S P Apparels Ltd

- No explicit mention of any current or planned new fundraising through debt or equity in the transcript. - Discussion on liquidity indicates a strong position with cash and cash equivalents of INR 121 crores and net debt of INR 40 crores as of March 31. - Retail business cash loss of INR 6-7 crores in the current year may require Board decision on further support, but no clear indication of fresh capital allocation or fundraising. - Board is to decide on capital allocation, especially concerning retail segment funding. - No direct mention of seeking external investors or equity infusion at present; preference seems to be internal capital management and selective investments.

- New factory construction at Sivakasi is planned, with construction starting in July 2023 and expected to be operational in 12 months. - Plans to increase capacity by about 20% from the Sivakasi unit. - Considering a second shift to utilize existing capacity without additional capital expenditure. - Continuing installation of rooftop solar energy plants in new and existing factories, targeting 1-2 megawatts capacity addition every year. - Factory consolidation completed by closing smaller factories and transferring employees to bigger units for better efficiency. - No further factory closures planned; focus is on capacity expansion within existing factories. - Capital allocation for FY '24 focuses on core garmenting area capex, though specific guidance is awaited from management/board decisions.

- Garment division growth is expected to be around 14% to 15% for FY '24 (Page 9, 10, 11). - Volume growth in garments is anticipated to be about 20% to 22% (Page 10). - Capacity utilization currently at 70%, with potential to increase by 10%-15% and additional 20% capacity from Sivakasi factory (Page 4, 11). - Expansion via second shift to increase capacity without capital expenditure is being considered (Page 11). - Order book size is INR 365 crores, with expectations for quarter-on-quarter increase (Page 6, 14). - Emerging inquiries from new customers in U.S. and EU expected to drive growth (Page 4). - Retail division (Crocodile and new brands) aims to break even EBITDA next year, with Crocodile expected to contribute more positively (Page 8, 9). - Spinning is captive; growth impact mainly on EBITDA margin, not revenue (Page 14).

- The company targets **14%-15% growth in the Garment division for FY '24**, considered achievable. - PAT (Profit After Tax) growth is expected to be substantially higher due to normalization in spinning and retail segments. - EBITDA margins for the Garment division are guided to be sustained around **18%**, with management confident this level is achievable regardless of cotton price fluctuations. - The retail business is expected to reach **EBITDA breakeven next year** on a consolidated basis, led by improved performance of the Crocodile brand offsetting losses in the newer brands. - Capacity utilization is around 70%, expected to increase by 10-15%, which should support volume and profitability growth. - New factory in Sivakasi expected to be operational within 12 months, enhancing capacity and future growth. - Overall, management expresses confidence in **year-on-year better results** and ambitious plans over the next 5 years.

- Current order book size: INR 365 crores (as of the latest quarter). - The order book is solid and booked till August. - Order book includes both long-term orders (for up to 1 year) and short-term urgent deliveries; hence, it doesn't directly correlate with quarterly revenue. - Management expects a quarter-on-quarter increase in the order book. - Despite a reduction in average price per piece (from INR 140-150 to INR 120-130), order volumes and orders continue to increase, especially in baby garments. - The company benefits from customer consolidation, leading to increasing orders from existing customers and potential new customers in the pipeline. - Lead time for orders generally ranges from 90 to 120 days.