S H Kelkar & Company Ltd

- The company does not expect any large capex or inorganic growth in the near future, having completed significant acquisitions in the past 4 years. - Current debt stands around Rs. 500 crore, primarily from acquisitions. - Cash flows are expected to bring down the debt. - There is no mention of plans for new debt or equity fundraising. - Capital allocation policy includes distributing 30-40% of cash profit as dividends or share buyback. - The last major outlay was for the Indonesia project; no major future capex is lined up. - Incremental capex on product development and infrastructure is planned but not large-scale fundraising. **Conclusion:** No new major fundraising through debt or equity is planned currently or in the near future.

- Current large capex: Indonesia factory, expected to be ready by next financial year. - No large production capex expected in the coming year; focus on incremental capex. - Incremental capex targeted at product development teams and infrastructure to support growth and diverse projects. - Product development teams expected to double or triple in the next 3-4 years. - European facilities (Italy and Netherlands) optimized for increased production without significant capex currently. - Possible new manufacturing or development capex in Europe anticipated around 18 months from now (2025-26). - No major inorganic acquisitions planned; focus on organic growth through subsidiaries in the US and Europe. - Capital allocation policy involves distributing 30-40% of cash profit as dividends or share buybacks; incremental cash likely to be used for debt repayment.

- Company targets a 10-12% year-on-year revenue growth for the mid-term (3 to 5 years), with potential to exceed this based on current strong order wins. - Growth is expected across all regions including Europe, India, Southeast Asia, and new markets like the US. - Volume growth outpaces price increases; last quarter’s growth primarily driven by volume with minimal price impact (~1-2%). - Market share expansion in India and growth in Flavours segment anticipated to contribute materially. - New product introductions and new accounts (including wins from a global MNC) expected to add meaningful revenue from H2 FY25 onwards. - Southeast Asia factory commissioning to boost regional growth. - Lower capacity utilization (<50%) allows for operating leverage and volume growth without major capex in near term. - E-commerce and startup segments in India identified as growth drivers. - Overall, sustained double-digit growth in volume and sales targeted with a focus on market penetration and operational efficiency.

- The company targets a 12%+ CAGR revenue growth over the mid-term (3-5 years) with some quarters possibly showing higher growth due to base effects and new order ramp-up. - EBITDA margins are projected to sustainably reach around 16%-16.5%, with occasional quarters potentially hitting 18%. - ROCE (Return on Capital Employed) is expected to improve from the current 13% to upwards of 20% within 4 to 5 quarters, driven by growth and inventory reduction. - PAT (Profit After Tax) could grow from approx. Rs. 120-130 crore (annualized) to Rs. 140-150 crore with 10% top-line growth and 10% inventory control. - The ramp-up of new large orders (e.g., MNC deal) may take 12-18 months, contributing further to growth post H2 FY25. - Flavours segment margins are expected to improve gradually with focus on profitable segments and operational efficiencies. - No major capex is planned currently, allowing focus on organic growth and efficient capital use.

- The company has received orders from an MNC with a cumulative value of approximately Rs. 300 crore. - The expected run rate from these orders is around Rs. 100 crore per annum over 3 years. - However, the ramp-up of these orders is delayed by 12 to 18 months due to redesign and revamp of the project by the client. - First orders for new projects have started but are currently not significant in revenue. - Full rollout and meaningful revenue contribution from new orders are expected by the second half of FY '25. - The company is not actively chasing new tenders or orders beyond the current pipeline. - Order wins are spread across domestic and Indonesian markets, supported by ongoing capacity expansion.