Hikal Ltd

- No specific mention of new fundraising through debt or equity in the provided transcript. - CAPEX investments are primarily funded through internal accruals and careful investment decisions. - Kuldeep Jain mentioned being open to investing in new CAPEX only if there is a strong business case. - No explicit plans or guidance about raising fresh capital through debt or equity were disclosed during the call. - The company is focusing on utilizing existing capacities and strategic debottlenecking to enhance growth and returns.

- FY24 CAPEX was about Rs.230 crores, with approximately Rs.140 crores spent on the animal health segment (page 16). - The animal health plant has started operations and no immediate further CAPEX is planned unless future debottlenecking or additional reactors are needed (page 16). - For FY25, estimated CAPEX is around Rs.100-120 crores, mainly for debottlenecking and infrastructure upgrades (page 9). - Beyond FY25, the company is open to CAPEX investments provided there is a strong business case (page 9). - Most CAPEX in recent years focused 55-60% on growth initiatives, with commercial supply starting from H2 FY26 (page 9). - Debottlenecking opportunities with high short-term ROI exist in food ingredients, pharma, and crop protection segments (page 9). - No major new CAPEX is expected next year unless big new contracts or business requirements arise (page 9).

- Hikal targets a medium-term sales growth of 12-15% annually, driven by the pharmaceutical and crop protection segments. - The company expects the animal health business to contribute significantly, aiming for commercial-scale production and revenue ramp-up over 2-2.5 years post-validation. - Crop protection business anticipates recovery towards the end of FY25, after destocking and inventory normalization. - The CDMO business maintains a strong pipeline with consistent new product launches, expected to increase the CDMO share back to historical levels. - New multi-purpose facility and CAPEX investments (about Rs. 200+ crores) are expected to support volume growth and capacity utilization improvements starting FY25-26. - Growth in legacy APIs and food ingredients pipeline (expected peak around 2026) will add to revenue. - Overall, the company is optimistic about the medium to long-term growth potential due to supply chain shifts from China and demand recovery.

- Hikal Limited expects steady top-line growth of 12-15% over the next 3-5 years, driven by pharma and crop protection segments. - Pharma business shows a positive trend with stabilized raw material prices and improved margin profile; EBIT margin for Q4 FY24 was 15.9%. - EBITDA margin improved by 220 basis points YoY to 18.4% in Q4 FY24, with strong sequential revenue growth of 15%. - Full capacity utilization and new growth CAPEX ramp-up over the next 2-3 years is expected to drive margins above 20% and ROCE into the high teens. - Animal health segment expected to contribute commercial quantities in 14-18 months post-validation, potentially adding Rs.300-400 crores revenue over 4-5 years. - Crop protection business is poised for medium to long-term recovery post current destocking and price pressures, with normalization expected by end of FY25. - Focus on global innovators and CDMO segment with better margin profiles to strengthen operating profits.

- The CDMO business maintains a healthy pipeline of enquiries from both current and prospective clients. - Numerous projects in the crop protection segment are in the advanced stage of discussion with existing innovator customers and new clients, expected to come onstream in the next few years. - There is strong interest from global innovators to move supply chains out of China, leading to new project opportunities in India with new chemistries and technologies. - The company is focused on molecules with better margin profiles to strengthen its position and drive mid-to-long-term growth. - Validation batches for animal health products are ongoing, with commercial orders expected to start about 14 to 18 months post-validation. - Overall, there is a strong orderbook and encouraging enquiries indicating a positive outlook for upcoming contract wins and volume ramp-ups.