Any current/future new fundraising through debt or equity?

No immediate new fundraising through equity is planned; the company already has INR 230 crores from IPO proceeds parked as fixed deposits for upcoming capex. Capex of about INR 240 crores for Hisense partnership and approx. INR 40-50 crores for existing business expansions will be funded from these internal funds and accruals. Debt increased by about INR 100 crores recently due to not discounting customer invoices; this was a conscious decision to access lower-cost working capital from banks rather than higher-interest customer invoice discounting. The company expects to manage interest costs

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

The company plans a capex of approximately INR 240 crores (~$30 million) over the next three years to set up new air conditioning capacities (1.5 million units) primarily for Hisense. This INR 240 crore investment is fully funded by EPACK Durables through a new subsidiary; it excludes investments by Hisense or investments in existing manufacturing like sheet metal or injection moulding. Production for the Hisense facility is expected to start by June-July 2025, with stabilization and scaling during the following quarters. Existing manufacturing units (three plants) will see limited incre

Future growth expectations in sales/revenue/volumes?

Company targets a $1 billion revenue over the next five years, driven by air conditioners, washing machines, refrigerators, and new-age appliances. Projected sales growth of 40%-50% year-on-year for the next two to three years. Air conditioning segment expected to grow at 17%-18% CAGR over the next three to four years, with no expected normalization in demand. New product launches like air coolers, washing machines, air fryers, and small domestic appliances will contribute to growth, scaling up largely by Q4 FY'26. Exports expected to grow significantly, with a planned start of shipmen

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

EPACK Durable Limited targets strong growth with revenue expected to grow at 40% to 50% year-on-year for the next few years to achieve $1 billion sales in 5 years. EBITDA margin expected to remain steady around 8%. The company aims for ROE and ROCE of minimum 17% within the next 2-3 years, improving profitability. Expansion and diversification into products like air conditioners, washing machines, coolers, small home appliances, and components are key growth drivers. Capacity utilization, especially at Sri City plant, expected to improve from ~30% by year-end to 60%+ next year, enhancing opera

Current/ Expected Orderbook/ Pending Orders?

Customers have already started ramping up production for the upcoming season starting from end of November or early December (Page 7). The company is experiencing strong demand and robust order inflows across product segments, particularly in air conditioning, which contributed over 70% of Q2 revenue (Pages 7, 8). Orders for the next season are already being placed by clients, indicating a healthy and growing order book (Page 8). The company continues to add new customers, such as Hisense and Panasonic, expanding its order pipeline and reducing concentration risks (Pages 9, 11). Growth momentu

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Epack Durable LtdQ3 FY24Consumer Durables

Epack Durable Ltd Q3 FY24 Earnings Call Analysis

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

Price: ₹241P/E: 56.5Market Cap: ₹2.3K CrSector: Consumer Durables

Management growth scorecard

Revenue

Category 1

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 1

→Company targets a $1 billion revenue over the next five years, driven by air conditioners, washing machines, refrigerators, and new-age appliances.
→Projected sales growth of 40%-50% year-on-year for the next two to three years.
→Air conditioning segment expected to grow at 17%-18% CAGR over the next three to four years, with no expected normalization in demand.
→New product launches like air coolers, washing machines, air fryers, and small domestic appliances will contribute to growth, scaling up largely by Q4 FY'26.
→Exports expected to grow significantly, with a planned start of shipments to new markets including the US by next quarter.
→Capacity expansions and new partnerships (e.g., Hisense) will support scaling both domestic and export markets.
→Internal cash generation and strategic funding planned to support sustained growth at 25%-50%, maintaining EBITDA margins around 8%.

Margin guidance

Category 3

→EPACK Durable Limited targets strong growth with revenue expected to grow at 40% to 50% year-on-year for the next few years to achieve $1 billion sales in 5 years.
→EBITDA margin expected to remain steady around 8%.
→The company aims for ROE and ROCE of minimum 17% within the next 2-3 years, improving profitability.
→Expansion and diversification into products like air conditioners, washing machines, coolers, small home appliances, and components are key growth drivers.
→Capacity utilization, especially at Sri City plant, expected to improve from ~30% by year-end to 60%+ next year, enhancing operating leverage.
→New partnerships (such as with Hisense) and export markets (US, Europe) anticipated to contribute significantly from FY'26 onwards.
→Despite short-term pressure on margins due to capacity ramp-up, long-term improvements in profits and EPS are expected linked to scale and product mix.

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Fundraise plans

Yes

→No immediate new fundraising through equity is planned; the company already has INR 230 crores from IPO proceeds parked as fixed deposits for upcoming capex.
→Capex of about INR 240 crores for Hisense partnership and approx. INR 40-50 crores for existing business expansions will be funded from these internal funds and accruals.
→Debt increased by about INR 100 crores recently due to not discounting customer invoices; this was a conscious decision to access lower-cost working capital from banks rather than higher-interest customer invoice discounting.
→The company expects to manage interest costs and maintain finance costs despite increased debt.
→Future incremental working capital needs are expected to be met using bill discounting facilities and internal capital generation.
→Overall, the company does not currently see a liquidity concern or the need for new debt or equity raising.

Order book

Yes

→Customers have already started ramping up production for the upcoming season starting from end of November or early December (Page 7).
→The company is experiencing strong demand and robust order inflows across product segments, particularly in air conditioning, which contributed over 70% of Q2 revenue (Pages 7, 8).
→Orders for the next season are already being placed by clients, indicating a healthy and growing order book (Page 8).
→The company continues to add new customers, such as Hisense and Panasonic, expanding its order pipeline and reducing concentration risks (Pages 9, 11).
→Growth momentum is supported by strategic initiatives like commissioning new plants and enhancing in-house component manufacturing, which helps in fulfilling increasing order requirements efficiently (Pages 7, 17).
→Overall, the order book is strong and poised to support the company's ambitious growth targets of 40-50% over the next few years (Pages 18, 20).

Capex plans

Yes

→The company plans a capex of approximately INR 240 crores (~$30 million) over the next three years to set up new air conditioning capacities (1.5 million units) primarily for Hisense.
→This INR 240 crore investment is fully funded by EPACK Durables through a new subsidiary; it excludes investments by Hisense or investments in existing manufacturing like sheet metal or injection moulding.
→Production for the Hisense facility is expected to start by June-July 2025, with stabilization and scaling during the following quarters.
→Existing manufacturing units (three plants) will see limited incremental capex of about INR 40-50 crores mainly for fine-tuning and scaling small home appliances like washing machines.
→No significant new investments are planned in existing plants for the next two to three quarters.
→Internal accruals and IPO proceeds parked in fixed deposits will be used alongside working capital facilities, minimizing the need for additional high-cost debt.

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