Rupa & Company Ltd

- There is no specific mention of any new fundraising through debt or equity in the current earnings call. - The company has focused on reducing its net debt from INR134 crores in March 2023 to INR62 crores as of September 2023. - Working capital has also been reduced from INR788 crores to INR743 crores, indicating efficient resource management and no immediate need for fresh funds. - Capex guidance for FY24 and FY25 remains steady at INR25-30 crores annually to support business growth, with no indication of additional fundraising. - Overall, the company seems focused on internal cash flow and operational efficiency rather than new fundraising initiatives at this stage.

- Annual capex for business support is around INR 25-30 crores, expected to continue in FY24 and FY25. - A new export unit has been commissioned recently with a capacity of 40,000 to 50,000 pieces per day. - The export unit is expected to generate INR 100 crores plus revenue at 80%-90% capacity utilization. - The company plans to invest in brand building, including marketing and economy brand improvements, with a new brand ambassador appointed. - Expansion of Exclusive Brand Outlets (EBOs) is planned, targeting around 10 new stores in the current year, with further 5-7 stores depending on market conditions. - The company has made senior management additions, including a Group Chief Digital and IT Officer, focusing on digital and online growth opportunities.

- Targeting 18% to 20% CAGR growth in sales/revenue year-on-year; volume growth is achievable and expected to be strong. - Revenue growth value will significantly depend on yarn/raw material prices; stable or firm yarn prices support value growth. - Sales volume growth: 15% in Q2, 10% in H1 FY24; premium segment growing fastest with 22%, mid-premium 20%, economy 9%. - Geographic expansion planned in Hindi Heartland with 27% growth in H1. - Modern Trade segment contributing (5% of H1 revenue) with expansion plans ongoing. - Plans for expansion of Exclusive Brand Outlets (EBOs) with 10 additional stores targeted this year. - Export unit commissioned to boost exports with expected increase from Q4 onwards. - Marketing investments and brand ambassador endorsements expected to support growth. - Overall, company confident of delivering volume growth and achieving revenue targets despite market challenges.

- **EBITDA Margin Guidance:** Company targets 11% to 12% EBITDA margin for the full year FY24, aiming for improvement of 1% to 1.5% annually in FY25 and FY26. - **Revenue Growth:** Projected revenue growth of 18% to 20% for FY24, with volume growth being the key driver; value growth depends on raw material (yarn) prices. - **Profitability:** PAT grew 22% YoY in Q2 FY24; half-year PAT declined due to raw material cost and mix changes but expected to improve with margin gains. - **Long-Term Strategy:** Focus on premiumization, expansion of product mix, retail tie-ups, and contract manufacturing to scale operations and profitability. - **Exports:** New export unit opened; export revenue expected to pick up in Q4 FY24, contributing positively to growth. - **Market Segments:** Growth expected across economy, mid-premium, and premium segments, with mid-premium and premium showing higher volume growth rates (20-22%). - **Operational Improvements:** Working capital reduction and manageable capex aimed to support sustainable margin expansion.

- Thermal wear segment had a good order book in Q2 FY24. - Quarter two thermal wear sales were around INR 30 crores (7% of total revenue). - Much of the thermal inventory held (INR 70 crores as of March) has been utilized. - Order book for Q3 FY24 largely depends on the upcoming season and weather conditions in the next 10-15 days. - Exports have been muted this quarter; normalization expected from Q4 FY24 when global markets, especially Europe, recover. - Contract manufacturing revenue for H1 FY24 was around INR 4.5 crores; scaling up expected as units mature. - Future revenue growth depends significantly on yarn/raw material prices and market demand conditions. - Price hikes taken in early October were withdrawn due to competition; future pricing will depend on yarn price stability.