Antony Waste Handling Cell Ltd

- Incremental debt will be borrowed only after bagging new contracts that generate future revenue; no existing plan to raise debt without contract wins. - For Construction & Demolition (C&D) contracts, debt can be as high as 90% of capital employed due to easy vehicle financing. - Waste processing projects typically require around 70% debt and 30% equity, often supported by capital grants and viability gap funding. - Recent increase in long-term borrowings (from Rs.102 crores in FY22 to Rs.307 crores in FY24) mainly due to the 14 MW Waste-to-Energy project in Pimpri-Chinchwad. - Company aims to be debt-free in the next four years if no further contracts are bagged and cash flows remain stable. - No specific mention of imminent equity fundraising; focus is on managing debt only after securing projects.

- Current year capex is planned at around Rs.20 crores, plus Rs.5-7 crores for tire and car recycling projects. - Company decided to buy land (instead of long-term lease) in MIDC Industrial Park near Mumbai for an integrated site for vehicle scrapping and tire recycling. Deal expected to close soon. - Investment for vehicle scrapping and tire projects is estimated at Rs.20-28 crores, with an additional Rs.8 crores possible for scaling up the entity. - Incremental debt will be raised only after securing new revenue-generating contracts. Debt can be as high as 90% of capital for C&D (Collection & Debris) contracts and around 70% for large-scale waste processing projects, supported by capital grants and viability gap funding. - No upfront asset procurement before contract wins; borrowings and investments follow contract awards to maintain asset-light models where possible.

- Expected core revenue growth of 14% to 18% in FY'25, excluding compost and RDF sales (Page 8). - Incremental revenue from new contracts like Panvel, CIDCO biomining, and Construction & Debris (C&D) business contributing to growth (Page 12). - Six months of revenue anticipated from the new C&D project, with annualized revenue around Rs.30 crores (Page 8). - Market for Municipal Solid Waste (MSW) and related segments expected to grow significantly due to urbanization, real estate development, and increased focus on waste processing (Pages 15-16). - Waste-to-Energy projects gaining traction, further expanding processing market size (Page 16). - Additional large Collection & Transportation contracts likely to close within the current quarter, adding to revenue (Page 6). - Overall, a combination of new contract wins and expanded market segments expected to drive sharper growth than the past decade (Pages 15-16).

- Core revenue growth guidance for FY'25 is 14% to 18%, excluding compost and RDF sales, which are expected to increase sharply in H2. - The company anticipates around 18% growth on the top line with EBITDA margins maintained at 23%-24%. - Incremental revenue growth expected from projects in Panvel, CIDCO biomining, C&D business, and a full year of the Waste-to-Energy (WTE) project. - Increased operational efficiency and higher tipping fees are supporting revenue growth. - Interest and depreciation costs have risen due to new capex (e.g., WTE project), which may limit bottom-line growth in the near term despite EBITDA growth. - Debt is expected to be managed prudently, with incremental borrowing only after securing new contracts. - Market segments like MSW collection & transportation, processing, and C&D are expanding, offering long-term earnings growth potential. - Overall outlook supports steady EBITDA and operating profit growth with cautious optimism on EPS due to higher finance costs.

- The Chennai processing project bid submission is expected later in August 2024; the project is still in the bidding stage. - There are several ongoing tenders, including: - Construction & Transportation (C&T) tenders - Biomining tenders - A large C&T contract in the Mumbai Metropolitan Region (MMR) has been submitted, with results expected within the current quarter. - Other C&T tenders in Thane and Chennai are also in the pipeline. - New contract wins will dictate incremental debt borrowing, with debt only incurred after contracts are awarded. - No finalized order book figures were disclosed, but revenue growth visibility exists from contracts in Panvel, CIDCO biomining, and C&D business. In summary, the company is actively bidding for multiple contracts across C&T, biomining, and processing, with expected closures and order inflows in the near term.