Gokaldas Exports Ltd

- As of March 31, 2024, Gokaldas Exports had a net debt of INR 336 crores following acquisitions funded by debt and equity. - In April 2024, the company raised INR 600 crores through a qualified institutional placement (QIP), turning net cash positive. - There is no specific mention of immediate plans for new fundraising via debt or equity after this QIP. - Focus is on operational improvements and capacity ramp-up before further expansions. - Any future capex and expansions will be aligned with capacity utilization, implying that new fundraising may be considered as capacity reaches full utilization.

- INR 100 crores capex planned for FY '25, allocated as: - INR 40 crores for the new Bhopal unit - INR 50 crores for improving efficiency and profitability (INR 25 crores for existing units, INR 10 crores for Matrix, INR 15 crores for Atraco) - INR 10 crores for the fabric processing unit - Expansion plans: - Madhya Pradesh (MP) greenfield facility ramping up; full capacity utilization expected by mid-Q2 FY '25 - Tamil Nadu fabric unit in trial production; commercial production expected early next quarter FY '25 - Potential additional factory expansions in low-cost locations within India - Atraco capacity expansion of 20-25% likely towards the end of FY '25 or early FY '26 - Matrix expansions also expected towards back end of FY '25 or early FY '26 - Capex for expansions to be initiated once full capacity utilization is reached in respective units

- The company aims for a consistent ~15% year-on-year revenue growth over the next several years. - FY '25 growth in acquired companies (Atraco and Matrix) may focus first on ramping up capacity and margin improvements rather than growth, with stronger growth expected FY '26 onwards. - Base Gokaldas entity is expected to continue aggressive growth immediately. - Capacity expansions planned in Gokaldas standalone and Atraco units toward late FY '25 and FY '26 to support growth. - Volume growth is expected to drive most of the revenue increase; price growth is expected to be minimal in the near term due to market conditions. - Full capacity utilization aims for second half of FY '25 in acquired companies, facilitating revenue growth. - Demand environment improving with expected easing of pricing pressure and increased sourcing from India in the medium term. - Overall confident in strong revenue growth and margin improvement going forward.

- The company targets a ~15% year-on-year revenue growth, expecting this trend to continue over the next several years. - Growth for acquired entities Atraco and Matrix will focus on capacity utilization and margin improvement initially, with stronger growth from FY '26 onward. - Margin improvement is a key focus, with standalone Gokaldas confident in productivity gains offsetting cost pressures. - Atraco and Matrix aim to improve EBITDA margins to near Gokaldas levels within 1 to 1.5 years. - Operational improvements and demand recovery are expected to reduce pricing pressures, aiding margin expansion particularly in FY '26. - Expansion and capacity additions at standalone Gokaldas and Atraco are planned from late FY '25 to FY '26 to support growth. - Earnings and operating profits are expected to improve steadily as margins and volume growth normalize and expand post-integration.

- Gokaldas standalone entity is currently at 100% capacity utilization and is chock-a-block with orders, unable to take more. Efforts are ongoing to add more capacity and manpower to meet demand. - Atraco and Matrix entities are operating at around 80-85% capacity utilization currently. - Early market indications suggest Atraco and Matrix should reach close to 100% utilization by H2 FY25, contingent on demand visibility in Q2. - Strong order backlog exists due to the inventory destocking cycle closing and renewed buying appetite from brands. - The company aims for a 15% year-on-year growth and capitalizes on new capacities and acquisitions to support increasing order volumes. - Demand environment remains cautiously optimistic, with potential easing of pricing pressure and margin improvements as market conditions improve.