Inox India Ltd

- As of December 2024, INOX India Limited has a comfortable net free cash balance of INR 293 crores. - This cash position provides adequate room to raise debt in the future if needed. - During the call, the management did not mention any specific plans for immediate new fundraising through debt or equity. - They indicated flexibility and readiness to expand capacity and respond to orders quickly, implying potential future capital requirements. - Currently, no explicit announcements regarding upcoming fundraising through debt or equity were made.

- INOX India invested around INR 80 to 100 crores in Capex last year and plans a similar investment in the current year. - The company is prepared with sufficient infrastructure and capacity for the next 2 years, with readiness for expansion if large orders come. - Infrastructure improvements include the fully ready Savli plant for beverage kegs and the upcoming commissioning of the Cryoshop plant by end of March. - Further Capex will be undertaken quickly to respond to higher order volumes when needed. - Capacity expansion and infrastructure build-out ongoing to support planned growth; expected to complete by end of March. - The company is also investing in certifications and approvals as strategic enablers, e.g., FSSC 22000 and IATF certifications. - No specific large future Capex quantified, but flexibility to scale up quickly based on new big orders.

- The company targets an 18%-20% year-on-year revenue growth, with a 20% increase expected for FY '26. - Order book stands strong at around INR 1,340 crores with more orders expected, supporting smooth revenue growth next year. - Q4 is expected to outperform Q3 historically, with planned revenues of over INR 400 crores to achieve annual targets. - LNG segment is seen as a major growth driver, with several large orders and projects underway globally. - Beverage kegs segment targets scaling up to 300,000 kegs within 1-2 years, though scale-up has been slower initially due to approval processes. - Emerging areas like liquid air storage, small-scale LNG terminals, semiconductor-related tanks, and steel plant expansions indicate robust future opportunities. - The company has invested in infrastructure capacity expansions, ready to support increased business for the next 2 years without immediate Capex increments. - Recurring business and service components are being explored to smoothen lumpiness in order inflows.

- INOX India anticipates revenue growth of 18% to 20% year-on-year for FY '26 and beyond, sustaining this as a medium-term guidance. - EBITDA margins are expected to remain stable in the range of 21% to 25%, with potential slight improvement driven by large mega-projects. - The order book is strong with INR 1,340 crore for the next year, and additional orders under negotiation, supporting robust execution. - LNG segment and cryogenic business are key growth drivers, with significant global demand and strategic projects underway, including the Bahamas LNG order. - Long-term growth supported by expansion in steel plants, semiconductor industry, and green energy projects (e.g., liquid air storage). - Management confident of doubling EBITDA in 3 to 4 years, targeting INR 500-600 crore EBITDA, though maintaining realistic EBITDA multiple due to international competition. - Q4 typically sees the highest revenues and profits, supporting the annual targets. - Overall EPS is expected to grow on the back of steady revenue and margin expansion.

- Current order backlog as of December 31, 2024: INR 1,341 crores. - Order composition: 45% Industrial Gas, 36% LNG, 19% Cryo-Scientific division. - Exports form 63% of total order backlog. - Around 125 LNG trailers backlog currently at production, capacity being increased. - Pending stations: 8 to 10 fueling stations awaiting resolution of land acquisition/customer issues, expected by end of March. - Additional 15 to 20 fueling station tenders expected soon from GAIL and BPCL; private companies also interested, with 50 to 75 new stations anticipated next year. - Large ongoing orders include major LNG projects like The Bahamas (15,000 metric storage facility) and Highview Power in the UK. - Pipeline orders for FY '26 expected to be substantially good; next year revenue target at least 20% higher than current year-end.