Ganesha Ecosphere Ltd

- No immediate equity dilution planned in FY24 from warrant conversion; the 18-month warrant period ends September 2025 with conversion potentially in tranches based on fund needs. - Debt currently around INR 400 crores with cash reserves of about INR 180-185 crores; no near-term increase in borrowings expected. - Capex plans are being finalized; expansion-related machinery deliveries are expected by September to December 2025 with commissioning by December 2025 to March 2026. - Future capacity expansion likely will require funding but exact debt or equity fundraising specifics will be shared post-board approval. - Overall, no confirmed new fundraising through debt or equity announced yet; the company remains focused on optimized utilization and gradual expansion with existing resources.

- Total capex spent so far on Warangal unit is about INR 600 crores; the envisaged capex was around INR 650 crores. - The rPET granule line is expected to be operational by June 2024; 3rd line expected operational by June end. - FY25 capex plan is being finalized; current estimate is around INR 70-80 crores mainly for: - Solar rooftop installation (~INR 30-32 crores) - Maintenance capex - Machinery modifications for capacity improvement - For new capacity expansion beyond current lines: - Time to commission new facility is 15-18 months from announcement. - Expansion plans are under discussion; any new capacity likely operational by Dec 2025 to Mar 2026. - Focus remains on rPET granules; slow progress on HDPE/PP due to pending food safety approvals. - No immediate plan for forward integration into yarn/fabric; possible in future if opportunity arises.

- For FY25, Ganesha Ecosphere targets consolidated sales turnover of INR 1,500 to INR 1,600 crores with around 16% operating margins. - Full capacity utilization of expanded Warangal plant and ramp-up of filament yarn capacity expected to help reach INR 1,800 to INR 2,000 crores turnover and 17%-18% margins. - rPET granules demand is set to grow, driven by regulations requiring 30% recycled content from FY26, increasing to 60% by 2028. - Total industry rPET capacity expected to be 200,000-250,000 tons by FY25 end; firm's rPET capacity currently 28,000 tons, expanding by 14,000 tons soon. - PET consumption expected to grow from 1.2 million tons currently to 2 million tons by 2039, doubling recycled content requirements. - Revenue mix is shifting from 65% textile sector to nearly 50% packaging sector within 1-2 years. - Legacy textile business expected to recover from H2 FY24, supporting volumes and margins.

- Revenue guidance for FY25 is in the range of INR 1600 to 2000 crores with operating margins of 16% to 18%, indicating growth optimism. (Page 15) - The company expects turnover of about INR 1800 to 2000 crores once capacities are fully operational, including ramp-up of new plants like Warangal. (Page 15) - Expansion plans are underway with capacity additions expected by end of FY26 to early FY27, contributing to future earnings growth. (Page 10) - Current EBITDA margins in the subsidiary rPET business are strong (22%), with potential for improvement due to regulatory-driven demand ramp-up. (Page 7) - Debt reduction and lower interest costs (average borrowing cost ~8.5%) should positively impact profitability and EPS going forward. (Page 13) - Stabilization in textile sector demand expected from mid-FY25 may improve legacy business profitability alongside growth in rPET segment. (Page 10) - Overall, steady top-line growth with margin expansion and increased operating leverage is anticipated over the next 2-3 years.

- The order book for the legacy textile business is relatively short-term, typically around 1 to 2 months. - There is an observed improvement in sector demand starting from August. - Sales include a mix of spot orders and some long-term contracts; multi-year contracts are also under discussion. - For FY25, sales turnover guidance is INR 1500 to 1600 crores on a consolidated basis, with margins around 16%. - Subsidiaries are expected to contribute sales of about INR 1700 to 1800 crores when fully operational. - No specific quantified figures for pending orders or a longer-term order book were provided.