Kuantum Papers Ltd

- Kuantum Papers Limited plans to fund its ongoing and upcoming capacity expansion through a mix of bank debt and internal accruals. - The company has already applied for a bank loan of INR 535 crores. - The balance INR 200 crores of the INR 735 crores revised CAPEX cost will be funded from internal accruals. - No mention was made regarding any equity fundraising in the current or future plans disclosed in the call.

- **Revised Capex Project:** Rs. 735 crores approved, up from initial Rs. 285 crores. - **Purpose:** Upgradation and modification of existing paper machines focusing on environmental sustainability. - **Capacity Increase:** Aims for a 50% boost in production capacity from 450 tons per day to 675 tons per day. - **Upgrades:** - PM1 rebuilt (new headbox, wire parts, press part, pope reel, added dryers), increasing production from 25 to 40 tons. - TG4 turbine upgraded from 10 MW to 13.5 MW for better steam efficiency and lower costs. - Procurement of Bellmer shoe press for PM4. - DBS equipment ordered for pulp mill to improve production and pulp yield with lower steam use. - **Sapling Production:** Plan to produce 20 million clonal saplings by FY 2025. - **Timeline:** Majority of production capacity increase to complete by March 2025; remaining projects up to March 2026. - **Funding:** Combination of bank debt (approx. Rs. 535 crores) and internal accruals (approx. Rs. 200 crores).

- Kuantum Papers is undertaking a major capacity expansion to increase production by about 50% from 450 tons/day to 675 tons/day, targeted mostly by March 2025, with full completion by March 2026. - Specialty paper production expected to grow from 20% to 30% of total capacity, reaching about 300-350 tons/day within three years. - Revenue contribution from specialty paper anticipated to rise from 20% to 30%. - The company expects stable to improving realizations, supported by specialty papers which have 5-8% higher pricing and Rs. 4,000-5,000 per ton better margins. - Volumes to see marginal growth in FY25 due to current near 90% capacity utilization, with significant growth (approx. 60%) materializing in FY26 and the remaining 40% in FY27. - Enhanced operational efficiencies and cost management expected to improve EBITDA margins and profitability going forward.

- Kuantum Papers targets better EBITDA margins in FY 2025-26 due to improved operational efficiencies and capacity expansion. - A 50% production capacity increase is expected by March 2025, with full effects visible in FY 2025-26 and FY 2026-27. - Specialty paper production aims to grow from 20% to 30% of total capacity, increasing volumes from ~200 tons/day to 300-350 tons/day in 3 years, supporting higher revenue and margins. - EBITDA per ton has stabilized around Rs. 19,000-20,000 with expectations to improve through cost efficiencies and scale economies. - Current capacity utilization is above 90%, indicating scope for volume growth primarily with new capacity addition. - Profitability is projected to improve modestly in FY 25, with substantial volume and profit growth expected in FY 26 and FY 27 as new capacity comes online.

- The new education policy (NEP) has not been fully implemented yet; only up to standard three, with standards four and above pending, so no significant uplift in orders from NEP currently. - Ongoing demand exists due to market conditions and the company continues to collect orders in advance to keep machines running. - There are clear opportunities arising from the single-use plastic ban, with new product profiles being developed to meet this demand. - Specialty paper capacity upgrades (PM1 & PM2) will support the fulfillment of these orders over the next year. - No specific numeric quantification of the current order book is provided in the transcript, but management indicates healthy ongoing order flows aligned with capacity expansions.