Any current/future new fundraising through debt or equity?

Gravita India Limited plans majorly to fund its INR 600 crore capex (until FY '27) through internal accruals. There is no plan for incremental debt except for small working capital requirements. The company has sufficient cash flow to fund incremental capex and part of working capital. Current gross debt is around INR 550 crores, with net debt around INR 470 crores. No significant equity fundraising is mentioned in the provided information. Capex for FY '25 is estimated around INR 180 crores, mostly self-funded.

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

FY '25 capex estimated at approximately INR180 crores: - INR140 crores for existing verticals - INR40 crores for new verticals (including lithium-ion battery recycling) Lithium-ion battery recycling: - Around INR40 crores capex in FY '25 - Total expected INR70-100 crores in next few years - Pilot project phase ongoing with hydrometallurgy technology development Rubber recycling plant at Mundra: - Annual capacity of 9,000 tons - Capex approximately INR30 crores - Expected operational in H1 FY '26 Aluminum capacity expansion: - New aluminum capacity being i

Future growth expectations in sales/revenue/volumes?

Gravita targets a volume CAGR of 25% over the next 3 years (FY '25 to FY '28). Revenue grew by 29% in Q1 FY '25, with lead, aluminum, and plastic volumes increasing accordingly. PAT is expected to grow over 35% CAGR in the coming years, outpacing volume growth. Capacity is planned to grow at a 19% CAGR for the next 3 years to support volume growth. Higher availability of domestic scrap is expected to improve capacity utilization from current 55%-67% to around 70%-75%. Volume growth is driven by increased demand in lead acid, aluminum recycling, and emerging verticals like plastics an

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

Volume growth target: 25% CAGR over the next 3 years. Profitability (PAT) growth target: Over 35% CAGR in the next 3-4 years. ROCE target: Exceed 25%. FY '28 PAT expected around INR 750-800 crores if targets are met. EBITDA margins expected to improve with value-added product mix and operational scale. Capacity utilization aimed to reach 70-75%, supporting volume growth. New verticals (plastic, rubber, lithium-ion battery recycling) expected to contribute positively to margins. Stable lead segment EBITDA margins now at INR 18-19/kg (improved from INR 17-18). Aluminum recycling sustainable EBIT

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Gravita India LtdQ2 FY24Minerals & Mining

Gravita India Ltd Q2 FY24 Earnings Call Analysis

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

Price: ₹1,721P/E: 32.9Market Cap: ₹12.5K CrSector: Minerals & Mining

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Gravita targets a volume CAGR of 25% over the next 3 years (FY '25 to FY '28).
→Revenue grew by 29% in Q1 FY '25, with lead, aluminum, and plastic volumes increasing accordingly.
→PAT is expected to grow over 35% CAGR in the coming years, outpacing volume growth.
→Capacity is planned to grow at a 19% CAGR for the next 3 years to support volume growth.
→Higher availability of domestic scrap is expected to improve capacity utilization from current 55%-67% to around 70%-75%.
→Volume growth is driven by increased demand in lead acid, aluminum recycling, and emerging verticals like plastics and rubber.
→New capacities (e.g., 50,000 tons addition during FY '25) and expansions in existing plants will support growth.
→Aluminum volume growth will reflect from Q2/Q3 FY '25; plastic volumes will start rising from next quarter.
→ESG initiatives and value-added product focus aim to raise non-lead business revenue share above 30%.

Margin guidance

Category 3

→Volume growth target: 25% CAGR over the next 3 years.
→Profitability (PAT) growth target: Over 35% CAGR in the next 3-4 years.
→ROCE target: Exceed 25%.
→FY '28 PAT expected around INR 750-800 crores if targets are met.
→EBITDA margins expected to improve with value-added product mix and operational scale.
→Capacity utilization aimed to reach 70-75%, supporting volume growth.
→New verticals (plastic, rubber, lithium-ion battery recycling) expected to contribute positively to margins.
→Stable lead segment EBITDA margins now at INR 18-19/kg (improved from INR 17-18).
→Aluminum recycling sustainable EBITDA forecasted at INR 14-16/kg, with hedging mechanisms adding stability.
→Increased domestic scrap availability and back-to-back hedging expected to drive consistent earnings growth.

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Fundraise plans

Yes

→Gravita India Limited plans majorly to fund its INR 600 crore capex (until FY '27) through internal accruals.
→There is no plan for incremental debt except for small working capital requirements.
→The company has sufficient cash flow to fund incremental capex and part of working capital.
→Current gross debt is around INR 550 crores, with net debt around INR 470 crores.
→No significant equity fundraising is mentioned in the provided information.
→Capex for FY '25 is estimated around INR 180 crores, mostly self-funded.

Order book

The provided transcript and pages from Gravita India Limited's Q1 FY '25 conference call do not explicitly mention details about the current or expected order book or pending orders. However, some relevant points related to business outlook and operations include: - Increased domestic scrap availability is driving business growth and reducing working capital days. - New contracts in India for aluminum with pricing based on M minus 1 and M minus 2 provide natural hedging. - Around 80% of scrap procurement in India is through OEMs, providing stable processing charge margins. - Expansion underway with new capacities being installed, e.g., aluminum capacity in Ghana expected soon. - New business verticals like lithium-ion and tyre recycling are planned, with plants expected operational in H1 FY '26. - No explicit mention of pending orders or current order book size in the call. If needed, detailed order book information may be available in the full annual report or investor presentations beyond the transcript provided.

Capex plans

Yes

→FY '25 capex estimated at approximately INR180 crores:
→ - INR140 crores for existing verticals
→ - INR40 crores for new verticals (including lithium-ion battery recycling)
→Lithium-ion battery recycling:
→ - Around INR40 crores capex in FY '25
→ - Total expected INR70-100 crores in next few years
→ - Pilot project phase ongoing with hydrometallurgy technology development
→Rubber recycling plant at Mundra:
→ - Annual capacity of 9,000 tons
→ - Capex approximately INR30 crores
→ - Expected operational in H1 FY '26
→Aluminum capacity expansion:
→ - New aluminum capacity being installed in Ghana, expected operational soon
→ - Additional capacity increases planned at Mundra and other plants
→Paper and steel recycling plants:
→ - Expected operational by FY '27
→ - Currently in due diligence phase
→No incremental debt planned for capex; funding primarily from internal accruals and cash flows

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