 / component makers₹640 Cr54d103%Low
Other OEMs (Hyundai / Tata / …)₹700 Cr52d101%Medium
Maruti Suzuki₹620 Cr50d102%Low
Chemicals / electronics customers₹359 Cr50d104%Low
Toyota Kirloskar Motor (TKM)₹1650 Cr48d100%Medium
Entities

Capability / group-entity economics

EBITDA growth, DSO normalization and group-integration capture (as-established → current).

Capability / entityEst.RevenueEBITDADSODigitalSynergyStatus
Chemicals & Electronics (NEXTY)2008₹470 Cr2% → 20 Cr6050d92%84%Integrated
Rare Earths (TREI)2009₹210 Cr5% → 46 Cr7055d78%66%In progress
Auto Parts & JIT Logistics2010₹1360 Cr3% → 35 Cr5850d96%90%Integrated
Steel Service Centre (TTSS)2015₹1180 Cr3% → 36 Cr6252d90%86%Integrated
Circular Economy & Recycling2015₹320 Cr4% → 40 Cr6554d70%62%In progress
Airbags & Safety (TASI)2016₹260 Cr6% → 26 Cr5548d88%80%In progress
Green Energy (CleanMax Toyotsu)2025₹60 Cr18% → 12 Cr6058d45%30%In progress
Supply

Principal & supplier terms & risk

Principal / supplier spend, DPO (working-capital lever), delivery and risk.

SupplierCategorySpendDPOOTIFScoreRisk
Steel & metals producers (domestic + import)Steel & metals₹1700 Cr45d95%86High
Toyota-group / Japanese parts principals (JIT / CKD)Auto parts & CKD₹1150 Cr40d97%90Medium
Chemicals & materials principalsChemicals & materials₹550 Cr50d93%85Medium
Electronics / semiconductor principals (NEXTY)Electronics & semiconductors₹380 Cr55d92%84High
Logistics & freight partners (TTBIL / TVSTTS)Logistics & freight₹300 Cr42d96%87Low
Machinery / equipment & energy OEMsMachinery & equipment₹230 Cr48d91%83Medium