Satia Industries Ltd

- Currently, there is no immediate plan for equity fundraising through preferential allotment, though it remains a possibility in the future. - Term loans outstanding are around Rs. 310 crores, with expected repayments and disbursements balancing out, targeting about Rs. 285-300 crores outstanding by March 2024. - Existing loans are being used to fund ongoing CAPEX, including the rice straw-based boiler and hardwood pulping capacity expansion. - The company has tie-ups with UCO Bank and HDFC Bank for these loans. - Working capital utilization is low, around Rs. 20-25 crores, mostly non-fund based bank guarantees. - No fresh term loans are confirmed beyond current arrangements; disbursements and prepayments are managed simultaneously.

- Current year CAPEX is planned at approximately Rs. 150 crores. - Major ongoing investments include: - Rice straw-based boiler expected to be commissioned in the last quarter. - Hardwood pulping capacity expansion, currently on slow pace due to competitiveness of imported hardwood pulp. - Expansion for capacity increase by about 100 tons per day is planned for FY24-25, pending necessary clearances. - CAPEX funded through existing loans and new loans tied up with UCO Bank (boiler) and HDFC Bank (hardwood pulping). - The company is monitoring government implementation in molded products sector but continues management focus without significant progress yet.

- The company expects a 5% to 10% increase in volume for the current financial year compared to last year (Page 11). - Capacity utilization is around 90%, with plans to expand production capacity by approximately 100 tons per day in FY 24-25 (Page 9). - Order book remains robust with expected orders of around 30,000 tons valued at approximately ₹300 crores including GST (Page 12). - New orders from clients such as NCERT and DAV Committee provide good revenue visibility and pricing stability (Page 5, Page 7). - Management anticipates steady demand, with no concerns over selling despite seasonal off-seasons (Page 7). - EBITDA margins are expected to moderate slightly but full-year topline is projected around ₹1,700-1,800 crores with possible +5% to +10% volume growth (Page 7).

- Q1 FY24 PAT surged by 178% YoY to Rs. 841 million, indicating strong growth momentum. - The company expects a 5% to 10% increase in volume for the fiscal year. - EBITDA margin for FY24 is expected around 25%, slightly down from a peak of 31% in Q1, due to raw material price normalization. - Management anticipates a 200 basis points improvement in EBITDA margin during FY24 over FY23. - Topline revenue guidance for FY24 is between Rs. 1,700 to 1,800 crores, with a bottom-line around ±12%. - Capacity utilization is currently near peak, with plans for a potential 100 tons/day expansion in FY24-25 to support growth. - Order book robust with a minimum order intake of 30,000 tons (~Rs. 300 crores), ensuring revenue visibility. - Continued cost-saving measures (lower raw material, fuel, packaging) have supported margin improvement.

- Current order book includes orders worth approximately 15,000 to 20,000 tons at the start of the quarter, largely cleared in Q1 FY24. - New orders secured from prestigious clients such as NCERT and DAV Committee. - Expecting total incoming orders of around 30,000 tons, valued roughly at Rs. 300 crores including GST. - Forecast of 40,000 to 50,000 tons of orders expected in next 4 to 5 months (Aug-Sep timeframe) from 4-5 textbook boards. - These upcoming orders are expected to have better pricing than average market rates. - Order execution is planned throughout Q2 and Q3 FY24, providing strong revenue visibility. - Management optimistic about steady inflow and execution of orders, reflecting robust demand.