Dishman Carbogen Amcis Ltd

- No plans to raise equity to repay debt as per Harshil Dalal. - Interest rates (LIBOR/SOFR) are expected to decrease, reducing interest costs, making debt cheaper than equity. - The company will continue managing hedging actively to handle foreign currency exposure. - Focus is on generating free cash flow to reduce net debt over the next 2-2.5 years, targeting a net debt-to-EBITDA ratio below 2 by FY '27. - No mention of new debt fundraising; emphasis is on maintaining and reducing current debt levels through cash flow rather than new borrowings.

- Major capex related to growth has largely been completed; future capex will mainly be maintenance-focused. - Total capex in the first half of the financial year was about INR125 crores; expected full-year capex around INR250 crores, including digital transformation activities. - Discussions underway for a potential 2-digit million investment in a specific facility to debottleneck supply chain capacity, linked to a customer project ramp-up in the second half. - Continued investment in digitalization and operational excellence to improve efficiency and profitability. - No plans presently to raise equity for debt repayment; interest rates expected to decrease, reducing finance costs.

- Bavla site in India expects 25% to 30% growth in the next financial year, aiming to normalize operations and improve margins (Page 17). - Overall company revenue growth estimated around 8% to 9% for the full fiscal year (Page 9). - Carbogen Amcis targeting CHF 255 million revenue for FY '25 and is on track to achieve this (Page 8). - CRAMS Carbogen Amcis business saw a commercial revenue growth of about 52% compared to last year Q2 (Page 6). - Increase in inquiries and order books expected post-election, leading to new project capture in early 2025 (Pages 8, 9). - French facility expected to reach break-even in the next financial year with revenue growth from €9.5 million in H1 to €18-19 million next year (Page 9). - Long term goal to reach steady-state EBITDA margin of ~25-30% supported by improved operations in India, France, and reduction in raw material prices in Netherlands (Page 17).

- Revenue growth expected at 8-9% for the full year FY '25; previous outlook mentioned 5-10%. - EBITDA margin forecast to improve to at least 16% for FY '25, with aspirations to reach 25% steady-state margin in 2-3 years post normalization of operations. - Long-term target EBITDA margin around 25%-30%, driven by French facility breaking even, India operations normalizing (historically >30% EBITDA margin), and reduced raw material costs in the Netherlands. - Net debt to EBITDA ratio targeted to reduce to less than 2 (1.5 to 2 range) by FY '27, supported by free cash flow and EBITDA growth. - Earnings expected to improve with operating efficiencies, new contracts, especially in Carbogen Amcis and India business. - French facility anticipated to break even EBITDA by FY '26 with revenues of €18-19 million. - PAT margin in Q2 FY '25 was about 4.2%, with a profit-before-tax increase of INR42 crores, signaling improving profitability.

- Carbogen Amcis order book decreased from CHF 142 million to CHF 110 million as of September 30, 2024. - The decrease is considered transient, mainly due to market slowdown and election-related wait in the U.S. - The product commercial pipeline remains stable. - There is cautious optimism with new orders expected in the second half of the year and early 2025. - A new contract with a German customer for over CHF 1 million was recently secured. - Total orders in hand for the new French facility exceed CHF 10 million. - The market is expected to pick up post-U.S. presidential election with increased venture capital activity. - Increased orders from existing customers observed, particularly in mid to large molecules manufacturing shifting from China. - The Bavla site in India is expected to ramp up orders with 25%-30% growth anticipated next financial year.