Mallcom (India) Ltd

- The company is not planning to raise long-term debt; only working capital borrowing is anticipated. - Current debt-equity ratio is around 0.25:1 and is expected to remain similar. - The company already has cash available on the balance sheet and is generating cash. - No significant changes in debt levels are expected going forward. - CAPEX of over INR 60 crore planned for FY25 will be funded through internal accruals, not through equity or additional long-term borrowing.

- In FY24, Mallcom invested INR 26-38 crores in capex, including setting up a new garment unit in Chandipur, West Bengal, and a greenfield Protech gloves and PPE project in Sanand, Gujarat. - The Sanand facility’s first phase is expected to be completed by July 2024, with a total planned investment of around INR 78 crores (38 crores spent + 40 crores more before full operation). - In FY25, the company plans additional capex of over INR 60 crores, including INR 20 crores for a new industrial safety shoe unit at Chandipur, with commercialization expected by Q4 FY25. - The capex is funded through internal accruals; no long-term borrowing planned except working capital loans. - These investments aim to replace aging assets, consolidate facilities, and support targeted growth toward INR 1000 crore revenue by FY28.

- The company expects a 15% growth in sales for FY25. - Margins are expected to remain largely stable with a possible 50 basis point increase. - Targets a revenue of INR 1000 crore by FY28, implying a CAGR of approximately 25% to 30% over the next few years. - Growth will be driven by multiple product segments, with higher percentage growth expected in less represented segments like head protection, body protection, and synthetic gloves. - Domestic branded business is expected to grow faster than the non-branded/export business. - Export markets, especially North America, Europe, and South America, are showing positive growth signs and will contribute to future expansion. - Infrastructure investments (CAPEX of over INR 60 crore planned for FY25) are aimed at supporting this growth trajectory, with back-ended higher growth expected towards FY26-27.

- The company expects a **15% growth in revenue for FY25**, with margins remaining largely stable; a possible 50 basis point margin improvement is anticipated. - The target is to achieve **INR 1000 crore revenue by FY28**, requiring approximately a **25% to 30% CAGR** over the next 3-4 years. - Margins are expected to remain in the current range (~14%) with minimal changes despite growth efforts. - Growth will be driven by multiple product segments, with higher growth rates expected in segments where the company currently has less presence, such as head and body protection, and synthetic gloves. - Both branded (primarily India) and white-label (largely exports) businesses are expected to grow, with branded sales projected to grow faster, contingent on favorable geopolitical conditions. - Operating cash flows have been lower recently due to increased working capital; as growth normalizes, cash flows are expected to improve.

- Q1 FY25 is looking much brighter compared to last year and last quarter. - The company has inventories and raw materials in stock ready to convert into sales. - Pending orders from last year due to supply chain issues are being fulfilled now. - Exports show a bullish trend with Europe recovering, North America being responsive, and South America showing decent demand. - Overall, a better order book is expected in Q1 FY25 versus previous periods.