Any current/future new fundraising through debt or equity?

As of the Q2 FY24 earnings call, there is no mention of any planned equity fundraising or buybacks. The company is focused on growth and CapEx for volume expansion rather than buyback or bonuses. Current debt level as of 30th September 2023 stands at INR 961 crore. Additional borrowings for Chlorotoluene and CPVC expansions are expected to keep debt in the range of INR 970-980 crore. The company expects debt to remain at similar levels, factoring in repayments and new borrowings for ongoing CapEx. There is no explicit mention of fresh debt fundraising beyond what's accounted for current expans

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

Epigral Limited is currently commissioning a CPVC Compound plant with a capacity of 35,000 tons per annum, expected to be operational by the end of Q4 FY24. The company is expanding its CPVC capacity from 30,000 to 45,000 tons per annum, with the expanded capacity expected to be completed in Q4 FY24. They are also investing in Chlorotoluene plant commissioning and additional Caustic Soda capacity, aiming to increase captive chlorine consumption to 80%. Total capital expenditure in Q2 FY24 was INR 117 crore. The company plans continued expansions in high-value and high-growth products, strength

Future growth expectations in sales/revenue/volumes?

Company expects strong volume growth driven by commissioned projects in CPVC Resin, Epichlorohydrin, and Caustic Soda capacity expansions. Volume growth was 21% YoY and 12% QoQ in Q2 FY24; 15% growth in first half of FY24. Demand for CPVC is expected to grow significantly, easily absorbing new capacities including 45,000 tons planned soon and further expansions by others taking 2-3 years. Long-term growth story remains intact; infrastructure and tier 2/3 city projects driving CPVC pipe demand. Company targets consistent top-line and bottom-line growth through diversification into multiproduct

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

EBITDA margin guidance for FY24 is expected around 24% to 25%, with improvement in H2 over H1. Volume growth is expected to be strong, driven by commissioning of CPVC, Epichlorohydrin, and Caustic Soda expansions. CPVC capacity utilization currently at 80-85%, expected to sustain and grow as new capacities come online. Epichlorohydrin capacity utilization improved to ~45-50% and expected to increase further in coming quarters. Demand for CPVC is expected to remain strong, especially in Q2 and Q3, supporting volume growth. Contribution from Derivatives and Specialty segment is increasing (46% o

EpigralQ2 FY24Chemicals & Petrochemicals

Epigral Q2 FY24 Earnings Call Analysis

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

Price: ₹907.3P/E: 14.4Market Cap: ₹3.9K CrSector: Chemicals & Petrochemicals

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Order

N/A

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

Company expects strong volume growth driven by commissioned projects in CPVC Resin, Epichlorohydrin, and Caustic Soda capacity expansions.
Volume growth was 21% YoY and 12% QoQ in Q2 FY24; 15% growth in first half of FY24.
Demand for CPVC is expected to grow significantly, easily absorbing new capacities including 45,000 tons planned soon and further expansions by others taking 2-3 years.
Long-term growth story remains intact; infrastructure and tier 2/3 city projects driving CPVC pipe demand.
Company targets consistent top-line and bottom-line growth through diversification into multiproduct segments.
EBITDA margin expected around 24-25% for FY24, with improvement expected in H2 over H1.
Volume growth of 15-20% annually targeted via continuous CapEx and capacity utilization improvements.
Expansion plans for Chlorotoluene, CPVC Compound commissioning by Q4 FY24 to contribute from FY25 onward.

Margin guidance

Category 3

EBITDA margin guidance for FY24 is expected around 24% to 25%, with improvement in H2 over H1.
Volume growth is expected to be strong, driven by commissioning of CPVC, Epichlorohydrin, and Caustic Soda expansions.
CPVC capacity utilization currently at 80-85%, expected to sustain and grow as new capacities come online.
Epichlorohydrin capacity utilization improved to ~45-50% and expected to increase further in coming quarters.
Demand for CPVC is expected to remain strong, especially in Q2 and Q3, supporting volume growth.
Contribution from Derivatives and Specialty segment is increasing (46% of revenue in Q2 FY24 vs 29% in Q2 FY23), supporting margin expansion.
PAT grew 20% QoQ in Q2 despite YoY challenges, indicating recovery.
Long-term revenue growth target remains INR 5,000 crore by FY27, with 15-20% annual volume growth aspirations.
Management expects recovery and consistent growth post short-term industry challenges.

See what Epigral management said on margin guidance — free account, 30 seconds.

Fundraise plans

As of the Q2 FY24 earnings call, there is no mention of any planned equity fundraising or buybacks.
The company is focused on growth and CapEx for volume expansion rather than buyback or bonuses.
Current debt level as of 30th September 2023 stands at INR 961 crore.
Additional borrowings for Chlorotoluene and CPVC expansions are expected to keep debt in the range of INR 970-980 crore.
The company expects debt to remain at similar levels, factoring in repayments and new borrowings for ongoing CapEx.
There is no explicit mention of fresh debt fundraising beyond what's accounted for current expansion projects.

Order book

The transcript of Epigral Limited's Q2 FY24 Earnings Conference Call does not provide specific details on the current or expected order book or pending orders. The discussion primarily focuses on: - Capacity utilization improvements in CPVC and Epichlorohydrin. - Volume growth driven by new capacity commissioning. - Demand outlook for CPVC and Caustic Soda. - Industry capacity expansions and market demand growth rates. - Financial metrics like revenue, EBITDA, and margins. - Expansion plans and future growth targets. No direct mention or quantitative data regarding order book size or pending orders was disclosed in the provided pages.

See what Epigral management said on order book — free account, 30 seconds.

Capex plans

Yes

Epigral Limited is currently commissioning a CPVC Compound plant with a capacity of 35,000 tons per annum, expected to be operational by the end of Q4 FY24.
The company is expanding its CPVC capacity from 30,000 to 45,000 tons per annum, with the expanded capacity expected to be completed in Q4 FY24.
They are also investing in Chlorotoluene plant commissioning and additional Caustic Soda capacity, aiming to increase captive chlorine consumption to 80%.
Total capital expenditure in Q2 FY24 was INR 117 crore.
The company plans continued expansions in high-value and high-growth products, strengthening integrated complex and diversifying into multiple industries for consistent growth.
Debt levels are expected to remain stable around INR 970-980 crore post CapEx completion.
Volume growth from CPVC expansion and Chlorotoluene plant is expected to drive sales from FY25 onwards.

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Epigral Q2 FY24 Earnings Call Analysis

Revenue guidance

Fundraise plans

Capex plans

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What Epigral's management said in earlier quarters

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