Epack Durable Ltd

- 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.

- 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.

- 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%.

- 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.

- 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).