Aarti Drugs Ltd

- The company plans a capex of INR250 crores to INR350 crores for FY '24, funded through internal accruals and some long-term debt. - No explicit mention of new equity fundraising in the provided information. - The majority of the INR600 crores capex is expected to be completed by FY '24. - The company continues to evaluate multiple opportunities and may make strategic or tactical investments if required. - Current leverage is comfortable at around 0.51x as of March 31, 2023. In summary, the company is financing its ongoing capex mainly via internal accruals and some long-term debt, with no clear announcement of fresh equity fundraising.

- The company is undertaking a major capex program of approximately INR600 crores, expected to be largely completed by FY ’24. - Capex allocation: Around 40%-40% split into two Greenfield projects in Tarapur and Sarigam, focusing on dermatology and specialty chemicals. - Brownfield expansions include incremental expansions (e.g., ~40% increase in Metformin capacity) and de-bottlenecking facilities with INR40-50 crores allocated. - New oral oncology manufacturing facility in Baddi recently completed, targeting regulated and emerging markets, with expected revenues in 12 months. - Focus on backward integration to reduce costs and improve margins, with about INR120 crores to be invested in FY ’24. - Tarapur dermatology Greenfield capex expected to complete by end of Q2 FY ’24; specialty chemicals capex by end of Q1 FY ’24. - Additional investments planned in process improvements, R&D, renewable energy, and new technology to improve efficiency and environmental impact.

- Targeting 15% to 20% volume growth internally for the near term (Page 15). - Expecting double-digit value (revenue) growth despite negative price variation (Page 11). - Revenue potential post-expansion for API and specialty chemicals standalone business estimated at INR 4,000 crores (Page 13). - New formulation capacity capex expected to add about INR 200 crores revenue, targeting over INR 500 crores revenue from formulations (Page 12). - Prices expected to be lower in FY '24 versus FY '23, focusing growth more on volumes than price increases (Page 9 and 14). - Volume growth for APIs in Q4 FY '23 was 9%, but full-year FY '23 volume growth was low (~1.5%) due to macro factors; demand expected to normalize and grow going forward (Page 7). - Price stabilization anticipated, with EBITDA margins expected to return to 14%-16% once stable (Page 16).

- FY24 EBITDA margins expected to be around 14% to 16%, improving from last year’s subdued margins. - Company targets a 25% to 35% jump in standalone bottom line earnings in FY24. - Volume growth target for FY24 is around 15% to 20%, driving revenue growth despite weak price realization. - With backward integration and specialty chemicals expansion, EBITDA margins target to reach 18% within 3-4 years. - New dermatology and oncology capacities expected to add approximately INR 200 crores revenue and help scale-up margins. - Full impact of capex (around INR 300 crores with INR 120 crores for backward integration) to reflect post FY24, further improving margins. - Company aims for double-digit revenue growth in FY24 driven by volume growth despite flat/slight decline in prices. - Shareholder payouts maintained at ~25% of PAT with potential for buybacks, supporting investor returns.

The transcript does not provide specific details about the current or expected order book or pending orders for Aarti Drugs Limited. However, some relevant points that can be inferred regarding demand and sales outlook include: - The March quarter showed strong antibiotic sales, indicating stabilization after inventory fluctuations. - Volume growth targets are around 15-20% for the current fiscal year, aiming at double-digit value growth despite pricing pressures. - The company expects 50% export and 50% domestic market ratio to continue with capacity expansion. - New filings and approvals in regulated markets (Europe, North America, Latin America) are anticipated to contribute significantly to sales in the next 12-18 months. - No specific order book or pending orders were disclosed during the call.