Naman Industries Proxima Limited Q2 FY25 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Management growth scorecard
Revenue
Category 3
Margin
Category 3
Fundraise
Yes
Order
N/A
Capex
Yes
2 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 3- Expected growth of around 15% to 20% year-on-year for the next couple of years.
- Current facility capacity supports revenue of approximately INR 175-180 crores.
- New facility planned in Wada, Maharashtra, targeting revenue capacity of INR 270-300 crores.
- Full shifting to the new facility expected in 1 to 1.5 years; both facilities may operate parallelly initially.
- Growth expected to more than double current revenue in 4 to 5 years due to new verticals and expanded operations, including B2C channels.
- For FY29, revenue is expected to surpass INR 325 crores, exceeding earlier projections.
- H2 revenue expected to improve over H1, aided by cessation of elections and better market conditions.
See what Naman Industries Proxima Limited management said on margin guidance — free account, 30 seconds.
Fundraise plans
Yes- Yes, the company plans additional fundraising through both debt and equity.
- They recently completed a preferential equity issue to raise working capital.
- For future capex, especially for the new facility in Wada, they are likely to raise additional debt of around INR 35 crores.
- Existing debt is expected to be repaid consistently, while new term loans may be availed for the new facility.
- The company expects a peak debt level of around INR 70-75 crores combining current and new debt.
- Management indicated that both debt and equity financing will be used as needed over the next 2 years, but there is no final decision yet on further equity dilution.
- Proceeds from IPO and preferential issue are partly used for land acquisition and working capital; new capex financing is planned via debt.
See what Naman Industries Proxima Limited management said on order book — free account, 30 seconds.
Capex plans
Yes- Naman In-Store is investing in a new manufacturing facility in Wada, Maharashtra.
- Total capex for the new facility is estimated to be around INR 50-60 crores.
- Land for the new facility has been partially paid for, with registration expected by November 2024.
- The new facility is expected to be operational in about 1 to 1.5 years.
- This move from leased to owned premises will provide rent savings, working capital benefits, and government subsidies.
- Additional debt of around INR 35 crores is planned to finance the new facility's capex.
- Current output capacity is about INR 175-180 crores, expected to increase to INR 270-300 crores after shifting to the new facility.
- The company plans to operate both existing and new facilities in parallel during the transition period.
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Margin guidance
Category 3- Expected revenue growth of 15-20% year-on-year for the next 2-3 years.
- Full impact of new Wada facility and new verticals (including B2C-focused lines) likely to more than double revenue in 4-5 years.
- March 2024 revenue approx. INR 145 crores; targeted INR 225 crores by FY27 and over INR 325 crores by FY29.
- Operating margins targeted at 8-8.5% PAT going forward, improving upon past margins (which varied between 5%-15%).
- PAT margin for H1 FY25 reported at 7.15%; goal is consistent PAT margin around 8% supported by cost efficiencies and incentives like subsidies at new facility.
- New production capacity to increase from INR 180 crores to approx. INR 270-300 crores post-shift to new premises.
- Earnings expected to grow sustainably with expansion into new business verticals and steady working capital management.
Order book
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What Naman Industries Proxima Limited's management said in earlier quarters
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