Mold-Tek Packaging Ltd

- The company borrowed only INR 40 crores during the financial year but invested INR 140 crores, indicating no significant new borrowing. - Working capital funds from the QIP proceeds were used to save interest costs, with unutilized working capital drawing power of about INR 100 crores and utilization around INR 69-70 crores. - For the current year, planned capex is around INR 70 crores, mainly for Pharma and balancing equipment for IML and new plants, which is about half of last year's INR 140 crores investment. - No specific mention of planned new fundraising via debt or equity was stated in the call. - The company is focused on utilizing existing funds and drawing power efficiently rather than raising new funds immediately.

- Current year capex is planned around INR 70 crores, primarily focused on Pharma, IML equipment, and Panipat thin wall plant. - Mahad plant investment scheduled at about INR 15 crores in the first year; land already acquired, to start production this year. - Further investments in Pharma packaging are dependent on market demand and client onboarding, with possible capacity expansion decisions around Q3. - Recent years saw significant capacity additions; further additions will be need-based. - Strategic focus on consolidating printing and die-cutting operations to reduce costs and wastage, with integration expected by July-August 2024. - Pharma segment expected to drive higher growth, which may lead to increased capital investment if demand accelerates.

- Mold-Tek expects 10%-12% volume growth in the Paint segment driven by ABG addition (8%-10%) and new IML clients. - Food & FMCG thin wall volumes targeted for 20% growth, supported by Panipat facility ramp-up from July-August. - Qpack segment anticipated to grow 30%-40% in volumes, continuing strong momentum. - Pharma segment, recently started commercial production, aims for INR20 crores turnover this year with a potential to double next year. - Overall, volume growth guidance for FY25 remains double-digit, around 12%-14%. - EBITDA margin expected to improve above 40% due to better capacity utilization and product mix shift towards higher-margin segments. - Capacity additions planned cautiously; Mahad plant to start by October-November with INR15 crores investment, and potential further investments (~INR70 crores) depending on Pharma demand. - Working capital utilization remains low, indicating capacity to support growth without capital strain.

- Mold-Tek Packaging expects double-digit volume growth of around 10-12% in the Paint segment for FY25, driven by new client additions like ABG and gains in IML segment. - Pharma packaging is in a high-growth and high-value segment; commercial production began recently with strong demand and anticipated capacity utilization of 70-80% by Q3 FY25. - Full-year Pharma revenue target for FY25 is around INR 20 crores, with potential to double next year due to growing client base and DMF standard adoption. - EBITDA margin is expected to improve above 40% in FY25, up from 37.7% in FY24, driven by better product mix (Qpacks, Food & FMCG, Pharma) and higher capacity utilization. - Medium-term volume growth expected between 4.8% to 15%+, supported strongly by ABG addition contributing ~7-10%. - Pharma packaging growth could accelerate over the next few years as more clients adopt stringent packaging standards, potentially driving earnings and profitability significantly upward.

- The company has received significant inquiries for pharma packaging, with 3-4 potential clients visiting and evaluating. - Expected that by Q3 FY25, pharma capacity utilization could reach 70%-80%. - Targeted pharma turnover for the current year is around INR 20 crores, potentially doubling next year as client supplies smoothen and new clients are added. - For Aditya Birla Group (ABG), sales volumes expected to reach 3,000 to 4,000 tons in the current financial year, up from minimal volume last year. - Capex and capacity expansions are based on demand; a decision on pharma capacity expansion is expected around Q3. - New plants at Panipat and Cheyyar started commercial production recently; Mahad plant expected by Oct-Nov 2024 to add production capacities. Overall, order books across pharma and ABG segments show strong growth potential with ongoing capacity additions to meet demand.