Any current/future new fundraising through debt or equity?

Kaya Limited is planning a rights issue as a part of its fundraising strategy. The rights issue is intended to bring in additional funding to the company. Proceeds from the rights issue will be used to retire existing debt, specifically the INR195 crores borrowings. Completion of the rights issue is contingent upon the completion of the sale of the Middle East business. The sale of the Middle East business will fetch approximately INR195 crores, which will be partly used to repay the Kotak loan (INR50 crores) and the remaining INR145 crores after the rights issue. Management is currently waiti

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

Kaya Limited has restarted expansion to add growth, opening 4 new clinics in the last 12 months, signing 2 more, and searching for additional clinics. The company aims to use proceeds from the rights issue to retire debt and have more capital for further expansion and investments. Focus on clinic refresh initiative: relocated 6 clinics in the year, renovated 11 clinics, improving collections significantly. Investing in scaling up the product business, including launching new products (NPDs) in haircare and nutraceuticals. Starting to scale up omnichannel activities to get closer to customers a

Future growth expectations in sales/revenue/volumes?

Kaya's product business, currently at 18% of total revenue, is expected to grow further as the company focuses on launching new product developments (NPDs) and expanding haircare segments. Nutraceuticals, a newly launched product line, has shown good growth and is anticipated to contribute as a growth driver. The company experienced a 21% revenue growth in India standalone in Q4 FY '24 and aims to continue growing clinic revenues with expansion plans (6 new clinics signed/opened recently). Service business, including body contouring and haircare, is growing rapidly (body contouring up 77%, hai

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

Kaya India’s clinic business revenue grew 24% in Q4 FY'24, indicating robust growth momentum. Product business within clinics grew 25%, driven by hair care, skin care, and nutraceuticals, with nutraceuticals growing 31%. Clinic EBITDA improved to 28% in Q4 FY'24, targeting stabilization at 30-32%. All India clinics are EBITDA positive; company EBITDA at standalone India level is around 2-3%. The company aims to reduce debt post Middle East sale and complete a rights issue to fund further expansion. Product business, currently 18% of revenue, expected to grow at 20-25% yearly backed by a strong

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Kaya LtdQ1 FY24Leisure Services

Kaya Ltd Q1 FY24 Earnings Call Analysis

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

Price: ₹252Market Cap: ₹395 CrSector: Leisure Services

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

→Kaya's product business, currently at 18% of total revenue, is expected to grow further as the company focuses on launching new product developments (NPDs) and expanding haircare segments.
→Nutraceuticals, a newly launched product line, has shown good growth and is anticipated to contribute as a growth driver.
→The company experienced a 21% revenue growth in India standalone in Q4 FY '24 and aims to continue growing clinic revenues with expansion plans (6 new clinics signed/opened recently).
→Service business, including body contouring and haircare, is growing rapidly (body contouring up 77%, haircare 18% in Q4 FY '24).
→Kaya plans to upscale its omnichannel presence, making products accessible closer to customers through stores and e-commerce.
→Management targets sustainable growth of 20-25% annually in product sales based on a strong product pipeline.
→Overall, Kaya India’s clinic and product business together show promising growth trajectories supported by enhanced customer experience (NPS score of 88).

Margin guidance

Category 3

→Kaya India’s clinic business revenue grew 24% in Q4 FY'24, indicating robust growth momentum.
→Product business within clinics grew 25%, driven by hair care, skin care, and nutraceuticals, with nutraceuticals growing 31%.
→Clinic EBITDA improved to 28% in Q4 FY'24, targeting stabilization at 30-32%.
→All India clinics are EBITDA positive; company EBITDA at standalone India level is around 2-3%.
→The company aims to reduce debt post Middle East sale and complete a rights issue to fund further expansion.
→Product business, currently 18% of revenue, expected to grow at 20-25% yearly backed by a strong new product pipeline and omnichannel scaling.
→Management intends to exit international business post-sale, eliminating further impairment risks.
→Clinic count expansion resumed with new clinics opening, alongside clinic refresh initiatives driving customer growth.
→Overall revenue growth target remains above market (~17%), with recent 21% growth as reference.

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Fundraise plans

Yes

→Kaya Limited is planning a rights issue as a part of its fundraising strategy.
→The rights issue is intended to bring in additional funding to the company.
→Proceeds from the rights issue will be used to retire existing debt, specifically the INR195 crores borrowings.
→Completion of the rights issue is contingent upon the completion of the sale of the Middle East business.
→The sale of the Middle East business will fetch approximately INR195 crores, which will be partly used to repay the Kotak loan (INR50 crores) and the remaining INR145 crores after the rights issue.
→Management is currently waiting for the sale of the Middle East business to complete before providing further updates on the rights issue process.
→No new debt fundraising was mentioned beyond the repayment plan.

Order book

The provided transcript and document pages do not mention any information related to current or expected order book or pending orders for Kaya Limited. The discussion mainly focuses on: - Business performance in India and Middle East. - Growth of clinic and product businesses. - Exit from international business post-sale. - Financial metrics like EBITDA, debt, impairment, and rights issue. - Product strategy, especially in haircare and nutraceuticals. - Clinic expansion and profitability status. No details on order book or pending orders are provided in the material shared.

Capex plans

Yes

→Kaya Limited has restarted expansion to add growth, opening 4 new clinics in the last 12 months, signing 2 more, and searching for additional clinics.
→The company aims to use proceeds from the rights issue to retire debt and have more capital for further expansion and investments.
→Focus on clinic refresh initiative: relocated 6 clinics in the year, renovated 11 clinics, improving collections significantly.
→Investing in scaling up the product business, including launching new products (NPDs) in haircare and nutraceuticals.
→Starting to scale up omnichannel activities to get closer to customers and territories.
→AI-based doctor app launched to improve customer engagement and clinical outcomes, indicating investment in technology-driven service enhancements.

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