Parag Milk Foods Ltd

- FY19 capex was about Rs. 80 Crores, including Rs. 30 Crores IPO money fully invested, Rs. 22-23 Crores on Danone plant and expansions, and the rest on maintenance/compliance. - FY20 and FY21 capex expected at 2% to 2.5% of revenues (~Rs. 60-65 Crores per year). - Investments include: - Expanding milk procurement network, especially in northern region for Sonipat plant. - Strengthening distribution infrastructure with 19 depots, adding more depots shortly. - Investments in cold chain - better quality vehicles for third-party transporters. - Expansion of farm (Bhagyalakshmi Dairy Farm) to increase milk production for brands like Pride of Cows. - Brand building with increased A&P spends expected at 3-3.5% of sales. - TOC (Theory of Constraints) model rollout for improved retail presence and product range, e.g., completed in Mumbai, planned for Delhi. - Cost-saving strategic investments in power generation (captive/group captive) and packaging to reduce expenses.

- Revenue Growth: The company reported a 23% Y-o-Y revenue growth for FY19 and aims to grow further, targeting annual revenues around Rs. 2700-3000 Crores as per Vision 2020. - Milk Procurement & Processing: Milk procurement averaged 14-15 lakh liters per day in FY19 with volume growth close to 25% annually, and management expects to increase milk procurement by roughly 6-7% over the current year. - Danone Plant Contribution: Expected to contribute Rs. 90-100 Crores revenue in FY20 with a monthly run rate of Rs. 7-8 Crores by year-end. - Health & Nutrition Segment: Targeted to expand the portfolio to 6-7% of overall revenues in two years, with brands like Avvatar expected to reach Rs. 4-5 Crores monthly run rate in FY20. - Distribution Expansion: Retail presence increased from 2.5 lakh outlets in FY18 to 3.75 lakh outlets; distribution infrastructure and reach continue to expand Pan India. - SMP Business: Remains around 13-14% of business with focus on higher-value customized products. Overall, volume and revenue growth are expected to continue, supported by product expansion, increased procurement, and distribution reach.

- EBITDA margin expected to improve to 11-12% from current ~9.3%, driven by rationalization of costs and operational efficiencies. - Long-term EBITDA margin target around 10.5%-11% with ongoing investments stabilizing. - PAT margin improved to 5% in FY19, expected to maintain or improve with margin normalization and cost control. - Revenue growth driven by milk products, health & nutrition portfolio expansion (targeting 6-7% of portfolio in 2 years). - Danone plant (Sonipat) expected to contribute ~Rs. 100 Crores revenue in FY20, indicating geographical expansion. - Milk procurement expected to grow 6-7% in FY20, supporting volume growth. - Working capital improvements and supply chain efficiencies (Vector, TOC model) to enhance cash flow and profitability. - Net margins expected to remain well above 5% with normalized tax rate of 24%-25% in coming years. - Free cash flow generation improving with focus on operational discipline and reduced debt.

The provided transcript does not contain specific information regarding the current or expected order book or pending orders for Parag Milk Foods Limited. The focus of the discussion is primarily on procurement prices, milk price trends, production volumes, inventory management, financial performance, and strategic initiatives such as brand building and expansion. No explicit details about order book status or pending orders are mentioned on the referenced pages (pages 4 to 16) of the document.

- No specific mention of current or planned fundraising through debt or equity is provided in the transcript. - Debt levels have decreased from Rs. 2,637 million in March 2018 to Rs. 2,144 million in March 2019, with a debt-to-equity ratio improving from 0.37 to 0.26. - The company has invested Rs. 30 crore from IPO proceeds fully. - Capex for FY20 and FY21 is expected at Rs. 60-65 crore annually (~2-2.5% of revenues), focused on growth and maintenance, but not explicitly linked to new fundraising. - Emphasis is on improved working capital management and cash flows, with a free cash flow of Rs. 640 million as of March 31, 2019. - No direct indication of immediate plans for raising new equity or debt funding in the near term.