Krsnaa Diagnostics Ltd

- Krsnaa Diagnostics aims to remain largely debt-free, relying primarily on internal accruals and vendor credit for funding. - Debt may be considered if it proves to be a more efficient financing option for specific projects. - Discussions are underway to adopt an asset-light pay-per-use model for equipment, reducing upfront capex needs. - For upcoming capex, including potential Rajasthan tender-related investments, a combination of internal funds, vendor credit, and possible debt will be utilized. - No explicit mention of raising funds through equity is noted in the provided transcript. - The company emphasizes minimizing debt and maintaining a strong balance sheet while pursuing growth opportunities.

- Planned capex for FY '25 (2024-25) is INR150-200 crores, excluding Rajasthan tender. - Rajasthan tender capex, if won, is an additional INR200-250 crores, potentially raising total capex to INR450-500 crores over approximately one year. - Capex mainly towards installing large, capex-heavy equipment such as analyzers and immunoassay machines. - Exploring asset-light strategies including pay-per-use or lease models for equipment to reduce outright purchases. - Capex funding through a mix of internal accruals, vendor financing, and possible debt if efficient, though company aims to remain largely debt-free. - New projects like Maharashtra MRI/CT and other state tenders will require incremental capex within the stated range. - Focus remains on selective tender participation aligned with financial metrics to optimize return on capital employed (ROCE).

- Krsnaa Diagnostics expects a revenue growth CAGR of around 30% for FY '25, continuing the current growth trajectory. - Expansion into more states and large projects such as Assam, Odisha, Rajasthan, and Maharashtra underpin this growth. - New projects and tenders will add to gross block and incremental revenues as centers get implemented and mature. - The company is becoming selective in tender participation, focusing on those aligned with financial metrics. - B2C vertical is in early stages but expected to grow as brand acceptance and package sales increase. - Rajasthan tender's revenue meaningful contribution expected in the second half or Q4 of FY '25 after court decision and lab installations. - Increasing volume is a key growth driver, particularly given the PPP model which offers significant patient volumes. - The test mix is expected to remain around 60-65% radiology and 35-40% pathology, with a target to approach a 50-50 mix.

- Krsnaa Diagnostics anticipates sustained revenue growth at a CAGR of around 30% for FY '25, driven by ongoing and new project ramp-ups. - EBITDA margins are expected to stabilize around 25%, given an increasing pathology mix which has slightly lower margins but offset by operational efficiencies. - The company aims to maintain steady margins rather than pursuing aggressive improvement, adopting a conservative approach due to higher consumption costs in pathology. - Asset maturity periods range from 9 months to 1.5 years, contributing to gradual improvement in returns on capital employed (ROCE), with mature assets delivering approximately 30% ROCE. - Net profits and EPS are expected to grow in line with revenue and margin stability, bolstered by a mix of internal accruals, vendor credit, and possible asset-light models reducing costs. - The Rajasthan tender, if cleared, will add significantly to top-line and asset base, with meaningful revenues projected from H2 FY '25 onward.

- Krsnaa Diagnostics has won multiple PPP tenders from various states, including Assam, Odisha, Maharashtra, Rajasthan, and others. - The Rajasthan pathology project is pending court approval with a judgment expected by end of February 2024; meaningful revenue expected only from H2 FY25. - Maharashtra has completed installation of 9 out of 30 CT scan centers in phase 1, with full phase 1 expected within 2-3 quarters; additional new tender just signed. - Assam and Odisha labs are being operationalized with all labs to be functional by Q4 FY24. - New gross block additions of INR 150-200 crores expected over next 1 to 1.5 years with upcoming projects. - Multiple states are exploring more PPP tenders due to positive reception of previous implementations, offering a growing pipeline. - Company is selective about tender participation ensuring alignment with financial metrics.