Associated Alcohols & Breweries Ltd

- No immediate plans to raise additional equity; expansions will be funded through internal accruals and small debt if needed. - The recent preferential allotment raised approximately INR 75 crores (including a prior INR 40-45 crores tranche) targeted for capital requirements like the malt plant and UP bottling cum distillery. - Current term loan debt stands at around INR 65 crores with repayment ongoing; no working capital debt used as of June 2024. - Debt cost post-government interest subvention is approximately 4.5%. - Future expansion projects, including the UP bottling cum distillery and malt plant, are planned to be funded primarily through internal accruals without significant additional equity or large debt.

- **Malt Plant**: Investment of approx. INR 80 crores to set up a six-scale malt plant at existing premises in Madhya Pradesh, targeting premiumization and own single malt product launches; expected to commission by March 2025. - **Bottling Plant in UP**: New bottling plant followed by a distillery planned in Uttar Pradesh; currently in land acquisition phase; first stage is bottling. - **Expansion in Existing Facilities**: Ongoing projects include expanding bottling halls and increasing ENA storage capacity. - **Funding**: Recent preferential allotment raised around INR 75-80 crores predominantly for the malt plant and UP bottling-cum-distillery projects; expansions primarily funded via internal accruals with minimal new debt expected. - **No further major equity raise anticipated**; future expansions to be funded through internal accruals and limited debt.

- IMFL proprietary brands targeted to grow by 12% to 14% in FY'25, through a mix of volume and price growth. - Overall company revenue expected to grow 12% to 14% in FY'25 (excluding ethanol), with ethanol expected to add additional revenue (~INR 300 crores). - For FY'26, revenue growth guidance is also 13% to 14% with EBITDA margins improving from 11%-13% in FY'25 to 13%-14% in FY'26. - Expansion into new states including Delhi, Chhattisgarh, Maharashtra, Pondicherry, Assam, Tripura, Goa, and UP planned to drive growth. - New product launches including premium RTD drinks, tequila, and blended whiskey Hillfort planned through FY'25. - Malt plant and bottling cum distillery in UP projects underway, expected to support future volumes and premium segment growth. - Focus on innovation, premiumization, and geographic expansion to sustain revenue and volume growth.

- FY'25 EBITDA margin guidance: 11% to 13%; FY'26 guidance: 13% to 14%. - Revenue growth target FY'25 (excluding ethanol): 12% to 14%; similar range of 13% to 14% for FY'26. - Ethanol contributes additional revenue (~INR 300 crores) on top of targeted growth. - IMFL proprietary brands expected to grow by 12% to 14% in FY'25 through volume and price growth. - Expansion into new states and premium product launches to drive future growth. - Malt plant and UP bottling/distillery projects underway; malt plant revenue expected long-term due to aging requirements. - Operational efficiencies and cost control measures to offset high grain prices. - No major equity dilution expected; capex funded mainly through internal accruals and small debt increments. Overall, the company projects steady revenue and margin expansion driven by product premiumization, geographic expansion, and enhanced operational efficiencies.

The transcript and presentation do not explicitly mention the current or expected order book or pending orders for Associated Alcohols and Breweries Limited. However, relevant points related to sales and launches that may impact orders are: - IMFL proprietary volume sales for Q1 FY25: 433,000 cases. - IMFL licensed brand volume: 387,000 cases. - New product launches planned for Q2, Q3, Q4 include ready-to-drink (RTD) beverages and tequila. - Expansion into new states such as Delhi, Chhattisgarh, Maharashtra, Pondicherry, Assam, Tripura, Goa, and Uttar Pradesh. - Registration for Nicobar gin in Delhi, UP, and Chhattisgarh completed; sales to start soon. - Sales expected to start in newly targeted states from Q2 onwards. - Ethanol plant operating at peak capacity with 9 million liters sold in Q1; similar production expected going forward. No specific details on order books or pending orders were disclosed.