Kewal Kiran Clothing Ltd

- Planned capex of around INR 30-35 crores over the next 2 years. - Capex focused on enhancing manufacturing capacity and expanding retail business, including opening new Exclusive Brand Outlets (EBOs). - Office development property purchase underway, with construction and associated cash flows expected over 3 years; no immediate major impact on cash flow. - Manufacturing capacity currently utilized at nearly 100%; capex to build additional capacity aligned with anticipated growth. - Right-of-use (ROU) assets expected to increase due to new retail stores under lease; this is in line with accounting standards for rental properties. - No immediate plan for significant new investments beyond these capex and office development projects. - Kraus acquisition payments are staggered over 3 years, totaling INR 50 crores outflow, separate from capex plans.

- The company expects double-digit growth in sales/revenue from Q4 FY '25 onwards, as production schedules have been streamlined. - Q3 tertiary sales grew by 14%, indicating sustained growth in coming quarters. - Kraus brand is projected to grow 15%-20% year-on-year with continued retail expansion and exports. - Planned capex of around INR 30-35 crores over 2 years will enhance manufacturing capacity and retail expansion, supporting growth. - Retail expansions include adding 50-60 Killer EBOs and 40-50 Lawman EBOs in the next year. - Inventory levels are being built up to optimal levels to support growth momentum. - The company aims to sustain healthy volume growth in apparel both on standalone and consolidated basis. - EBITDA margins are expected to be in the range of 18%-20%, reflecting stable profitability alongside growth.

- The company expects double-digit revenue growth in FY 2026 and onwards. - EBITDA margins are anticipated to be maintained in the range of 18% to 20%. - Gross profit margin has recently decreased due to higher discounting and inability to take price increases, but no direct future margin improvement was indicated. - Capex of around INR 30-35 crores planned over the next 2 years to enhance manufacturing capacity and retail expansion, supporting growth. - Integration and expansion of Kraus brand expected to add to revenue and EBITDA growth, with sustainable EBITDA margins of 18%-20% for Kraus. - Other income is expected to normalize to INR 8-9 crores annually. - Expansion of exclusive brand outlets (EBOs), especially Lawman and Kraus, is a key growth driver. - Double-digit growth momentum expected to sustain from Q4 FY 2025 onwards.

- The company experienced order fulfillment challenges in Q1 and Q2 of FY '25 due to attempts at just-in-time production. - Despite having a strong order book during this period, they were unable to supply products on time. - From Q2 FY '25 onwards, the company restored its earlier production timelines. - Production schedules are now streamlined. - It is expected to take 6 to 9 months to reach optimal inventory levels. - The management is optimistic about seeing double-digit growth starting from Q4 FY '25, indicating a healthy order book outlook.

- There is no explicit mention of any current or planned fundraising through equity in the call. - The company has a short-term debt of around INR 100 crores, primarily due to Kraus payments and purchase of office property. - Hemant Jain mentioned that there is no immediate requirement for significant cash outflow except ongoing construction over a 3-year plan. - Hemant Jain stated there is no indication of a plan to repay debt at the moment; the debt arose mainly from acquisitions and property purchases. - No plans for dividend increase or buyback are currently made, indicating cautious cash management. - Capex of INR 30-35 crores over next 2 years will be funded likely through internal accruals; no mention of raising external funds for capex. - Overall, there is no clear plan announced for raising new debt or equity funding in the near term.