Paramount Communications Ltd

- Paramount Communications is currently a debt-free company. - Fundraising options under consideration include Qualified Institutional Placement (QIP) and debt. - The company is exploring the ideal mix of equity and debt for funding. - Any equity infusion would dilute promoter holding, so the company will carefully balance this. - For ongoing CAPEX, the company has spent Rs. 43 crores in the current financial year and plans to spend around Rs. 70 crores. - Future CAPEX will largely be funded through a mix of equity and debt to support expansion, including a new greenfield manufacturing plant. - The company raised approximately Rs. 274 crores in fresh equity over the past two years primarily for debt repayment, working capital, and CAPEX. - New large-scale CAPEX of roughly Rs. 250 crores (excluding land) is planned over 1.5-2 years, with funding options still open.

- Paramount Communications has been continuously investing in CAPEX every quarter to support growth. - For FY25, the company has spent Rs. 43 crores on CAPEX so far, targeting around Rs. 70 crores for the full year. - Most future CAPEX will be focused on a new greenfield manufacturing plant on 31 acres of land allotted in Narmadapuram, Madhya Pradesh. - The total project cost for the new plant, excluding land, is roughly Rs. 250 crores, expected to be spent over 1.5-2 years. - The new plant is expected to start commercial production by December 2026 (FY27), helping double the company’s revenues. - Capacity from the new plant should be fully available by FY28. - Funding options under consideration include a mix of equity and debt; QIP is one of the options on the table. - The company remains debt-free as of now and evaluating the ideal capital structure for raising funds.

- Paramount aims to cross Rs. 5,000 crores in revenues by FY 2030, targeting above 30% CAGR over the next five years. - For FY27, the new plant is expected to generate Rs. 500-600 crores in revenue, contributing significantly to growth. - Existing two plants have a revenue capacity limit of around Rs. 2,000 crores; new plant will help roughly double this capacity by FY28. - Domestic cable sales, especially power cables, show strong growth (e.g., 63% growth in 9 months FY25). - Export sales, mainly to the US, have grown rapidly (58% growth in 9 months FY25 export sales), aiming for 40% of revenues from exports going forward. - Continuous CAPEX with Rs. 70 crores planned for FY25 and ongoing machinery additions support volume and revenue growth at near 100% capacity utilization. - Focus on both vertical (volume) and horizontal (product range) growth in domestic and export markets.

- Paramount Communications targets above 30% CAGR in total revenues over the next 5 years, aiming to cross Rs. 5,000 crores by FY 2030. - The company expects EBITDA margin improvement by 100 basis points, indicating higher operating profitability. - They aim for exports, mainly to the US, to constitute around 40% of revenues, diversifying growth sources. - New greenfield manufacturing plant (30 acres in Madhya Pradesh) expected to start contributing revenues from FY27, doubling production and revenue capacity by FY28. - Continuous CAPEX (Rs. ~70 crores planned in FY25) supports capacity expansion and sustained growth. - Profit after tax demonstrated 21.7% growth in 9 months FY25; PAT margin slightly affected due to tax changes but expected to improve with scale. - Operating cash flow expected to turn positive imminently due to strong revenue growth and improved margins.

- As of December 31, 2024, the pending order book stands at Rs. 620 crores. - Domestic cable orders constitute Rs. 386 crores of this order book. - Export orders make up Rs. 234 crores. - The company maintains a policy not to hold firm price order books exceeding 3 to 3.5 months of capacity. - Orders with delivery beyond 3-4 months are mostly on variable price basis to mitigate metal price fluctuation risks.