Future growth expectations in sales/revenue/volumes?

Targeting 15% year-on-year revenue growth for the next 2 to 3 years. Revenue growth for FY25 expected to be in the range of 13% to 15%, primarily volume-driven. Q1 FY25 revenue growth guidance is 18% to 20% year-on-year. Volume growth in FY24 was 17%, with premium segment growing 25%, mid-premium 17%, and economy 16%. Growth drivers include expansion in athleisure and women's wear segments, modern trade, and new initiatives like the Pragati scheme. No current capacity expansion planned; operating at 70-75% capacity with routine capex of INR 12-15 crores. Management optimistic about

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

Management targets a revenue growth of 13%-15% for FY25, primarily driven by volume growth. For Q1 FY25, revenue growth is expected at 18%-20% year-on-year. EBITDA margin guidance for FY25 is in the range of 10%-11%, up from around 9.6% in FY24. Historical EBITDA margins were 14%-15%; management aims to return to this level over the next 2-3 years if growth targets are met. Volume growth in premium segment is strong (25% YoY), and growth drivers include athleisure, women’s wear, and export segments. Management does not foresee major capacity expansion in FY25, focusing instead on organic growt

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Rupa & Company LtdQ1 FY24Textiles & Apparels

Rupa & Company Ltd Q1 FY24 Earnings Call Analysis

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

No major expansion plan for FY '25. Routine capex planned in the range of INR 12-15 crores for FY '25. Current operations running at 70%-75% of working capacity; capacity expansion can be done if required. Company has cash available for potential expansion. Management is also looking for inorganic growth opportunities. Opened 29 Exclusive Brand Outlets (EBOs); plans to open about 20 more this year (mix of high street and malls). Exploring retail opportunities in airports and railway stations but high rentals are a concern, especially airports. Capex in FY '24 was around INR 7-8 crores. These

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

Price: ₹162P/E: 16.4Market Cap: ₹1.1K CrSector: Textiles & Apparels

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

0 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Targeting 15% year-on-year revenue growth for the next 2 to 3 years.
→Revenue growth for FY25 expected to be in the range of 13% to 15%, primarily volume-driven.
→Q1 FY25 revenue growth guidance is 18% to 20% year-on-year.
→Volume growth in FY24 was 17%, with premium segment growing 25%, mid-premium 17%, and economy 16%.
→Growth drivers include expansion in athleisure and women's wear segments, modern trade, and new initiatives like the Pragati scheme.
→No current capacity expansion planned; operating at 70-75% capacity with routine capex of INR 12-15 crores.
→Management optimistic about improving margins to historical levels of 14-15% if targeted growth sustained.

Margin guidance

Category 3

→Management targets a revenue growth of 13%-15% for FY25, primarily driven by volume growth.
→For Q1 FY25, revenue growth is expected at 18%-20% year-on-year.
→EBITDA margin guidance for FY25 is in the range of 10%-11%, up from around 9.6% in FY24.
→Historical EBITDA margins were 14%-15%; management aims to return to this level over the next 2-3 years if growth targets are met.
→Volume growth in premium segment is strong (25% YoY), and growth drivers include athleisure, women’s wear, and export segments.
→Management does not foresee major capacity expansion in FY25, focusing instead on organic growth and some inorganic opportunities.
→Price hikes of 3%-5% are planned depending on raw material prices, which could improve gross margins.
→Overall, management is optimistic about improving operating earnings and margins supported by initiatives like the Pragati scheme and product mix enhancements.

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Fundraise plans

- There is no mention of any new fundraising through debt or equity for FY '25. - The company stated there are no expansion plans for FY '25; only routine capex of INR 12-15 crores is planned. - The company is currently operating at around 70%-75% of working capacity and has sufficient cash in books for any capacity expansion if required. - Management indicated they are always looking for inorganic growth opportunities but did not specify any planned fundraising related to that. - Net debt has significantly reduced to INR 6 crores as on March 24 from INR 134 crores last year, indicating improved debt position with no immediate need for new debt. Overall, no current or future fundraising through debt or equity has been indicated in the call.

Order book

The transcript does not provide any specific information on the current or expected order book or pending orders for Rupa & Company Limited. Key points related to business outlook include: - Targeting 15% year-on-year revenue growth for the next 2-3 years. - Growth drivers identified as Athleisure and women's wear segments. - Pragati scheme to reorganize distribution and improve channel efficiency. - No mention of specific order book or pending orders. - Management focused on expanding EBOs and exploring inorganic opportunities. - Inventory levels maintained low currently, expected to build up when raw material prices stabilize. Therefore, there is no disclosed data on order book or pending orders in the available transcript.

Capex plans

- No major expansion plan for FY '25. - Routine capex planned in the range of INR 12-15 crores for FY '25. - Current operations running at 70%-75% of working capacity; capacity expansion can be done if required. - Company has cash available for potential expansion. - Management is also looking for inorganic growth opportunities. - Opened 29 Exclusive Brand Outlets (EBOs); plans to open about 20 more this year (mix of high street and malls). - Exploring retail opportunities in airports and railway stations but high rentals are a concern, especially airports. - Capex in FY '24 was around INR 7-8 crores. These points summarize Rupa & Company's current and near-future capital investment and strategic initiatives as per the discussion.

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