Any current/future capex/capital investment/strategic investment?

Yash Pakka is undertaking a major capex project worth around ₹240-250 Crores. The project aims to more than double turnover and triple profitability by 2025. Key investments include: - Tripling capacity in the moulded products segment. - Modifying paper machines to increase capacity for paper bags by 40-100%. - Enhancing electricity generation from biomass from 8.5 MW to 13.5 MW, ensuring self-sufficiency. - Environmental upgrades focused on water, energy, and air conservation. Timeline for the project is 12-15 months, targeting full operation by April 2022. Funding plan involves a mix

Any current/future new fundraising through debt or equity?

Yash Pakka Limited is planning a large expansion project costing around ₹240-250 Crores. Funding will primarily come from debt (~₹180 Crores) and internal accruals. There is openness to some equity infusion if investors show interest, but management prefers minimal dilution currently. Management feels debt is the cheapest capital compared to equity. Promoter shares are currently pledged as collateral for loans; efforts are ongoing to get pledges released. Discussions with banks are active to structure debt favorably and ensure smooth funding for the expansion. No immediate fresh equity issue f

Future growth expectations in sales/revenue/volumes?

The company aims to more than double its turnover by 2025, targeting Rs. 13.6 billion in sales revenue. Profitability is expected to triple compared to the pre-COVID baseline (FY2019-20). A major capex project of around Rs. 240-250 Crores is underway to expand capacity, especially in moulded products (aiming to triple capacity). Paper bag production capacity will increase by about 40%, alongside a focus on higher strength products. Production capacity for moulded products is currently around 14 tonnes/month at 60% efficiency, with plans to significantly improve. The company expects s

Future growth expectations in earnings/operating earnings/profits/EPS?

Yash Pakka aims to more than double its turnover by 2025, targeting Rs. 13.6 billion in revenue. The company expects to at least triple its profitability compared to pre-COVID levels (excluding the pandemic-hit year 2020-21). Expansion projects include increasing moulded products capacity by over three times and boosting paper bag capacity by about 40%, enhancing product mix and strength. An aggressive capex of approximately Rs. 240-250 Crores is underway, expected to be completed within 12-15 months, stabilizing by FY 2022-23. The company projects healthy internal accruals supporting growth w

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Pakka LtdQ4 FY22Paper, Forest & Jute Products

Pakka Ltd Q4 FY22 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹80.7P/E: 64.3Market Cap: ₹426 CrSector: Paper, Forest & Jute Products

Management growth scorecard

Revenue

Category 1

Margin

Category 1

Fundraise

Yes

Order

N/A

Capex

Yes

4 of 4 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 1

→The company aims to more than double its turnover by 2025, targeting Rs. 13.6 billion in sales revenue.
→Profitability is expected to triple compared to the pre-COVID baseline (FY2019-20).
→A major capex project of around Rs. 240-250 Crores is underway to expand capacity, especially in moulded products (aiming to triple capacity).
→Paper bag production capacity will increase by about 40%, alongside a focus on higher strength products.
→Production capacity for moulded products is currently around 14 tonnes/month at 60% efficiency, with plans to significantly improve.
→The company expects steady sales growth with the reopening of QSRs and better market conditions post-pandemic.
→The Global Compostable Alliance subsidiary aims to foster innovation, technology alignment, and deeper collaboration, which may support future growth.
→Expansion of energy generation (from 8.5 MW to 13.5 MW) to maintain self-sufficiency and support increased production.

Margin guidance

Category 1

→Yash Pakka aims to more than double its turnover by 2025, targeting Rs. 13.6 billion in revenue.
→The company expects to at least triple its profitability compared to pre-COVID levels (excluding the pandemic-hit year 2020-21).
→Expansion projects include increasing moulded products capacity by over three times and boosting paper bag capacity by about 40%, enhancing product mix and strength.
→An aggressive capex of approximately Rs. 240-250 Crores is underway, expected to be completed within 12-15 months, stabilizing by FY 2022-23.
→The company projects healthy internal accruals supporting growth with a mix of debt and possible minor equity infusion to fund expansion.
→Energy self-sufficiency will improve with planned increase in biomass power generation from 8.5 to 13.5 MW.
→Innovation and global collaboration via the Global Compostable Alliance are expected to drive research, technology enhancement, and market opportunities, supporting future earnings growth.

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Fundraise plans

Yes

→Yash Pakka Limited is planning a large expansion project costing around ₹240-250 Crores.
→Funding will primarily come from debt (~₹180 Crores) and internal accruals.
→There is openness to some equity infusion if investors show interest, but management prefers minimal dilution currently.
→Management feels debt is the cheapest capital compared to equity.
→Promoter shares are currently pledged as collateral for loans; efforts are ongoing to get pledges released.
→Discussions with banks are active to structure debt favorably and ensure smooth funding for the expansion.
→No immediate fresh equity issue finalized, clarity expected in 1-2 months, with possible minor dilution.
→Foreign loan options were considered but hedging costs and currency risks make domestic loans preferable at this stage.

Order book

The transcript does not explicitly mention current or expected order book or pending orders for Yash Pakka Limited. However, relevant insights can be inferred: - The company has aggressive expansion plans with a capex project of approximately Rs. 240-250 Crores aimed at tripling capacity, indicating strong expected future demand. - They are expanding moulded product capacity by 3-4 times, suggesting increasing order volumes. - Focus remains on QSR (Quick Service Restaurant) clients, which constitute over 80% of sales, indicating ongoing bulk demand. - Management noted challenges due to COVID-19 impact on QSR but expects demand recovery and growth with restaurant re-openings. - The company is in the process of securing funding (debt and equity) to support expansion, reflecting confidence in future order inflows. - No direct figures or data on current order book or pending orders were disclosed in the call.

Capex plans

Yes

→Yash Pakka is undertaking a major capex project worth around ₹240-250 Crores.
→The project aims to more than double turnover and triple profitability by 2025.
→Key investments include:
→ - Tripling capacity in the moulded products segment.
→ - Modifying paper machines to increase capacity for paper bags by 40-100%.
→ - Enhancing electricity generation from biomass from 8.5 MW to 13.5 MW, ensuring self-sufficiency.
→ - Environmental upgrades focused on water, energy, and air conservation.
→Timeline for the project is 12-15 months, targeting full operation by April 2022.
→Funding plan involves a mix of debt (around ₹180 Crores), internal accruals, and possible limited equity infusion.
→A wholly-owned US subsidiary, Yash Pakka Incorporated, is being formed for global innovation and collaboration, including the Global Compostable Alliance as a self-sustaining platform to foster industry collaboration.

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