Any current/future new fundraising through debt or equity?

The company has recently repaid INR80 crores of term loan in February 2024, post-IPO. Interest expenses for FY24 were higher due to additional loans taken before the IPO and prior private equity funds utilized. The impact of loan repayment is expected to be seen in FY25 with a significant reduction in finance costs. There is no specific mention of plans for new fundraising through debt or equity in the transcript. The company is focused on using existing resources, improving operational efficiencies, and leveraging increased manufacturing capacity for growth. Any potential future fundraising i

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

EPACK Durable expanded its manufacturing capacity by around 50% in FY24 with the commissioning of its Sri City facility in Andhra Pradesh. This capacity expansion is aimed at meeting current and increasing customer demands, especially for the summer season. The company is focused on diversifying its product mix and expanding its client base in FY25 as part of its growth strategy. No specific future capex or strategic investments beyond the Sri City facility commission were explicitly mentioned in the call. The increased capacity is expected to be fully utilized in FY25 and FY26, aiding growth

Future growth expectations in sales/revenue/volumes?

FY25 industry expected growth: 17-20%; EPACK aims to match or better this growth. Q1 FY25 revenue expected at INR600 crores+, reflecting more than 50% YoY growth. 50% increased manufacturing capacity commissioned in Q4 FY24; utilization improving in FY25. Capacity expansion to support incremental demand and enabling business growth in FY25 and FY26. Component business anticipated to grow significantly over the next 2-3 years. Diversification into new product categories (air coolers, washing machines, components) to reduce dependence on core products from 80% to below 70% over 2-3 yea

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

EPACK Durable expects industry growth of 17-20% in FY25, aiming to match or exceed this. Q1 FY25 revenue is projected at INR600+ crores, reflecting over 50% YoY growth due to spillover demand and market heatwave. EBITDA margins aim to be maintained around 8%, with Q4 FY24 margins reaching 10.56% but not expected to sustain at that level. The company focuses on operational efficiencies and innovation to manage inflationary pressures and sustain margins. Reduction in working capital (from 91 to 45 days) and significant debt reduction improves financial health. Long-term strategy includes diversi

Current/ Expected Orderbook/ Pending Orders?

EPACK Durable Limited has a very strong order book for the current quarter (Q1 FY25). The company is witnessing significant growth in demand, partly due to overflow from the weak Q4 FY24. There is also intense season-driven demand (notably due to an intense heatwave across the country). Recent capacity expansion (~50%) is being utilized to meet incremental and pent-up demand. The company expects Q1 FY25 revenues to be around INR 600 crores+, reflecting more than 50% growth year-on-year. Inventory levels are high entering Q1 to meet peak season demand, indicating preparedness for fulfilling lar

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Epack Durable LtdQ1 FY24Consumer Durables

Epack Durable Ltd Q1 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 2

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→FY25 industry expected growth: 17-20%; EPACK aims to match or better this growth.
→Q1 FY25 revenue expected at INR600 crores+, reflecting more than 50% YoY growth.
→50% increased manufacturing capacity commissioned in Q4 FY24; utilization improving in FY25.
→Capacity expansion to support incremental demand and enabling business growth in FY25 and FY26.
→Component business anticipated to grow significantly over the next 2-3 years.
→Diversification into new product categories (air coolers, washing machines, components) to reduce dependence on core products from 80% to below 70% over 2-3 years.
→Current strong demand and low channel inventory boost confidence for sustained growth beyond Q1.
→Management emphasizes long-term value creation; no specific numeric guidance beyond industry growth range.

Margin guidance

Category 3

→EPACK Durable expects industry growth of 17-20% in FY25, aiming to match or exceed this.
→Q1 FY25 revenue is projected at INR600+ crores, reflecting over 50% YoY growth due to spillover demand and market heatwave.
→EBITDA margins aim to be maintained around 8%, with Q4 FY24 margins reaching 10.56% but not expected to sustain at that level.
→The company focuses on operational efficiencies and innovation to manage inflationary pressures and sustain margins.
→Reduction in working capital (from 91 to 45 days) and significant debt reduction improves financial health.
→Long-term strategy includes diversifying product portfolio to reduce dependency on core segments, targeting revenue balance between segments.
→EPACK aims to create long-term investor value by sustained growth and maintaining operational excellence.

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Fundraise plans

→The company has recently repaid INR80 crores of term loan in February 2024, post-IPO.
→Interest expenses for FY24 were higher due to additional loans taken before the IPO and prior private equity funds utilized.
→The impact of loan repayment is expected to be seen in FY25 with a significant reduction in finance costs.
→There is no specific mention of plans for new fundraising through debt or equity in the transcript.
→The company is focused on using existing resources, improving operational efficiencies, and leveraging increased manufacturing capacity for growth.
→Any potential future fundraising is not explicitly disclosed in the current earnings call transcript.

Order book

Yes

→EPACK Durable Limited has a very strong order book for the current quarter (Q1 FY25).
→The company is witnessing significant growth in demand, partly due to overflow from the weak Q4 FY24.
→There is also intense season-driven demand (notably due to an intense heatwave across the country).
→Recent capacity expansion (~50%) is being utilized to meet incremental and pent-up demand.
→The company expects Q1 FY25 revenues to be around INR 600 crores+, reflecting more than 50% growth year-on-year.
→Inventory levels are high entering Q1 to meet peak season demand, indicating preparedness for fulfilling large orders.
→The management believes the order book reflects not only spillover but also sustained strong industry growth for FY25.
→No major new client expansions expected immediately, but Voltas is expanding capacity by end of Q1 or beginning of Q2 FY25.

Capex plans

Yes

→EPACK Durable expanded its manufacturing capacity by around 50% in FY24 with the commissioning of its Sri City facility in Andhra Pradesh.
→This capacity expansion is aimed at meeting current and increasing customer demands, especially for the summer season.
→The company is focused on diversifying its product mix and expanding its client base in FY25 as part of its growth strategy.
→No specific future capex or strategic investments beyond the Sri City facility commission were explicitly mentioned in the call.
→The increased capacity is expected to be fully utilized in FY25 and FY26, aiding growth in components and finished goods.
→EPACK continues to invest in R&D, maintaining a 60+ employee team focused on product development, process improvement, and innovation.
→The company’s focus includes operational excellence and innovation to manage costs amid inflation pressures.

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