Any current/future new fundraising through debt or equity?

The company currently has bank limits of ₹300 crores with HDFC Bank and ₹50 crores with PNB, mainly for short-term seasonal financing. They have no intention of using these loans extensively and prefer operating with their own funds. The management's vision is to avoid borrowing from banks in the future and work using their own money. Seasonal borrowing is typical starting from November and repaid by April each year. The interest rate on their borrowings is very low, approximately 4%. There is no mention of any immediate or future plans for raising funds through equity or long-term debt. CapEx

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

CLSEL is undertaking CapEx to increase capacity, with more demand than current supply. Three new packaging units are being installed at the Karnal factory, expected operational by January/February 2025. These three units will add approximately ₹100 crore quarterly revenue initially. Another new packaging unit is being set up in Gandhidham (Mundra), bringing the total new units to four. CapEx per unit is approximately ₹1.5 to ₹2 crores, mainly for machinery; no land or infrastructure purchase as land is already owned. Larger pack sizes manufacturing is planned at new units, targeting over ₹150

Future growth expectations in sales/revenue/volumes?

Trailing 12 months revenue already exceeds ₹1,500 crores; projected FY25 revenue could reach ₹1,600 crores, up from last year's ₹1,400 crores. FY26 guidance expects revenue around ₹1,800 crores or more, based on strong order inflow, international goodwill, and presence. New packing capacities (three units, including one at Gandhidham) expected to add approximately ₹100 crores revenue per quarter initially, potentially rising to ₹150 crores. The company is expanding its global customer base with an emphasis on profitable small buyers worldwide. Growth is supported by participation in ma

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

The company expects revenue for FY25 to reach around ₹1,500 crores, potentially going up to ₹1,600 crores due to new capacities and strong order inflows. For FY26, management remains confident of achieving or exceeding the previous guidance of ₹1,800 crores revenue, driven by increased international presence and participation in global exhibitions. Margins are expected to expand with aging of basmati rice inventory over 6 to 12 months, potentially reaching double-digit levels (11-12%) by FY26. The business model focuses on growing small, profitable customers globally, ensuring steady and

Current/ Expected Orderbook/ Pending Orders?

The company currently has more demand than its own supply capacity, indicating a strong order book. There are more orders than the company can pack monthly, showing an order backlog. New production capacities are expected to come online in about one month's time, which will help address pending orders. The management is aggressively procuring rice to cover existing sales and then plans to take advantageous positions based on market prices. With ongoing participation in international exhibitions and increased international goodwill, the order inflow is expected to grow further. The company targ

IN US

Sale is live|00:00:00left today

Chamanlal Setia Exports LtdQ3 FY24Agricultural Food & other Products

Chamanlal Setia Exports Ltd Q3 FY24 Earnings Call Analysis

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

Price: ₹294P/E: 13.3Market Cap: ₹1.3K CrSector: Agricultural Food & other Products

Management growth scorecard

Revenue

Category 2

Margin

Category 1

Fundraise

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Trailing 12 months revenue already exceeds ₹1,500 crores; projected FY25 revenue could reach ₹1,600 crores, up from last year's ₹1,400 crores.
→FY26 guidance expects revenue around ₹1,800 crores or more, based on strong order inflow, international goodwill, and presence.
→New packing capacities (three units, including one at Gandhidham) expected to add approximately ₹100 crores revenue per quarter initially, potentially rising to ₹150 crores.
→The company is expanding its global customer base with an emphasis on profitable small buyers worldwide.
→Growth is supported by participation in major international exhibitions, promoting private label and brand products.
→Domestic B2C focus is growing gradually, especially through online sales channels, while main focus remains on foreign markets.
→Long-term vision aims for continuous growth by adding small, profitable customers globally and expanding order volumes.

Margin guidance

Category 1

→The company expects revenue for FY25 to reach around ₹1,500 crores, potentially going up to ₹1,600 crores due to new capacities and strong order inflows.
→For FY26, management remains confident of achieving or exceeding the previous guidance of ₹1,800 crores revenue, driven by increased international presence and participation in global exhibitions.
→Margins are expected to expand with aging of basmati rice inventory over 6 to 12 months, potentially reaching double-digit levels (11-12%) by FY26.
→The business model focuses on growing small, profitable customers globally, ensuring steady and sustainable profit growth.
→Management is aggressive in procurement to leverage lower rice prices and increase profitability, contributing positively to operating earnings.
→Overall, the company aims for consistent top-line growth of 20-30% over the next few years, alongside margin expansion and operational efficiencies.

3 more insights locked — sign up free to unlock

Fundraise plans

→The company currently has bank limits of ₹300 crores with HDFC Bank and ₹50 crores with PNB, mainly for short-term seasonal financing.
→They have no intention of using these loans extensively and prefer operating with their own funds.
→The management's vision is to avoid borrowing from banks in the future and work using their own money.
→Seasonal borrowing is typical starting from November and repaid by April each year.
→The interest rate on their borrowings is very low, approximately 4%.
→There is no mention of any immediate or future plans for raising funds through equity or long-term debt.
→CapEx plans are funded internally, with existing land and warehousing, involving only machinery investment, which is relatively low.

Order book

Yes

→The company currently has more demand than its own supply capacity, indicating a strong order book.
→There are more orders than the company can pack monthly, showing an order backlog.
→New production capacities are expected to come online in about one month's time, which will help address pending orders.
→The management is aggressively procuring rice to cover existing sales and then plans to take advantageous positions based on market prices.
→With ongoing participation in international exhibitions and increased international goodwill, the order inflow is expected to grow further.
→The company targets revenue growth from ₹1,500 crores to potentially ₹1,600 crores in FY25, with strong confidence in meeting or exceeding this due to the robust order pipeline.

Capex plans

Yes

→CLSEL is undertaking CapEx to increase capacity, with more demand than current supply.
→Three new packaging units are being installed at the Karnal factory, expected operational by January/February 2025.
→These three units will add approximately ₹100 crore quarterly revenue initially.
→Another new packaging unit is being set up in Gandhidham (Mundra), bringing the total new units to four.
→CapEx per unit is approximately ₹1.5 to ₹2 crores, mainly for machinery; no land or infrastructure purchase as land is already owned.
→Larger pack sizes manufacturing is planned at new units, targeting over ₹150 crore annual revenue from the new facility.
→The company plans to continue expanding its export business through participation in international exhibitions for business development.

How does Chamanlal Setia Exports Ltd rank vs peers in Agricultural Food & other Products?

Pro feature

1Chamanlal Setia Exports Ltd

Rev 2Mar 1

See full Agricultural Food & other Products sector rankings

Want more stocks like Chamanlal Setia Exports Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.

Build my portfolio