GRP Ltd

- The Company recently received approval from stock exchanges for a rights issue draft letter of offer intended for expansion and growth CAPEX. - Despite the approval, the timing of raising proceeds is yet to be decided based on cash flow clarity and investment needs. - The rights issue will be executed as and when the capital is required; no immediate fundraising is planned. - On the debt front, the Company has improved financial health by reducing working capital days (from 98 to 74) and improving key ratios (debt-equity ratio at 0.67, interest coverage at 6.63). - No specific mention of new debt fundraising in the near term. - The Company aims to take calls on capital raising aligned to opportunities and cash flow from the business, especially considering evolving EPR regime stability.

- GRP Limited is investing in capacity expansion for crumb rubber in two phases, with each phase expected to have a capacity of approximately 30,000-40,000 tons. Total project cost is estimated around Rs. 35-40 crore, excluding land acquisition. - The Company has invested Rs. 499 million in FY '24 in various projects including biofuel heating systems for energy cost saving, technology and site upgrades, firefighting systems, and land purchase at Solapur for the subsidiary. - Future investments include exploring downstream recycling opportunities like pyrolysis, recovered carbon black, and CRMB, though no final decision or investment in recovered carbon black technology has been made yet. - No new capacity investment is planned for repurposed polyolefin in the current financial year as existing capacity suffices. - Rights issue approvals are in place to fund expansion and growth CAPEX but the timing to raise proceeds will be decided based on cash flow needs and EPR clarity.

- GRP expects continued volume growth quarter-on-quarter, especially driven by tyre companies incorporating more circular materials. - Order book strength for reclaim rubber is expected to remain solid through 2025 based on projections from key customers. - Engineering plastics volumes grew 13% despite price volatility; continued volume increases are anticipated. - New product approvals in reclaim rubber and stabilized EPR regulations are expected to boost future earnings and cash flow. - Repurposed polyolefin portfolio is expected to stabilize and contribute significantly to consolidated financials in the coming years. - Expansion in crumb rubber capacity is underway, paving the way for future growth in pyrolysis, recovered carbon black, and crumb rubber modified bitumen (CRMB). - The company plans capacity expansions in engineering plastics once utilization hits 80%+. - Overall, GRP is exploring opportunities across 11 sectors under EPR, aiming to scale while maintaining financial discipline.

- GRP expects continued strength in reclaim rubber orders through 2025 based on customer projections. - New product approvals in reclaim rubber anticipated to boost future earnings. - EPR (Extended Producer Responsibility) regime is expected to stabilize in FY 2025, providing positive long-term cash flows for investments and scaling. - Engineering plastics volume grew 13% despite price volatility; further growth expected as the relationship with new partners strengthens. - Repurposed polyolefin products are expected to stabilize and contribute significantly to consolidated financials in coming years. - EBITDA margins have risen steadily with utilization improving; margins expected to improve further with higher capacity use. - Capacity expansions planned once utilization exceeds 80%, expected by end of the current financial year. - Continued focus on operational efficiencies, tighter working capital, and green energy use to support profitability growth. - Rights issue approvals are in place for CAPEX aligned with growth plans; timing of capital infusion will be decided based on cash flow needs.

- GRP Limited expects continued strength in its order book for most of 2025 based on projections received from key customers. - There is anticipation of approvals for new products developed during the year, likely to boost future earnings. - The company remains focused on expanding capacity, particularly in crumb rubber, to support future plans involving pyrolysis, recovered carbon black, and CRMB among others. - Overall, the outlook for orders is positive, supported by strong demand from tire companies incorporating more circular materials. - However, certain elements like EPR credits and new product approvals are still evolving and subject to regulatory clarity in the coming quarters.