Aarti Industries Ltd

- There is no explicit mention of any new fundraising through debt or equity in the provided transcript. - The company is undertaking significant capex of INR 1,500-1,800 crores in FY25 and expects similar or upward capex in FY26, primarily funded through ongoing resources. - Chetan Gandhi mentioned that debt levels are not expected to reduce on an absolute basis due to ongoing capex, but working capital optimization efforts are underway. - The management did not indicate any plans for new equity fundraising. - Cost of debt is currently around 7.5%-8% and expected to remain similar next year, indicating reliance on existing debt facilities. - Overall, the company seems to be managing expansion via internal accruals and existing debt rather than new external fundraising at this time.

- FY'24 capex was over INR 1,280 crore on project expansions. - Planned capex for FY'25 is INR 1,500-1,800 crore. - Major ongoing expansions include Acid Phase-2 Capacity Expansion, Specialty Chemicals Blocks, Ethylation, Nitro Toluene capacities, and asset upgradation. - Phase-1 of the Chloro Toluene project is expected to commence by FY'26. - FY'26 capex likely to exceed INR 1,000 crore but exact numbers are yet to be finalized. - Over the next two years, total planned investment is approximately INR 3,000-3,500 crore. - More than 50% of FY'26 capex will be allocated to the new site expansion at Jhagadia, including multipurpose and Chloro Toluene plants. - Capex is largely productive, focused on revenue growth and backward integration, with minimal maintenance capex. - Growth initiatives aimed at strengthening the company’s position in the global chemical value chain.

- Volume growth for FY'25 is expected between 20% to 30%, with growth starting from Q1 and accelerating substantially in the second half (Q2 onwards). - Expansion projects including Acid Phase-2, Ethylation, Nitro Toluene, and specialty chemical blocks are expected to be commissioned in FY'25, contributing to volume and revenue growth. - Chloro Toluene and downstream product plants are planned to be commissioned by FY'26, adding higher-margin products and improving EBITDA margins. - Long-term contracts, including MMA and Deepak Fertilizers contracts, are expected to ramp up, increasing contract revenues significantly in FY'25 and beyond. - Agrochemical demand is expected to remain muted in the first half of calendar year 2024 and improve towards FY'25. - Overall, gradual recovery in discretionary and non-discretionary segments will support sustained sales and volume growth over the next 2-3 years.

- EBITDA guidance for FY25 is maintained at Rs. 1,450-1,700 crore, supported by volume ramp-ups and operating leverage. - Volume growth expected to start from Q1 FY25, with stronger growth from Q2 onwards due to new project commencements. - Margins expected to improve structurally from FY26-27 with increased sales of value-added Chloro Toluene products. - Existing asset expansions could add another 10-15% EBITDA (~Rs. 2,000 crore potential). - Domestic demand in agrochemical expected to recover strongly in the second half of FY25. - Capex of Rs. 1,500-1,800 crore planned for FY25 focusing on capacity expansions and backward integration supporting future growth. - Debt levels may remain stable or slightly higher due to ongoing capex, with cost of debt around 7.5%–8%, expected to remain stable. - Tax rate expected around 12-16% for FY25 and FY26.

- MMA long-term contract: INR 900 crores revenue in FY'24, expected to ramp up to INR 1,500 crores in FY'25 (50%-60% YoY increase). - Deepak Fertilizers contract: INR 8,000 crore contract over 20 years, implying about INR 400 crores annual revenue. - Nitro Toluene and downstream volumes are partially tied up with customers, with commissioning expected by Q2 FY25. - Ongoing projects such as Acid Phase-2, Ethylation expansion, Nitro Toluene expansion, specialty chemicals blocks are scheduled for FY25 commissioning. - Chloro Toluene project expected to start initial phase by FY26. - Sustained recovery in discretionary segments and emerging revival in non-discretionary portfolio expected to drive order volumes and backlog ramp-up. - Volume growth expected post-FY25 with expansion in capacities and new product line ramp-up. Overall, order backlog and contracts indicate strong revenue visibility with gradual ramp-ups over FY25 and beyond.