Krsnaa Diagnostics Ltd

- The transcript from the earnings call on page 22 and surrounding pages does not mention any current or planned fundraising through debt or equity. - As of September 30, 2023, the company holds a gross debt of Rs. 109 crores but maintains a net debt-free status with Rs. 236 crores in cash and cash equivalents. - No specific references were made to raising additional funds via debt or equity in the near future. - The management focuses on organic growth through existing projects and new tenders without highlighting fundraising plans. - Any significant capital expenditures, such as on Rajasthan, are currently minimal and expensed rather than capitalized. - For inquiries, investors are encouraged to contact the Investor Relations Team, but no fundraising announcements were disclosed in this call.

- The company is investing in setting up new laboratories and collection centers as part of various Public-Private Partnership (PPP) projects across states like Assam, Odisha, Maharashtra (CT project), Himachal Pradesh, and Mumbai (BMC project). - They have invested in expanding the Mumbai lab to support the rapid operationalization of around 462 centers under the BMC contract. - Ongoing capex includes setting up Radiology centers, Pathology labs, and collection centers which require upfront costs for equipment, manpower, interiors, infrastructure, and logistics. - While initial quarters incur higher expenses due to front-loaded investments, these centers typically mature after 2-3 years, leading to improved margins. - No significant capitalization has been made for the Rajasthan project yet; only operational expenses have been incurred and expensed out. - They expect capex costs to reduce over time as projects mature and ramp up operations, contributing positively to margins going forward.

- The company targets a sustained revenue growth of approximately 30% CAGR for FY24 and FY25, excluding the Rajasthan project. - FY24 expects around Rs. 600 crores revenue with Rs. 180-200 crores per quarter in FY25. - New projects in Odisha, Assam, Maharashtra CT, Himachal Pradesh, and BMC are key growth contributors for FY25. - Rajasthan project revenue potential has revised upward to Rs. 300 crores due to district reorganization, though commercialization may shift to FY25. - Additional tenders, including a large radiology tender in Andhra Pradesh and others in the pipeline, are expected to add Rs. 140 to Rs. 200 crores top-line by FY25 and beyond. - Mature centers and existing projects also expected to grow at 8-30%, supporting overall 30% growth trajectory. - B2C business segment gradually scaling up with positive early traction.

- Krsnaa Diagnostics expects to maintain a 30% year-on-year revenue growth trajectory for FY25, supported by ramping up projects in Odisha, Assam, Maharashtra (CT project), BMC (Mumbai), Himachal Pradesh, and Punjab. - EBITDA margins are projected to improve, targeting a sustainable range of 26-28% for FY24, with further margin expansion anticipated in FY25 as more projects mature and operational efficiencies improve. - The company expects reported EBITDA margins of around 25% for FY24, including the impact of ongoing implementation costs, which will reduce as projects mature. - Net profit margins grew to 7% in Q2 FY24 and 12% normalized in H1 FY24; projections indicate continued growth in profitability with operational scale and cost control. - The ramp-up of new labs and centers, including expected contributions from Assam and Odisha starting Q4 FY24, are key to margin and profit growth. - B2C segment growth and expansion into wellness packages add incremental revenue streams. Overall, Krsnaa Diagnostics anticipates robust future earnings growth driven by strategic project implementations and operational efficiencies.

- Rajasthan contract: Revenue potential revised from Rs. 150 crores to Rs. 300 crores due to reorganization of districts from 33 to 50; contract terms remain unchanged. Pending execution of agreements expected soon after High Court order; commercial revenues anticipated from next fiscal. - Other major active PPP projects in pipeline: Odisha, Assam, Maharashtra CT project, Himachal Pradesh, BMC project. - New tenders: Andhra Pradesh (Radiology), other states in evaluation but details not disclosed yet. - Expected additional topline from new tenders excluding Rajasthan: ~Rs. 140 crores in FY25, with maximum potential up to Rs. 200 crores. - Existing projects and new tenders combined aimed to sustain around 30% year-on-year growth in revenues. - Punjab tender fully implemented; revenue ramping up with new home collection services. - Order execution timelines: Maharashtra CT project expected completed by FY24-end; Rajasthan possibly delayed to next fiscal due to elections.