Heranba Industries Ltd

- The transcript does not mention any current or planned fundraising through debt or equity. - Focus is on ongoing CAPEX at Sarigam facility with expected spend of around Rs.130-150 crores in FY23 and Rs.100-125 crores in FY24. - Management is confident of growth and operational performance, but no discussion on raising funds externally. - No indications of equity issuance or new debt plans during the call. - Emphasis remains on internal funding through operational cash flows and CAPEX for expansion.

- FY23 CAPEX guidance is around Rs. 130 to 150 crores. - FY24 CAPEX guidance is around Rs. 100 to 125 crores. - Total CAPEX spent on Sarigam facility till date is around Rs. 35 to 40 crores. - Sarigam facility Phase 1 production expected to commence by Q4 FY23. - Sarigam is a technical plant with expected turnover ratio of 3.5 to 4 times capacity. - The Sarigam facility will enable launch of new products and expand product portfolio. - The company is actively investing in R&D with about 15 products in development; 5 shortlisted for registration, 2 planned for launch next year. - Investments are aimed at increasing global registrations and entering new geographies like US and Europe. - The company remains confident of long-term growth and margin improvement backed by these investments.

- Management expects 16% to 18% revenue growth for FY23, driven approximately equally by volume and price increases. - Volume growth is guided around 8% to 10%. - Price hikes around 3% have been implemented to offset raw material cost inflation and maintain EBITDA margins. - Post Q1 challenges due to COVID and China lockdowns are easing, with expectations of recovery and robust growth in subsequent quarters. - New product launches (two planned in FY23) and increased registrations aim to expand product portfolio and customer base. - Ramp-up in exports to developed markets like US and Europe is expected from FY24 onwards after facility audits and regulatory clearances. - Sarigam facility commissioning by Q4 FY23 will contribute new molecules and production capacity, supporting growth. - Long-term EBITDA margin targets remain 18-20%, indicating confidence in sustainable volume and margin growth.

- Management revised FY23 guidance to 15%-17% sales growth and 16%-18% EBITDA margins, down from earlier 18%-20% guidance due to Q1 challenges. - They remain confident in long-term EBITDA margin guidance of 18%-20%. - Volume growth expected at 8%-10%, with price hikes (~3%) contributing to revenue growth. - Recovery expected in exports, particularly China, post lockdowns, leading to normalized growth in coming quarters. - New product registrations and launches (2 products planned in FY23) to drive growth and margin improvement. - Ongoing Sarigam facility CAPEX to start contributing from Q4 FY23, expected to support revenue growth with turnover ratio of 3.5-4x. - Management optimistic about overcoming short-term headwinds and expects robust earnings growth beyond FY23.

- After supplying the first consignment of insecticide to the US, Heranba made two supplies last year. - For the current year, they have received a tentative partial order for trial shipment. - Successful trial trials to lead to larger confirmed orders. - The previous two consignments included a trial order followed by a repeat order. - By Q3 end, the company expects clarity on the status of ongoing trial orders. - Several customer visits and audits are planned or underway, facilitating order ramp-up. - The Sarigam facility is gearing up with registrations and trials, expected to aid scaling volumes from next financial year. - Some soft visibility exists for new molecules, though no confirmed orders can be disclosed presently.