Kriti Industries

- The company has not made any definitive decisions regarding new fundraising through debt or equity as of now. - For further CAPEX related to entering new states or setting up new facilities, the company plans to take a call after reviewing performance over two to three quarters. - CAPEX will be incremental and dependent on business growth and market conditions. - Financial costs have increased due to recent investments, indicating ongoing internal funding via debt. - Any future CAPEX or expansion will be carefully evaluated to decide if additional funding is required. - No explicit mention was made about raising funds through equity at this stage.

- Kriti Industries is seriously evaluating additional CAPEX and new facility setups but will decide after reviewing performance over two to three quarters. - For building products, CAPEX is a continuous need to expand product range and improve designs, timing depends on achieving critical growth milestones. - Current CAPEX of Rs. 30-35 crores supports business up to about Rs. 100 crore; further growth to Rs. 140-150 crore may require incremental Brownfield CAPEX of approximately Rs. 15-20 crore. - Expansion will depend on ramping up line throughput capacity. - No immediate CAPEX decision made; options are under active consideration based on evolving business scenarios.

- The company registered 32% volume growth and 43% value growth YoY in FYQ224, with sales volume at 11,150 MT. - Good demand is expected going forward due to comfortable raw material prices and normalizing monsoons. - Building products business is expected to see a "fairly good quantum jump" in volumes next year, with efforts continuing in product development and market penetration. - Current dealer network and marketing strength can scale building products from Rs. 100 crore to Rs. 250 crore without new geographic expansion, by improving market share. - Agriculture and building product segments show steady growth; industrial segment growth is stable but more circumscribed due to payment risks. - Industry growth is expected around 7%-8% annually; the company aims for growth slightly above this. - CAPEX will be aligned with growth targets; additional investments of Rs. 15-20 crore may be needed if ambition rises beyond Rs. 100 crore in building products. - Capacity utilization to improve as volumes ramp up, especially from Q3 onwards.

- The company expects good demand growth driven by comfortable raw material prices and ongoing market penetration efforts in agriculture and building products segments. - Building products division is anticipated to see a significant volume jump and revenue growth beyond Rs. 100 crore, with potential to scale to Rs. 250 crore by increasing market share without new state entries. - EBITDA margins are expected to improve gradually as promotional and development expenses stabilize, with margin expansion likely from next year onward. - CAPEX for building products will be continuous but incremental, tied to achieving critical volume milestones; additional CAPEX likely if aiming for growth beyond Rs. 150 crore. - Overall industry growth anticipated at 7-8%, with Kriti aiming to exceed this, targeting volume and value growth. - Real margin improvements expected in the medium term, post ongoing investment phase, with positive outlook on earnings and profitability from FY25 onwards.

- The management did not provide specific figures regarding the current or expected order book or pending orders during the call. - Shiv Singh Mehta mentioned that demand is good across segments (agriculture, building products, industrial solutions). - They are cautiously managing credit risk, especially in institutional sales with EPC contractors, due to payment-related challenges. - Focus remains on ramping up existing markets and making incremental capacity expansions based on demand growth. - The company aims to evaluate new CAPEX and facility expansions after reviewing two to three quarters of performance. - There is a continued emphasis on market development and promotional activities to drive growth, particularly in building products.