GOCL Corporation Ltd

Based on the provided transcript from June 6, 2018: - There is no explicit mention of any current or future fundraising plans through new debt or equity. - The company has successfully reduced its short-term liabilities and almost nil long-term liabilities. - GOCL’s credit rating has improved by two notches (from BBB stable to A- for long term, and from A3+ to A2+ for short term). - Working capital interest rate has been reduced from 11.5% to 10%, indicating improved financial conditions. - The company has mainly used internal funds for CAPEX (90% from internal funds for Rs. 20 crores spent). - No announcements or indications regarding new fundraises via debt or equity issuance were reported during the call.

- GOCL Corporation spent Rs. 20 crores CAPEX for itself and subsidiaries in the financial year, with 90% funded through internal funds (Page 9). - Licenses received for enhancing capacities at four locations by 59,600 tons of bulk explosives; additional licenses applied for further capacity enhancement to meet rising demand (Page 5). - At Hyderabad Energetics plant, new equipment and machinery were installed, improving quality and production rates (Page 4). - Two new bulk plants added: 10,000 tons capacity in West Bengal and 6,000 tons in Chhattisgarh to boost production capacity (Page 4). - Ongoing strategic real estate development: 100-acre integrated township at Hyderabad with approvals in progress and plans to start work once permits are in place; delay noted but pushing for progress (Pages 7, 12, 13, 18). - Investment in merger of Houghton International with Quaker Chemical underway, valued around Rs. 439 crores, with closure expected by Sept-Oct 2018; rights to liquidate shares flexibly (Pages 7, 12, 18).

- Exports expected to grow by nearly 33%, driven by demand from South East Asia, Africa, Middle East, Gulf, and Eastern Europe. - Domestic business growth anticipated at about 20% due to improved mining activity and new orders. - Special Products Group (defense and space applications) expected to grow 25-30%. - Metal Cladding operations projected to grow by 50%, tapping into emerging demand for stringent specifications. - Overall business growth target averages around 25% across segments. - IDL Explosives cautiously expanding capacity with new licenses and enhanced production to meet increasing demand. - The company plans 22% top-line growth for the next year, exceeding industry growth of 7%. - PBT growth expected to outpace revenue growth, with a 22% PBT increase over five years and continued improvement anticipated.

- GOCL expects overall revenue growth of around 25% across segments, driven by: - Export growth targeted at ~33% - Domestic business growth at about 20% - Special Products Group aiming for 25%-30% growth - Metal Cladding segment targeting 50% growth - The explosives business PBT growth has been strong (22% over last 5 years) and expected to continue improving. - IDL Explosives expects higher capacity utilization and increased volumes, improving profitability. - Operating efficiencies and cost savings measures are ongoing to improve margins. - Mining sector uptake is cautious due to policy uncertainties but improving demand is expected. - Management remains optimistic about maintaining or improving Profit Before Tax (PBT) margins alongside revenue growth. - Dividend payouts maintained (IDL at 100%, GOCL at 80%), indicating stable profit outlook. - No explicit EPS guidance given, but growth in profits and operational efficiencies suggest positive EPS trajectory.

- Current domestic orders stand at approximately Rs. 562 crores. - An additional Rs. 200 crores worth of large orders from major mining companies are in the pipeline. - Orders on hand as mentioned by COO IDL Explosives are Rs. 554 crores, with an expectation of adding another Rs. 200 crores. - The orderbook consists of a balanced mix of business with Coal India (50%) and non-Coal India (50%). - The company expects robust demand with existing and new products to meet customer requirements. - Capacity enhancements are underway with licenses received for increasing explosive manufacturing capacity by 59,600 tons at four locations. - The market outlook shows positive growth trends domestically and internationally.