Ruchira Papers

- The company is undertaking a capex of approximately Rs. 70 Crores for modernization and adding the new product of cup stock paper. - This capex will be funded 50% through debt and 50% through cash accruals of FY 2019-20. - There is no mention of any new equity fundraising during this period. - The management discussed the capex funding during the call but did not indicate any additional fundraises beyond this. - No updates or plans were shared regarding further fundraising through debt or equity beyond this capex.

- Ruchira Papers is undertaking a modernization capex of around Rs. 70 Crores, to be completed by Q4 FY2020, with benefits starting from Q1 FY2021. - This capex involves modification of Paper Machine No. 01 in the Kraft Paper unit, enabling manufacturing of cup stock paper along with Kraft Paper, adding flexibility. - The modernization includes upgrading the Writing & Printing Paper unit's press section for improved paper quality and replacing the old 5.6 MW turbine with a more efficient 6.1 MW turbine. - Investment of approx. Rs. 10-12 Crores is planned to improve effluent treatment plants and chemical recovery with increased firing capacity. - The funding for the Rs. 70 Crores capex is proposed as 50% cash accruals and 50% debt. - The company plans a future Greenfield project in Punjab, currently delayed due to land registration issues, with land acquisition costs of Rs. 26 Crores incurred; activity to start post clearance within six months.

- The company expects domestic paper demand to grow at a CAGR of around 6.7%, with per capita consumption to increase from 13 kg to 17 kg by FY25. - Writing & Printing Paper (WPP) and Kraft Paper capacities are being optimized, with introduction of a new cup stock paper line expected to add flexibility and better margins. - Cup stock paper demand is growing at ~12% annually with a market size of 0.8 million tonnes. - Company expects marginal volume growth from existing capacity, with production guidance for FY20 at 143,000 MT (Kraft 88,000 MT; WPP 55,000 MT). - New product lines and modernization capex (~Rs 70 Crore to complete by FY20-end) will likely improve margins from Q1 FY21 onward. - Long-term outlook is cautiously optimistic; management notes uncertainty but expects industry pricing corrections and volume growth in Q3 FY20 and beyond. - Greenfield project is delayed due to land issues; current focus is on optimizing existing assets.

- The company expects EBITDA margins in FY20 to be around 16% (±25 bps) with improvements from Q1 FY21 due to modernization and new product lines. - The Rs. 70 Crore capex for modernization (to be completed by Q4 FY20) will enable manufacturing of cup stock paper, improve paper quality, increase turbine capacity from 5.6 MW to 6.1 MW, and enhance effluent treatment. - Cup stock paper is expected to yield better margins of 15%-17% EBITDA, higher than Kraft paper whose margins have been under pressure. - Demand for cup stock paper is growing at 12%, with a market size of 0.8 million tonnes, providing growth potential. - The outlook for writing & printing paper (WPP) and cup stock paper is cautiously optimistic for 2-3 years, albeit short-term challenges persist due to raw material cost pressures and softness in industrial demand affecting Kraft paper. - Profitability may be challenged in Q2 and Q3 FY20 but is expected to improve from Q3 onward as prices and raw material costs stabilize.

The transcript does not explicitly mention any specific details about the current or expected order book or pending orders for Ruchira Papers Limited. However, some related insights include: - Demand for Kraft paper has reduced due to slowdown in various industrial sectors such as FMCG, consumer durables, and automobile ancillaries. - The company is transitioning to new products like cup stock paper to mitigate Kraft paper's demand risks. - Cup stock paper demand is estimated to be growing at about 12% with a market size of 0.8 million tonnes. - The management plans to provide detailed discussions and clarifications in a meeting planned for the third week of September 2019. - Overall, indications suggest cautious optimism with the company monitoring industry conditions before proceeding with large projects. No concrete orderbook or pending order value or quantity figures were disclosed in this transcript.