Any current/future new fundraising through debt or equity?

There is no direct mention of any current or planned new fundraising through debt or equity in the transcript. The company’s total borrowings as of Q1 FY24 stand at about ₹21-22 crores in long-term loans, with short-term borrowings varying seasonally. The management indicated that borrowings fluctuate with inventory and seasonal demands but expect no significant jump in total borrowings compared to the previous year. No specific plans for raising new debt or equity were discussed. The focus appears to be on internal growth and capacity expansion funded through existing financial resources and

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

Kriti Industries is planning capital expenditure of around INR 10-15 crores this financial year primarily for building products. The CAPEX will focus on creating additional fittings for moulds and expanding capacity to meet market demand. The company is working on expanding building products capacity beyond the existing 6600 tons, targeting 8000-9000 tons volume in FY24. By October-November, the company expects to finalize plans for next phase of investments based on market growth and product focus for FY25. Management is studying the option of entering new regions/territories beyond existing

Future growth expectations in sales/revenue/volumes?

The company expects around 10% revenue growth by year-end FY24, with quarter-to-quarter improvements. Volume growth is optimistic, especially in agriculture and building products segments. Building products volumes are expected to reach 8,000-9,000 tons in FY24, up from current capacity constraints. New capacity expansion (~10-15 crore CAPEX) planned to support building products growth. Market expansion into newer states (beyond Maharashtra, MP, Rajasthan) is being evaluated for additional volume growth. Stable or slightly improved PVC resin prices may support EBITDA margins of 10%-1

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

The company expects around 10% revenue growth for the full financial year 2024, with quarter-to-quarter improvement. EBITDA margins at current PVC resin prices (around Rs. 80/kg) are estimated steady at 10-12%. Adjusted EBITDA margin in Q1 was 8-9% due to inventory loss. Profitability is expected to improve as PVC resin prices have bottomed and are expected to stabilize or increase. Management is optimistic about volume growth in both building products and agriculture segments due to favorable crop conditions, pent-up demand, and stable raw material prices. Volume growth in building products i

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Kriti Industries (India) LtdQ2 FY23Industrial Products

Kriti Industries (India) Ltd Q2 FY23 Earnings Call Analysis

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

Price: ₹71.7Market Cap: ₹433 CrSector: Industrial Products

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→The company expects around 10% revenue growth by year-end FY24, with quarter-to-quarter improvements.
→Volume growth is optimistic, especially in agriculture and building products segments.
→Building products volumes are expected to reach 8,000-9,000 tons in FY24, up from current capacity constraints.
→New capacity expansion (~10-15 crore CAPEX) planned to support building products growth.
→Market expansion into newer states (beyond Maharashtra, MP, Rajasthan) is being evaluated for additional volume growth.
→Stable or slightly improved PVC resin prices may support EBITDA margins of 10%-12%.
→Optimism on better traction in newer regions such as some southern states and UP, enhancing volume growth potential.
→Marketing and distribution efforts are ongoing to strengthen brand and expand market penetration.
→Industrial segment volumes expected to stabilize around 4,000-5,000 tons in Q3 and Q4.

Margin guidance

Category 3

→The company expects around 10% revenue growth for the full financial year 2024, with quarter-to-quarter improvement.
→EBITDA margins at current PVC resin prices (around Rs. 80/kg) are estimated steady at 10-12%. Adjusted EBITDA margin in Q1 was 8-9% due to inventory loss.
→Profitability is expected to improve as PVC resin prices have bottomed and are expected to stabilize or increase.
→Management is optimistic about volume growth in both building products and agriculture segments due to favorable crop conditions, pent-up demand, and stable raw material prices.
→Volume growth in building products is expected to continue month-on-month; industrial volumes to stabilize at 4,000-5,000 tons per quarter.
→Operating efficiency and better product mix (higher building products proportion) could reduce volatility and improve margins.
→The company aims to maintain or exceed planned revenue and volume growth targets, subject to market conditions and support from strengthened distribution.

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Fundraise plans

→There is no direct mention of any current or planned new fundraising through debt or equity in the transcript.
→The company’s total borrowings as of Q1 FY24 stand at about ₹21-22 crores in long-term loans, with short-term borrowings varying seasonally.
→The management indicated that borrowings fluctuate with inventory and seasonal demands but expect no significant jump in total borrowings compared to the previous year.
→No specific plans for raising new debt or equity were discussed.
→The focus appears to be on internal growth and capacity expansion funded through existing financial resources and a moderate CAPEX of ₹10-15 crores for building products.
→The company is monitoring market conditions and growth opportunities but has not announced any fundraising activities at this time.

Order book

The transcript does not explicitly mention the current or expected order book or pending orders. However, relevant insights related to demand and market growth include: - Good widespread rains and favorable crop conditions indicate optimistic volume growth in the agricultural segment. - The company expects volume growth in building products and agri segments due to market expansion in new states. - Ongoing registration approvals and starting supply to schemes like Jal Se Nal suggest increasing future orders. - The company anticipates steady demand in industrial volumes, maintaining about 4,000 to 5,000 tons per quarter. - The management is optimistic about growth, targeting 10% to 12% topline growth for FY24. - Expansion plans include additional investments and capacity increases to meet expected demand growth, especially in building products aiming for 8,000-9,000 tons annually. - Distribution strengthening efforts aim to improve market reach and order fulfillment in newer geographies like Southern states and UP. No specific order book values are disclosed.

Capex plans

Yes

→Kriti Industries is planning capital expenditure of around INR 10-15 crores this financial year primarily for building products.
→The CAPEX will focus on creating additional fittings for moulds and expanding capacity to meet market demand.
→The company is working on expanding building products capacity beyond the existing 6600 tons, targeting 8000-9000 tons volume in FY24.
→By October-November, the company expects to finalize plans for next phase of investments based on market growth and product focus for FY25.
→Management is studying the option of entering new regions/territories beyond existing core states and may take a decision by the end of the financial year.
→No significant jump in total borrowing is expected despite expansion and inventory management, with current long-term borrowings around INR 21-22 crores.

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