AksharChem (I)

- The company raised Rs.69 crores through Qualified Institutional Placement (QIP) to fund its Rs.175 crores CAPEX. - The funding plan for the expansion is primarily through: - Utilization of the QIP proceeds first, - Then internal accruals, - Debt if needed in the last stage of expansion. - Currently, the company's total debt as of September 2017 is Rs.1 crore with a debt-to-equity ratio of 0x. - No changes have been made to the above funding program. - The company may maintain a financial "war chest" for potential future expansion plans if current funds are unutilized. - No explicit mention of upcoming new fundraising through additional debt or equity beyond the above plans was made.

- AksharChem is undertaking a CAPEX of Rs.175 crores focused on Specialty Chemicals, Dyes Intermediates, and Organic Pigments. - Expansion includes a 10,000 tons annual capacity for Specialty Grade Precipitated Silica targeting the tire industry, expected to generate ~Rs.80 crores turnover at full utilization. - Incremental turnovers expected: Rs.50 crores from H Acid expansion, Rs.20 crores from Brownfield Pigment Green expansion, Rs.70-80 crores from Silica expansion, and ~Rs.60 crores from Greenfield Pigment Green project, totaling Rs.200-250 crores. - CAPEX funded by Rs.69 crores QIP proceeds, internal accruals, and possible debt at the last stage. - Expansion benefits: Rs.70 crores turnover from H Acid and Pigment Green expansions by FY19; Rs.130-140 crores from Silica by FY20. - Pigment Greenfield expansion at Dahej planned. - Possible long-term consideration of forward integration into Dyestuffs; no current plan, estimated ~3 years for capacity setup if initiated. - Effluent treatment plants included for polluting products like H Acid; environment expenses expected to stay around 4-5% of revenue.

- Revenue expected to remain flat in FY’18 due to market conditions and dollar/rupee rate. - Anticipated revenue growth of 15-20% in FY’19 with expanded capacities coming into play. - Expanded capacity turnover expected approximately: - Rs.50 crores from H Acid - Rs.20 crores from Brownfield Pigment Green expansion (from Q4 FY’18) - Rs.70-80 crores from Precipitated Silica (specialty inorganic product) - Rs.60 crores from Greenfield Pigment Green expansion (Dahej) - Total incremental turnover post expansions around Rs.200-250 crores. - Vinyl Sulphone volume growth 9% YoY; CPC Green volumes expected to rise with expansions. - Vinyl Sulphone capacity utilization can improve from current ~83-84% to ~87-88%. - Pigment (Green) capacity utilization expected to improve from 91% towards 95%.

- Revenue growth of 15-20% expected in FY’19 due to improved market conditions and expanded capacities (Page 2). - Expanded capacities (H Acid, Precipitated Silica, CPC Green) expected to add ~Rs. 200-250 crores in revenue over next 2-3 years (Pages 4, 8). - EBITDA margins expected to sustain at 18-20% over the next 3-5 years, supported by higher Chinese costs and differentiated specialty grades (Page 11). - Profit after tax margins around 19-20% EBITDA level anticipated in second half of FY’18 and beyond (Pages 6,10). - New product revenues: Violet 23 expected to generate Rs. 20-25 crores in FY’19 (Page 5). - The company anticipates stable PAT margin improvement given pricing power and cost pass-through ability (Page 3, 11).

The transcript from AksharChem India Ltd.'s Q2 & H1 FY18 Earnings Conference Call does not provide specific details on the current or expected order book or pending orders. However, relevant points related to business outlook include: - The company expects revenue growth of 15-20% in FY19 driven by expanded capacities. - There is ongoing capital expenditure of Rs.175 crores in Specialty Chemicals, Dyes, Intermediates, and Organic Pigments with completion expected within 12 months. - Brownfield expanded capacity of CPC Green is expected to contribute revenue starting Q4 FY18. - The company is confident of margin sustainability (18-20%) for the next 3-5 years based on cost advantages and pricing power. - Discussions mention steady or increasing demand in key markets (South Korea, Taiwan, Japan, Europe). No explicit numbers or timeline details on the current order book or pending orders are disclosed.