Satia Industries Ltd

- There is no mention of any current or planned new fundraising through debt or equity in the discussion. - The company has been focusing on reducing its long-term debt and has made significant repayments, including INR35 crores paid recently. - The management mentioned efforts to reduce finance costs via debt prepayment. - There are no indications of fresh equity raising or new debt issuance discussed on page 16 or surrounding pages. - Overall, the company seems to prioritize debt reduction over raising new funds through debt or equity currently.

- There is a CWIP (Capital Work in Progress) of INR 137 crores mainly related to: - Wood pulp modification project (INR 80 crores) - Capacity enhancement of boiler with purchase of second-hand boilers from ITC (around INR 20 crores) - Rice straw boiler project (INR 25-27 crores) - Future capacity expansions: - Additional 15,000 to 20,000 tons production on the new machine in the current financial year - Proposal to increase speed of existing PM3 machine from 650 to around 800-850 meters per minute, expected to add approximately 15,000 tons of production in FY 24-25 - Investment in upgrading and commissioning machines, with decisions linked to efficiency targets (70% rated capacity) before proceeding further - Strategic engagement with Ernst & Young for government subsidy/benefit pursuits on a new INR 300 crores project

- Additional production of 15,000 to 20,000 tons is expected from the new machine this year, raising total production to about 225,000 to 230,000 tons in the financial year. - Planned speed increase of the existing PM3 machine from 650 m/min to around 800-850 m/min in FY24-25, adding another 15,000 tons annually. - Overall production projected to grow by 8%-10% next year, targeting 225,000 to 235,000 tons. - Incremental demand driven by New Education Policy (NEP) with an expected increase in writing and printing paper demand of about 50-60 lakh tons over 1-2 years. - Export growth is limited to around 4%-5%, focusing mainly on fulfilling existing customer obligations. - Focus remains on maintaining stable margins despite international paper price volatility and cost fluctuations.

- Satia Industries expects further production increase with additional tonnage of 15,000 to 20,000 tons in the current year, raising total production to 225,000-230,000 tons. - Planned increase in machine speed (PM3) will add another 15,000 tons per year starting FY 24-25. - EBITDA margins anticipated to remain around 21% plus-minus, supported by stable paper prices and decreasing raw material and chemical costs. - Order book is healthy with over 24,000 tons to be executed in Q1 FY24, supporting revenue visibility. - Strong cash generation and debt repayment (INR35 crores prepaid recently) expected to lower finance costs, supporting profitability. - Positive market outlook due to New Education Policy driving writing and printing paper demand growth. - FY23 saw EBITDA growth of 123% to INR4,118 million with 21.9% margins; Q4 FY23 EBITDA margin reached a historic high of 26.2%.

- The company has a healthy order book with over 24,000 tons to be executed in Q1 of financial year 2024. - Recently received orders include over 8,000 tons from Gujarat and Telangana state boards. - These orders provide solid revenue visibility to manage any price volatility. - Management expects sustained margins based on current pricing and order visibility. - The company is focused on fulfilling these pending orders timely to leverage market demand.