Any current/future new fundraising through debt or equity?

No explicit mention of any current or future fundraising through debt or equity in the transcript. The company expects insurance payouts (~Rs. 100 crore) to start coming in December-January, which will help reduce debt. Operational cash flow generation is improving, aiding debt reduction. The company is funding CAPEX (~Rs. 200 crore over two years) largely from internal accruals and insurance reimbursements. No indications or plans were discussed regarding raising funds via equity or additional debt during the call.

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

Total CAPEX planned around Rs. 200 crore over this and next year, including growth and reinstatement projects. Rs. 47 crore CAPEX done in H1 FY25, with approx. Rs. 50 crore expected in H2 FY25 and another Rs. 50 crore in H1 FY26. Major part (around Rs. 100 crore) for Vashivali factory rebuild due to fire incident. Additional Rs. 50 crore to Rs. 60 crore incremental CAPEX expected post insurance reimbursement. Building two new factories domestically and proposing a new factory in Europe (~Rs. 45-50 crore each). European manufacturing capacity near 75-80% utilization; plans for one or two new Eu

Future growth expectations in sales/revenue/volumes?

The company expects second half FY25 revenue growth to be better than the first half, targeting around 14% full-year growth, exceeding the midterm CAGR target of 12%. Growth guidance for FY26 and FY27 remains intact with continued momentum. Strong growth is driven by small and mid-sized customers (40% growth contribution) and global accounts (40%). New Creative Development Centres in Germany and UK will start contributing meaningful revenue in 6-8 months, supporting future growth beyond 12%. Investments in Europe and America are expected to pay off in coming years, enhancing global pre

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

The company expects to achieve a 20% EBITDA margin within the next 2-3 years, up from the current adjusted margin of around 16-18.5%, after accounting for ongoing investments in new growth areas. Investments in new Creative Development Centres in Europe (Germany, Manchester) and America will start generating meaningful revenue in 6-8 months, supporting future growth. Revenue growth is expected to be above 12% CAGR with a stronger second half for FY25, driven by contributions from small and mid-sized customers and global MNC accounts. Insurance payouts related to recent fire incidents are

Current/ Expected Orderbook/ Pending Orders?

The transcript does not explicitly mention specific figures or details about the current or expected order book or pending orders. However, it highlights a strong top-line performance driven by steady momentum in small and mid-sized customers and execution of prestigious global MNC orders. There is mention of clearing backlog from previous disruptions, implying pending orders were addressed. Growth is supported by new global accounts and expansion in various markets, including Europe and the US. The company anticipates better second half performance with strategic initiatives contributing to o

IN US

Sale is live|00:00:00left today

S H Kelkar & Company LtdQ3 FY24Chemicals & Petrochemicals

S H Kelkar & Company Ltd Q3 FY24 Earnings Call Analysis

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

Price: ₹135P/E: 38.1Market Cap: ₹1.9K CrSector: Chemicals & Petrochemicals

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

→The company expects second half FY25 revenue growth to be better than the first half, targeting around 14% full-year growth, exceeding the midterm CAGR target of 12%.
→Growth guidance for FY26 and FY27 remains intact with continued momentum.
→Strong growth is driven by small and mid-sized customers (40% growth contribution) and global accounts (40%).
→New Creative Development Centres in Germany and UK will start contributing meaningful revenue in 6-8 months, supporting future growth beyond 12%.
→Investments in Europe and America are expected to pay off in coming years, enhancing global presence.
→India operations to double capacity; Europe to add 50% capacity over the next two years facilitating volume growth.
→The company is cautiously optimistic pending global economic changes but sees opportunities arising from shifts in the supply chain and tariffs.

Margin guidance

Category 3

→The company expects to achieve a 20% EBITDA margin within the next 2-3 years, up from the current adjusted margin of around 16-18.5%, after accounting for ongoing investments in new growth areas.
→Investments in new Creative Development Centres in Europe (Germany, Manchester) and America will start generating meaningful revenue in 6-8 months, supporting future growth.
→Revenue growth is expected to be above 12% CAGR with a stronger second half for FY25, driven by contributions from small and mid-sized customers and global MNC accounts.
→Insurance payouts related to recent fire incidents are expected by December-January, improving cash flow and reducing debt.
→Incremental investments in R&D and production capacity are expected to taper, enabling margin expansion as revenues from these investments ramp up.
→Overall, sustained volume-led growth, product mix improvements, and strategic international expansion underpin positive earnings and profit outlook.

3 more insights locked — sign up free to unlock

Fundraise plans

→No explicit mention of any current or future fundraising through debt or equity in the transcript.
→The company expects insurance payouts (~Rs. 100 crore) to start coming in December-January, which will help reduce debt.
→Operational cash flow generation is improving, aiding debt reduction.
→The company is funding CAPEX (~Rs. 200 crore over two years) largely from internal accruals and insurance reimbursements.
→No indications or plans were discussed regarding raising funds via equity or additional debt during the call.

Order book

Yes

→The transcript does not explicitly mention specific figures or details about the current or expected order book or pending orders.
→However, it highlights a strong top-line performance driven by steady momentum in small and mid-sized customers and execution of prestigious global MNC orders.
→There is mention of clearing backlog from previous disruptions, implying pending orders were addressed.
→Growth is supported by new global accounts and expansion in various markets, including Europe and the US.
→The company anticipates better second half performance with strategic initiatives contributing to order flow.
→Opportunities are expected from geopolitical shifts, such as potential tariff changes in the US that may favor Indian suppliers over Chinese ones, which could translate to new orders.
→Overall, order visibility appears positive with ongoing investments to support future growth and capacity expansion.

Capex plans

Yes

→Total CAPEX planned around Rs. 200 crore over this and next year, including growth and reinstatement projects.
→Rs. 47 crore CAPEX done in H1 FY25, with approx. Rs. 50 crore expected in H2 FY25 and another Rs. 50 crore in H1 FY26.
→Major part (around Rs. 100 crore) for Vashivali factory rebuild due to fire incident.
→Additional Rs. 50 crore to Rs. 60 crore incremental CAPEX expected post insurance reimbursement.
→Building two new factories domestically and proposing a new factory in Europe (~Rs. 45-50 crore each).
→European manufacturing capacity near 75-80% utilization; plans for one or two new European factories over next 2-3 years.
→Closure planned for Mulund factory after new factories come online, leading to OPEX savings.
→Investments include Creative Development Centres: Germany and Manchester operational; new US center starting with gradual investment ramp-up.
→Annual recurring additional OPEX of around Rs. 20 crore in employee and operational costs for development centers.

How does S H Kelkar & Company Ltd rank vs peers in Chemicals & Petrochemicals?

Pro feature

1S H Kelkar & Company Ltd

Rev 3Mar 3

See full Chemicals & Petrochemicals sector rankings

Want more stocks like S H Kelkar & Company Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.

Build my portfolio