AYM Syntex Ltd

- No major new fundraising through debt or equity is planned in the near term. - The company has adequate liquidity with unutilized bank limits and recently secured additional COVID loans as per RBI guidelines. - Banks have been supportive, and the company has the ability to raise more funding if required. - Most major CAPEX is complete, with only minor maintenance or small debottlenecking CAPEX expected going forward. - Cash flows generated will primarily be used for debt repayment, aiding balance sheet improvement. - The company took the moratorium during COVID-19 for liquidity preservation, not due to a lack of funds. - Overall, the focus is on leveraging existing financial resources efficiently rather than seeking new fundraising immediately.

- The company expects business profitability to improve significantly post-COVID once normalcy returns, building on initiatives from the last 3-5 years and recent cost-saving efforts during lockdown. - Export sales, which have been growing and have higher margins, are a key growth driver going forward. - Operational improvements and productivity initiatives are expected to increase volumes and margins without major CAPEX. - New product development, especially in specialized segments, is underway and expected to contribute over 12-18 months. - Cost-saving measures at plants like Palghar have permanently lowered breakeven levels, enhancing profitability even at lower utilization rates. - EBITDA and cash flows are expected to improve, with FY22 anticipated to show better ratios and balance sheet strength compared to FY20, as generated cash flows focus on debt repayment. - Overall, the company foresees healthier earnings and improved EPS driven by volume growth, better margins, and disciplined cost management beyond the pandemic period.

- The company was running at full capacity since May due to pending order books before the lockdown. (Page 4) - Order inflow at the BCF plant is about 60 to 70% of normal, while the plant is operational at full capacity since mid-May. (Page 4) - Customers have not canceled or dishonored any pre-COVID orders at pre-COVID prices despite oil price crashes, indicating strong order retention. (Page 4) - New inquiries and reorders have started picking up since May and June, with expectations of improved order inflow in July. (Page 14) - Some customers held orders during lockdown but have now given go-ahead to resume manufacturing, while others have moved past old inventory and placed new orders. (Page 14) - Overall, order inflow is recovering slowly but steadily across different customers and segments.

- Most major CAPEX is behind the company, with investments of around Rs 350-400 crore made over the last 4-5 years. - Only minor maintenance CAPEX and small debottlenecking projects are expected going forward. - The company aims to improve profitability through existing levers without significant new capital investment. - New product development is ongoing, especially in POI textile (similar pace to BCF), with some projects having a 12-18 month gestation period. - Potential to increase industrial yarn capacity without additional CAPEX by utilizing existing resources. - No major further CAPEX planned in the next 12-18 months. - The company will focus cash flow predominantly on debt repayment rather than new capital investments.

- The company aims to increase export sales further, which have been growing annually by around 17-18% over the last five years, while domestic sales may remain flat or uncertain. - New product developments, especially in POI textiles, are ongoing with projects having 12-18 months lead time expected to fill capacity and de-risk the business. - Order inflow in the BCF segment improved from April to June, with expectations of further improvement from July, signaling a potential recovery in volumes. - The company sees significant growth opportunities in specialized industrial yarn and automotive segments, especially in Europe, where they have started adding new global customers. - Cost-saving initiatives and better productivity will support margin and volume growth once market demand normalizes. - No major CAPEX expected in the next 12-18 months; cash flows will primarily be used for debt repayments, strengthening the balance sheet to support future growth.