Any current/future new fundraising through debt or equity?

The company mentioned a capex of approximately Rs.35 Crores for the premix plant. This capex is expected to be funded by a mix of internal accruals and debt. No specific mention of new equity fundraising is found in the transcript. Management is cautious about stretching financial bandwidth, indicating measured use of debt. There is no discussion of any new or additional fundraises, either debt or equity, beyond this context.

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

Construction of a premix plant in Kullu expected to be completed by the end of calendar year 2022 with an estimated capex of Rs.35 Crores. Funding for the premix plant will be a mix of internal accruals and debt. Plans to increase capacity at the Sayakha project for vitamin D3, though no final decision on capex has been taken yet. Focus on launching Vegan D3 made from vegetable oils, prior to advancing vitamin D3 analogs and K1 products. Additional capacity expansions: 25% increase in vitamin D3 human segment capacity recently added, expected to be absorbed over next two years dependin

Future growth expectations in sales/revenue/volumes?

The company expects an average revenue growth CAGR of about 15% over the next 5-6 years, which is a conservative estimate averaging out spikes from new projects (Page 6). The premix plant, expected to be operational by end of calendar year 2022, is anticipated to contribute significantly post-marketing period (Pages 9-10). Capacity expansions in vitamin D3 human segment total about 40%, with absorption expected within two years depending on market conditions (Page 14). The animal feed segment's utilization is currently low (30-35%) but expected to recover, contributing to growth (Page 6). New

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

Management projects a conservative revenue CAGR of about 15% over the next 5-6 years, averaging growth rather than short-term spikes. EBITDA margins are expected to be maintained in the range of 20% to 25% over the long term. Operating EBITDA margin in Q2 FY2022 was 15.77% but management aims to sustain 20%-25% going forward. PAT margins fluctuated around 4-5% this quarter but long-term expectation is stabilization closer to historical 20-25% EBITDA margins. Expansion plans, such as the new premix plant and increased Vitamin D3 human nutrition capacity (up by ~40%), will support growth

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Fermenta Biotech LtdQ3 FY21Pharmaceuticals & Biotechnology

Fermenta Biotech Ltd Q3 FY21 Earnings Call Analysis

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

Price: ₹338P/E: 9.7Market Cap: ₹861 CrSector: Pharmaceuticals & Biotechnology

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→The company expects an average revenue growth CAGR of about 15% over the next 5-6 years, which is a conservative estimate averaging out spikes from new projects (Page 6).
→The premix plant, expected to be operational by end of calendar year 2022, is anticipated to contribute significantly post-marketing period (Pages 9-10).
→Capacity expansions in vitamin D3 human segment total about 40%, with absorption expected within two years depending on market conditions (Page 14).
→The animal feed segment's utilization is currently low (30-35%) but expected to recover, contributing to growth (Page 6).
→New product launches like vegan D3 and vitamin K1 analogs linked to Sayakha project are in progress but may face delay (Page 14).
→Long-term confidence exists to maintain EBITDA margins at 20-25% with a target of 15% revenue growth while managing product mix and market fluctuations (Pages 11, 17).

Margin guidance

Category 3

→Management projects a conservative revenue CAGR of about 15% over the next 5-6 years, averaging growth rather than short-term spikes.
→EBITDA margins are expected to be maintained in the range of 20% to 25% over the long term.
→Operating EBITDA margin in Q2 FY2022 was 15.77% but management aims to sustain 20%-25% going forward.
→PAT margins fluctuated around 4-5% this quarter but long-term expectation is stabilization closer to historical 20-25% EBITDA margins.
→Expansion plans, such as the new premix plant and increased Vitamin D3 human nutrition capacity (up by ~40%), will support growth.
→Premix plant operational by end of 2022, expected to generate asset turnover of 2x capex with decent margins (lower than Vitamin D3 human segment).
→Animal Vitamin D3 segment currently under pressure but expected to recover, contributing to improved margins and profitability.
→Human Vitamin D3 prices remain stable, supporting margin stability.

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Fundraise plans

→The company mentioned a capex of approximately Rs.35 Crores for the premix plant.
→This capex is expected to be funded by a mix of internal accruals and debt.
→No specific mention of new equity fundraising is found in the transcript.
→Management is cautious about stretching financial bandwidth, indicating measured use of debt.
→There is no discussion of any new or additional fundraises, either debt or equity, beyond this context.

Order book

- The transcript does not provide explicit details on the current or expected order book or pending orders for Fermenta Biotech Limited. - However, it mentions participation in new tender business in the US subsidiary, indicating active order inflow in that segment. - Key accounts (long-term customers) continue to contribute to sales, particularly in crystal sales for human vitamin D3, albeit at lower prices. - The company has been operating close to 90% utilization, recently expanded capacity by 25% for human vitamin D3, indicating expected growth in orders. - No specific numeric values or exact order backlog figures were disclosed during the call. - Management emphasizes long-term relationships and stable revenue rather than quarter-to-quarter fluctuations in orders. In summary, there is an ongoing flow of orders through key accounts and new tenders but no specific detailed order book data shared in the call.

Capex plans

Yes

→Construction of a premix plant in Kullu expected to be completed by the end of calendar year 2022 with an estimated capex of Rs.35 Crores.
→Funding for the premix plant will be a mix of internal accruals and debt.
→Plans to increase capacity at the Sayakha project for vitamin D3, though no final decision on capex has been taken yet.
→Focus on launching Vegan D3 made from vegetable oils, prior to advancing vitamin D3 analogs and K1 products.
→Additional capacity expansions: 25% increase in vitamin D3 human segment capacity recently added, expected to be absorbed over next two years depending on market conditions.
→Overall strategy involves backward integration for cholesterol manufacturing with focus on secure supply of wool grease.
→Cautious approach to financial bandwidth to avoid overstretching with multiple ongoing and planned projects.

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