Krsnaa Diagnostics Ltd

- The company aims to maintain existing debt levels around INR53 crores as of March 2024 and does not foresee significant increases in the near term. - Debt discussed primarily relates to short-term working capital needs due to increased receivables and investment in capital expenditure (e.g., down payments on equipment). - Management’s stance is to try to be debt-free but expects to maintain manageable debt levels given business growth dynamics. - There is no explicit mention of any immediate or planned equity fundraising in the disclosed discussions. - Future decisions on capital expenditure, such as in the event of winning the Rajasthan project, will dictate if incremental borrowing is needed. - Some pay-per-use agreements initiated with partners aim to expand operations without heavy debt or asset commitments.

- FY '25 and FY '26 capex is expected around INR 150 crores, excluding Rajasthan. - If Rajasthan project comes through, capex could increase to around INR 250 crores (INR 50 crores incremental). - Exact Rajasthan capex to be clarified once project details are finalized. - Focus on asset-light model for B2C expansion, leveraging existing lab infrastructure with minimal incremental capex. - Investments include setting up of new pathology labs and deployment of radiology equipment such as CT scans and MRIs. - Maharashtra: 10 CT scans operationalized; 29 more to be operationalized soon with revenue expected from Q2 FY '25. - Continuous investment in quality accreditations like CAP and expanding test menu. - Plans to maintain debt levels to support capex and working capital needs without significant increase in overall debt.

- Krsnaa Diagnostics targets a robust revenue growth with a CAGR of approximately 25%-30% over the next 2-5 years. - FY’24 revenue was INR 620 crores with 27% YoY growth; strong momentum expected to continue. - Expansion is focused on radiology and pathology, with a 60:40 radiology to pathology mix anticipated. - New tenders and projects, especially in radiology (CT scans, MRIs), will drive incremental growth. - B2C business is an emerging segment expected to grow steadily, starting from around 2%-3% of revenue. - Mature PPP centers typically achieve higher margins and stable revenue growth after 3 years. - Investments in infrastructure and new capabilities are expected to convert into higher volumes and stable EBITDA margins (~25%) as projects mature.

- Krsnaa Diagnostics expects revenue CAGR of 25%-30% over the next 2-5 years, targeting around INR 3,000 crores by FY'29-FY'30. - EBITDA margins are expected to stabilize around 25% despite gross margin improvements due to increasing pathology share and incremental deployment costs. - Gross margins projected to improve from current 74% to about 78% by Q1/Q2 FY'25 after stabilizing consumption costs. - Initial incremental costs related to new projects, especially radiology, and leadership for B2C will absorb margin improvements in short term. - B2C business, currently a small percentage, is forecasted to grow gradually, with management aiming to maintain overall EBITDA and revenue growth without significant margin dilution. - Depreciation costs will remain steady due to revised accounting policies. - Operational efficiencies and matured PPP projects expected to drive profitability and cash flow improvements over time.

- The company is awaiting the outcome of the Rajasthan tender, which is delayed due to a High Court matter; hearing expected shortly (Page 7). - They have won a significant Maharashtra order valued at INR 150 crores (Page 15). - The pipeline includes tenders in Andhra Pradesh and other states, but some are on hold until post-election periods conclude (Page 7). - The company is monitoring execution progress of CT scan equipment, including an 8-machine tender in Uttar Pradesh, with some delays mainly due to site handover and procedural issues (Page 8). - Existing Maharashtra tenders (total 39 CT scans plus 17 MRI and CT scans) cover a majority of the state, with some municipalities still available for expansion (Page 8). - The management is confident about handling large orders including Rajasthan and Maharashtra once awarded, stating adequate bandwidth and financial readiness (Page 15).