Any current/future new fundraising through debt or equity?

The company is investing in new facilities with an expected investment of Rs. 25 Crores to Rs. 30 Crores. They are expecting an infusion of funds from warrants issued in the last year of an equal amount, which will reduce the requirement for additional funding. Working capital for the new business is negative, and the old printing business does not require much working capital. If the company plans further expansion beyond the current stage, there may be additional capital requirements. At that time, the company will evaluate whether to raise more debt or not. Currently, the debt level is expe

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

Repro India Limited plans a capital investment of Rs. 25 to Rs. 30 Crores for new facilities in Delhi and Bengaluru. The investment is aimed at expanding capacity and enhancing market presence in these locations. They expect infusion of funds from warrants issued last year, which will partially fund this expansion. The print business will not require much additional working capital as it is not growing significantly. The company is considering maintaining or possibly raising debt depending on the growth and capital needs. Investment is linked with scaling up operations to capture lar

Future growth expectations in sales/revenue/volumes?

The company expects good growth in coming quarters, supported by positive trends in customer acquisition (Page 17). Focus is on acquiring more relevant content and expanding presence in more locations such as Delhi and Bengaluru to grow sales (Page 19). The online books market, currently around 4% of the overall book market in India, is expected to reach at least 10% in the next two years, indicating strong growth potential in e-commerce sales (Page 15). Export business is picking up and broadening, with multiple countries in Africa becoming markets, with exports reaching Rs.48 Crores for the

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

The focus for the next 12 to 18 months is on growing the business and capturing large market share, prioritizing topline growth over immediate bottomline profits. With significant market share achieved, it would become easier to generate a healthy bottomline due to scale benefits. Publishing services business margins are expected to be maintained or improve slightly due to long-term contracts with publishers. Growth in Books On Demand segment will contribute to topline but may not add substantially to the bottomline in the near term; margins in this segment are expected to improve over t

Current/ Expected Orderbook/ Pending Orders?

Current order book stands at Rs. 73 Crores (Page 17). This includes both export and domestic orders (Page 17). Breakdown: Rs. 61 Crores from domestic orders and Rs. 13 Crores from exports (Page 17). The trend in order inflow appears positive, indicating pickup in coming quarters (Page 17).

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Repro India LtdQ3 FY18Printing & Publication

Repro India Ltd Q3 FY18 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

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→The company expects good growth in coming quarters, supported by positive trends in customer acquisition (Page 17).
→Focus is on acquiring more relevant content and expanding presence in more locations such as Delhi and Bengaluru to grow sales (Page 19).
→The online books market, currently around 4% of the overall book market in India, is expected to reach at least 10% in the next two years, indicating strong growth potential in e-commerce sales (Page 15).
→Export business is picking up and broadening, with multiple countries in Africa becoming markets, with exports reaching Rs.48 Crores for the half-year (Page 16).
→The Books on Demand business is growing rapidly, contributing significantly to topline growth but adding less to bottom line currently (Page 9).
→The company aims to grow market share first, prioritizing topline growth over margins in the near term (Page 9, 19).

Margin guidance

Category 3

→The focus for the next 12 to 18 months is on growing the business and capturing large market share, prioritizing topline growth over immediate bottomline profits.
→With significant market share achieved, it would become easier to generate a healthy bottomline due to scale benefits.
→Publishing services business margins are expected to be maintained or improve slightly due to long-term contracts with publishers.
→Growth in Books On Demand segment will contribute to topline but may not add substantially to the bottomline in the near term; margins in this segment are expected to improve over the longer term (by FY2021-22).
→Operating cash flow was Rs. 16 Crores for the recent quarter, with EBITDA of Rs. 21 Crores showing positive operational earnings.
→Operating expenses are expected to scale with exports and business growth but managed to maintain break-even levels currently.
→Debt levels are expected to be maintained or reduced, supporting healthy financials going forward.

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Fundraise plans

Yes

→The company is investing in new facilities with an expected investment of Rs. 25 Crores to Rs. 30 Crores.
→They are expecting an infusion of funds from warrants issued in the last year of an equal amount, which will reduce the requirement for additional funding.
→Working capital for the new business is negative, and the old printing business does not require much working capital.
→If the company plans further expansion beyond the current stage, there may be additional capital requirements.
→At that time, the company will evaluate whether to raise more debt or not.
→Currently, the debt level is expected to be maintained and not go down significantly as of now.
→Warrants issued will convert after 12 to 18 months, which will help fund expansion.

Order book

Yes

→Current order book stands at Rs. 73 Crores (Page 17).
→This includes both export and domestic orders (Page 17).
→Breakdown: Rs. 61 Crores from domestic orders and Rs. 13 Crores from exports (Page 17).
→The trend in order inflow appears positive, indicating pickup in coming quarters (Page 17).

Capex plans

Yes

→Repro India Limited plans a capital investment of Rs. 25 to Rs. 30 Crores for new facilities in Delhi and Bengaluru.
→The investment is aimed at expanding capacity and enhancing market presence in these locations.
→They expect infusion of funds from warrants issued last year, which will partially fund this expansion.
→The print business will not require much additional working capital as it is not growing significantly.
→The company is considering maintaining or possibly raising debt depending on the growth and capital needs.
→Investment is linked with scaling up operations to capture larger market share and support the growth of their Books On Demand segment.

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

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1Repro India Ltd

Rev 3Mar 3

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