S P Apparels Ltd

- The current order book stands at approximately Rs. 425 crores. - Capacity utilization has significantly improved, currently running close to 3,900 machines at around 80% utilization. - There is an expectation of increased order inflow due to the China Plus One strategy and customer consolidation. - The company is exploring offshore production in Sri Lanka to quickly augment capacity and handle new orders. - Expansion plans include adding capacity in the woven garment sector, potentially through acquisitions. - Growth guidance includes a proposal of 15-20% revenue growth for FY2024 and FY2025, with a possibility of an additional 5% if offshore production scales up. - Customers' concurrence is awaited for confirming order volumes related to offshore production in Sri Lanka.

- No explicit mention of any new fundraising through debt or equity in the provided pages. - The company stated their liquidity position is strong and that they have serviced all debt up to date (Page 4). - There is no reported need for growth funding for the retail business, as they are not planning big growth there (Page 7). - Working capital utilization has increased due to higher interest rates, but no indication of raising fresh funds (Page 4). - The company mentioned plans for expansion via asset-light models, acquisitions, and offshore production, but no specific capital raise mentioned (Pages 5-12). - Bank tie-ups for retail working capital needs are in place, indicating reliance on existing financing rather than fresh equity or debt (Page 7).

- SP Apparels is expanding capacity in the woven garment sector by looking to add more capacity through potential acquisitions of woven garment factories in India. - They have initiated a new project for capacity expansion in Tamil Nadu, India, with work already started for a new factory. - Capacity utilization is targeted to increase to 90% by the end of the year with labor mobilization from other states and new projects. - Incorporation of a new subsidiary in Sri Lanka is underway for asset-light offshore manufacturing by leasing or contract basis factories; running factory acquisition is planned with customer concurrence and expected to be operational late Q4 FY2024 or Q1 FY2025. - No fixed capital budget is finalized for Sri Lanka expansion at present; the model is asset-light initially. - Retail business is not seeking significant growth funding currently and tied up with banks for internal working capital needs.

- Revenue growth guidance for FY2024 and FY2025 is projected at 15-20%, with a possibility of an additional 5% if offshore production scales up. - Capacity utilization is expected to rise to 90% by the end of the year, supporting volume growth. - Machine capacity is planned to increase from around 3,900 to 4,500 by year-end, with potential expansions up to 1,000-2,000 machines offshore in Sri Lanka. - New factory acquisitions, offshore production, and expansions in woven garments are key growth strategies. - The company is leveraging "China Plus One" strategy, benefiting from customer consolidation and diversification away from China. - Offshore production in Sri Lanka, starting late Q4 FY2024 or Q1 FY2025, will add to capacity and revenue. - New customer additions in SPUK and expansion in product categories (jersey, woven, kids, ladies, men’s wear) are planned but with cautious timing due to global economic conditions.

- Revenue growth guidance: Proposed 15-20% growth for FY2024 and FY2025; potential additional 5% growth if offshore production in Sri Lanka materializes. - EBITDA margins: Current EBITDA margin stands at 16.3% (Q1 FY2024); management is hopeful to achieve above 18% in coming quarters, targeting 18-20% EBITDA margin by FY2025. - Capacity expansion: Plans to increase machine utilization from around 3,900 to 4,500-4,800 by year-end, supported by labor additions including migrant workers and a new Tamil Nadu project. - Offshore production: Introducing offshore manufacturing in Sri Lanka from Q4 FY2024 or Q1 FY2025 to support capacity and order growth with an asset-light model. - Retail segment turnaround expected within seven quarters, with Crocodile brand already profitable and supporting others from Q3 FY2024. - Earnings per share (EPS): Q1 FY2024 EPS was Rs. 5.99; with growth and margin improvements, EPS expected to improve progressively.