Mallcom (India) Ltd

- The company has not taken any long-term debt currently and only has working capital borrowings. - All current and planned CAPEX, including the SANAND expansion, is being funded through internal accruals. - There is no indication or plan mentioned for any new fundraising through debt or equity in the near future. - The company is maintaining a conservative approach toward capital expenditure and prefers internal accrual funding. - No mention of fresh equity issuance or significant long-term borrowings was made during the call.

- Ongoing greenfield project at SANAND-II, Gujarat, focused on Protech gloves and other products; Rs. 28 crores invested so far with approx. Rs. 32 crores more expected in next two quarters; targeted operational by Q1 FY 2025. - Phase-2 CAPEX at Ghatakpukur plant planned; expected to start in Q1 2025 and complete within FY 2025; CAPEX estimated between Rs. 15-20 crores for manufacturing safety shoe components (shoe uppers). - Expansion at SANAND Phase 1: additional 50% capacity for Protech gloves and 50% increase for helmets; Phase 2 CAPEX timeline not yet finalized, likely FY 2026. - Current CAPEX financed entirely through internal accruals; no long-term debt for expansion; only working capital borrowings present. - Capacity expansions driven by need for modern machinery, increased space, and to capture growth in Indian and international markets.

- The company targets Rs. 1,000 crores in revenue by FY 2028, maintaining a CAGR of approximately 15%. - FY 2024 growth is expected to be single-digit, recovering from supply chain and capacity expansion impacts. - Growth is projected to accelerate with double-digit growth, around 20%-30%, from FY 2025 onwards. - Capacity utilization currently at 70%-80%; existing capacity can support Rs. 600-700 crores revenue without further CAPEX. - Expansion projects, especially the SANAND Phase 1 and upcoming Phase 2, will increase capacity and support growth. - Domestic market (India) and emerging markets like North America, Middle East, and Asia expected to drive significant growth. - Focus on certified, quality products and expanding product categories (e.g., safety shoes, helmets) to capture market share. - Online sales expected to remain a small portion (2%-5%) of total sales.

- Revenue target: Rs. 1,000 crores by FY 2028, with expected 14%-15% EBITDA margins sustained long-term. - FY 2024 growth projected at high single-digit; FY 2025 expected to achieve double-digit growth (~20%-30%). - Capacity utilization currently at 70%-80% with potential revenue of Rs. 600-700 crores from existing capacity alone. - New product segments like safety shoes and helmets targeted to contribute significantly (~one-third of projected revenues). - Export markets showing mixed trends; North America and India expected to see improved growth, Europe subdued but stable. - Margins expected to remain stable despite temporary EBITDA margin dips in recent quarters due to supply chain and operational shifts. - Ongoing CAPEX mainly funded through internal accruals; limited long-term debt currently. - Supply chain improvements underway to recoup lost revenues and support growth acceleration.

- The company experienced some lost turnover of Rs. 10-12 crores in the garment segment due to supply chain issues and plant shifting. - The lost turnover is mainly related to garments and efforts are ongoing to recover some of this volume. - It is uncertain if 50%-60% of the lost revenue can be recovered shortly, as increasing production capacity takes time. - Order inflow is not an issue; the main challenge is ramping up production and supply of pending orders. - The company is fully operational now and aims to fulfill pending orders in the current quarter. - Management regularly updates customers about capacity expansions and product availability; while there are no formal commitments, there is verbal understanding about demand.