Any current/future new fundraising through debt or equity?

No significant new CAPEX planned for next year, so no immediate need for fresh fundraising. Working capital currently high but expected to be released over the next 2 years. Additional working capital for increased sales anticipated to be funded by release of existing working capital, minimizing need for external debt. No mention of new equity fundraising in the call. Overall, management does not foresee the need for significant external debt or fundraising in the near term based on current growth and CAPEX plans.

Any current/future capex/capital investment/strategic investment?

As of June 30, 2024, Anupam Rasayan has utilized Rs. 530 crores out of the planned Rs. 670 crores CAPEX, with the balance to be incurred in upcoming quarters. The current Rs. 670 crores CAPEX is at the final stages and expected to be completed this fiscal year. No significant new CAPEX is planned for the next fiscal year as existing CAPEX and capacity are sufficient for near to medium-term growth. Minor investments are anticipated in renewable energy (wind and solar) and some plant repurposing. Strategic focus includes investment in sustainability, such as a Rs. 59 crores hybrid solar-

Future growth expectations in sales/revenue/volumes?

Revenue expected to be equal or higher than last year with marginal growth, driven by strong resurgence in Agro segment in the latter half of the year. Rs. 80 to 100 crores of deferment in demand expected to be recouped by year-end, largely from Agri portfolio. New LOIs and contracts contributing about 20%-25% of this year's revenue with significant ramp-up expected in next 2 years. Additional revenue of roughly Rs. 200 crores estimated annually over the next two years from new LOIs/contracts. Polymer and Pharma segments growing strongly, with fluorinated products expected to form 30%-35% of r

Future growth expectations in earnings/operating earnings/profits/EPS?

Revenue growth is expected to be marginally positive for FY25, with recovery in the agri segment in H2 FY25 helping recoup deferred demand of Rs. 80-100 crores. New capacity commissioning and LOIs/contracts contribution projected to add around Rs. 250 crores in revenue this year, with further additions of ~Rs. 200 crores annually over next 2 years. Pharma and Polymer segments are expected to grow, with Pharma contributing 20-25%, Polymer 15%, and Personal Care around 10-12% of revenue by FY27. EBITDA margins expected to remain stable in the 25-28% range, supported by higher margin Polymer and

Current/ Expected Orderbook/ Pending Orders?

The company expects revenue growth driven by new LOIs (Letters of Intent) and contracts, with about 20%-25% of this year's revenue coming from LOIs/contracts commercialized over the last 1-2 years. For FY25, new LOIs and contracts are estimated to contribute around Rs. 250 crores, largely back-ended into the second half of the year. Over FY26 and FY27, the company expects to add roughly Rs. 200 crores additional revenue each year from new LOIs and contracts. The management indicates confidence in achieving these targets despite agrochemical segment headwinds. The order book includes lo

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Anupam Rasayan India LtdQ2 FY24Chemicals & Petrochemicals

Anupam Rasayan India Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,266P/E: 91.1Market Cap: ₹15.7K CrSector: Chemicals & Petrochemicals

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Revenue expected to be equal or higher than last year with marginal growth, driven by strong resurgence in Agro segment in the latter half of the year.
→Rs. 80 to 100 crores of deferment in demand expected to be recouped by year-end, largely from Agri portfolio.
→New LOIs and contracts contributing about 20%-25% of this year's revenue with significant ramp-up expected in next 2 years.
→Additional revenue of roughly Rs. 200 crores estimated annually over the next two years from new LOIs/contracts.
→Polymer and Pharma segments growing strongly, with fluorinated products expected to form 30%-35% of revenue by FY27.
→Investment in capacity expansion (Rs. 670 crores CAPEX) set to yield incremental revenue of Rs. 1,100 to 1,200 crores eventually.
→Total revenue target around Rs. 2,000 to 3,000 crores in medium term.
→Working capital expected to stabilize and support growth without significant new external debt.

Margin guidance

Category 3

→Revenue growth is expected to be marginally positive for FY25, with recovery in the agri segment in H2 FY25 helping recoup deferred demand of Rs. 80-100 crores.
→New capacity commissioning and LOIs/contracts contribution projected to add around Rs. 250 crores in revenue this year, with further additions of ~Rs. 200 crores annually over next 2 years.
→Pharma and Polymer segments are expected to grow, with Pharma contributing 20-25%, Polymer 15%, and Personal Care around 10-12% of revenue by FY27.
→EBITDA margins expected to remain stable in the 25-28% range, supported by higher margin Polymer and fluorinated products.
→ROCE anticipated to improve driven by CAPEX generating asset turn of ~1.5x and margin expansion.
→Working capital optimization over next 2 years expected to reduce external debt needs, aiding profitability.
→EPS expected to improve gradually aligned with revenue growth, margin expansion, and capacity ramp-up through FY27.

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Fundraise plans

→No significant new CAPEX planned for next year, so no immediate need for fresh fundraising.
→Working capital currently high but expected to be released over the next 2 years.
→Additional working capital for increased sales anticipated to be funded by release of existing working capital, minimizing need for external debt.
→No mention of new equity fundraising in the call.
→Overall, management does not foresee the need for significant external debt or fundraising in the near term based on current growth and CAPEX plans.

Order book

Yes

→The company expects revenue growth driven by new LOIs (Letters of Intent) and contracts, with about 20%-25% of this year's revenue coming from LOIs/contracts commercialized over the last 1-2 years.
→For FY25, new LOIs and contracts are estimated to contribute around Rs. 250 crores, largely back-ended into the second half of the year.
→Over FY26 and FY27, the company expects to add roughly Rs. 200 crores additional revenue each year from new LOIs and contracts.
→The management indicates confidence in achieving these targets despite agrochemical segment headwinds.
→The order book includes long-term contracts, especially from Pharma and Polymer segments, supported by fluorination chemistry expansion.
→No specific total order book value was disclosed, but growth projections imply a strong, growing pipeline from recent commercializations and contracts.

Capex plans

Yes

→As of June 30, 2024, Anupam Rasayan has utilized Rs. 530 crores out of the planned Rs. 670 crores CAPEX, with the balance to be incurred in upcoming quarters.
→The current Rs. 670 crores CAPEX is at the final stages and expected to be completed this fiscal year.
→No significant new CAPEX is planned for the next fiscal year as existing CAPEX and capacity are sufficient for near to medium-term growth.
→Minor investments are anticipated in renewable energy (wind and solar) and some plant repurposing.
→Strategic focus includes investment in sustainability, such as a Rs. 59 crores hybrid solar-wind power plant (9.6 MW capacity) aimed at reducing energy costs and achieving energy net zero by 2027.
→Investment in Tanfac expansion supports fluorination raw material supply security without requirement for immediate further capacity expansion.

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