Any current/future new fundraising through debt or equity?

Currently, Repro India Limited is managing its operations and investments through internal accruals. The planned investment for expanding the Rapples business is around Rs. 15 crores, which will be funded internally. There is no immediate indication of raising new debt or equity for these expansions. Regarding setting up new facilities in Chennai and Delhi, CAPEX will be required but it is described as marginal and not very large. The current debt level is Rs. 197 crores; no explicit plans have been stated about raising additional debt. The company will assess the situation at the time if addi

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

Repro India is undertaking CAPEX to expand capacity from the current 6,000 to 12,000 books, with planned investments in Chennai, Delhi, and some in Mumbai. (Page 17) Chennai facility already has premises and a plant, making it easier and faster to start; machine delivery and installation takes around 2 months, requiring 15-20 employees initially. (Page 21) One facility is expected to be operational this financial year, possibly both Chennai and Delhi. (Page 13) Further capacity expansions beyond 12,000 books per day are planned for the future. (Page 11) No current plans for further investment

Future growth expectations in sales/revenue/volumes?

Repro India aims to rapidly increase the number of listed titles, targeting to surpass 10 million titles before 2020, possibly even sooner. They plan to expand printing capacity from the current 6,000 books per day to 12,000, with further expansions expected post achieving full utilization. Currently selling around 3,000 to 4,000 books per day, equating to approximately Rs. 3 crores revenue per month, with expectations to grow this volume. Expected improvement in operational efficiency and conversion rates (20-30%) through establishing new regional centers in Chennai and Delhi. Strategic focus

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

The company does not provide specific future earnings or EBITDA guidance, including for Books On Demand (BOD) business. EBITDA for the BOD segment was roughly break-even in the recent quarter. The BOD business is expected to grow by acquiring more titles and increasing sales volume; however, profitability depends on reaching certain sales scale. Revenue from BOD currently is about Rs. 3 crores per month, with plans to expand capacity from 6,000 to 12,000 books and beyond, hinting at longer-term growth potential. Capacity expansions are planned in Chennai, Delhi, and Mumbai to improve o

Current/ Expected Orderbook/ Pending Orders?

Domestic market has an opening order book of around Rs. 25 crores, which is expected to be mostly executable within the quarter (7 to 10 days lag for revenue recognition). Export order book opening is around Rs. 16 crores; revenue recognition might spill over into the next quarter as goods need to reach customers. The export order book execution timeline is longer compared to domestic, due to delivery and transit times. Repro India is working to maintain a good mix of domestic and export orders to manage revenue flows effectively.

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Repro India LtdQ2 FY17Printing & Publication

Repro India Ltd Q2 FY17 Earnings Call Analysis

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

Price: ₹372Market Cap: ₹523 CrSector: Printing & Publication

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Repro India aims to rapidly increase the number of listed titles, targeting to surpass 10 million titles before 2020, possibly even sooner.
→They plan to expand printing capacity from the current 6,000 books per day to 12,000, with further expansions expected post achieving full utilization.
→Currently selling around 3,000 to 4,000 books per day, equating to approximately Rs. 3 crores revenue per month, with expectations to grow this volume.
→Expected improvement in operational efficiency and conversion rates (20-30%) through establishing new regional centers in Chennai and Delhi.
→Strategic focus on acquiring more titles, especially mid and back titles which yield higher contribution margins, to grow sales and market share.
→Export business is anticipated to revive alongside steady domestic growth in the coming quarters.
→No explicit EBITDA guidance given, indicating a focus on top-line growth and market penetration first before profitability optimization.

Margin guidance

Category 3

→The company does not provide specific future earnings or EBITDA guidance, including for Books On Demand (BOD) business.
→EBITDA for the BOD segment was roughly break-even in the recent quarter.
→The BOD business is expected to grow by acquiring more titles and increasing sales volume; however, profitability depends on reaching certain sales scale.
→Revenue from BOD currently is about Rs. 3 crores per month, with plans to expand capacity from 6,000 to 12,000 books and beyond, hinting at longer-term growth potential.
→Capacity expansions are planned in Chennai, Delhi, and Mumbai to improve operational efficiency and margins.
→Export and print business revenues have faced headwinds but are expected to stabilize or revive gradually.
→The company focuses on reducing costs, including employee costs, to improve margins.
→Overall, growth is anticipated through scale, better terms with publishers, and expanded product listings, though timeline and specific profitability improvements are not disclosed.

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Fundraise plans

→Currently, Repro India Limited is managing its operations and investments through internal accruals.
→The planned investment for expanding the Rapples business is around Rs. 15 crores, which will be funded internally.
→There is no immediate indication of raising new debt or equity for these expansions.
→Regarding setting up new facilities in Chennai and Delhi, CAPEX will be required but it is described as marginal and not very large.
→The current debt level is Rs. 197 crores; no explicit plans have been stated about raising additional debt.
→The company will assess the situation at the time if additional funds are needed, implying no firm commitment yet to raise fresh funds via debt or equity.

Order book

Yes

→Domestic market has an opening order book of around Rs. 25 crores, which is expected to be mostly executable within the quarter (7 to 10 days lag for revenue recognition).
→Export order book opening is around Rs. 16 crores; revenue recognition might spill over into the next quarter as goods need to reach customers.
→The export order book execution timeline is longer compared to domestic, due to delivery and transit times.
→Repro India is working to maintain a good mix of domestic and export orders to manage revenue flows effectively.

Capex plans

Yes

→Repro India is undertaking CAPEX to expand capacity from the current 6,000 to 12,000 books, with planned investments in Chennai, Delhi, and some in Mumbai. (Page 17)
→Chennai facility already has premises and a plant, making it easier and faster to start; machine delivery and installation takes around 2 months, requiring 15-20 employees initially. (Page 21)
→One facility is expected to be operational this financial year, possibly both Chennai and Delhi. (Page 13)
→Further capacity expansions beyond 12,000 books per day are planned for the future. (Page 11)
→No current plans for further investment in the Rapples digital business; existing IT investments are leveraged for Books On Demand. (Page 22)
→Current expansion managed internally through accruals, amounting to about Rs. 15 crores; future funding decisions depend on circumstances. (Page 21)

How does Repro India Ltd rank vs peers in Printing & Publication?

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1Repro India Ltd

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