Fredun Pharmaceuticals Ltd

- The company is definitely planning a fundraise and will evaluate requirements soon. - No fixed timeline mentioned, but fundraising is expected in the coming months. - Currently, there is no long-term debt; most debt is working capital. - Even without raising funds in the next 1 to 6 months, growth is not expected to be hampered. - The company has successfully grown about 30% last financial year without raising funds. - Debt-equity ratio is around 1:1; the company is comfortable but open to equity infusion to support high growth plans.

- Diagnostic center expansion: Planning to open a new diagnostic center in north Mumbai by end of the year; aiming to expand to multiple large cities over next 18 months. - Per center capex for diagnostic centers estimated around INR 6-8 crores. - Expansion of manufacturing capacity: Targeting to have one of the largest single-location plants in India within next 18-24 months to support new age business growth. - Continuous investment in creating efficiencies and manufacturing capabilities to support growth and margin expansion. - Strategic acquisition: Acquired One Pet Stop to access 4,000 pet customers and expand pet care ecosystem. - Future fundraising planned to support growth and capital requirements; no immediate pressure on funds due to current working capital debt structure.

- Targeting 15% to 20% year-on-year revenue growth overall. - Ambition to double revenue and PAT within 3 to 4 years, aiming for INR 800+ crore top line and INR 90+ crore PAT. - Vintage business expected to grow around 15% to 18% annually, supported by 1,290 product registrations in the pipeline. - New age business, including Fredun Gx and pet care, targeted to reach INR 150 crore in next years with higher gross margins (above 50%). - Plan to eliminate low-margin products and improve cost efficiencies with expanded manufacturing capacity. - Anticipate growth from new age segments such as pet care, nutrition, and wellness. - Working capital improvements expected to stabilize cash flows and support growth sustainably. - Strong order book with confirmed orders covering a 6-month period supports steady growth visibility.

- Targeting 15% to 20% year-on-year revenue growth going forward. - Aim to double revenue and PAT in the next 3 to 4 years, targeting INR 800+ crore top line and INR 90+ crore PAT. - EBITDA margins expected to improve as new age business (with above 50% gross margins) scales up. - New age business segments (pet care, nutrition, mobility, wellness) expected to grow at 35% to 40% CAGR. - Shift towards branded products and higher margin offerings to enhance profitability. - Expect cost efficiencies and continuous improvement to drive improved margins and profitability. - Debtors and inventory days expected to stabilize, supporting better cash flows and earnings visibility. - No bad debts historically; confident of sustaining profitable growth and cash flow improvements.

- Fredun Pharmaceuticals has a firm order book valued at around INR 200 crores. - These orders cover both export and local markets. - Orders from export markets are confirmed for a 6-month period. - Local market orders, including third-party orders, also generally cover a 6-month period. - The company does not record orders in its system unless they are confirmed. - This implies an assured order book of approximately two quarters for the vintage business and associated segments.