Any current/future new fundraising through debt or equity?

The company is in the middle of negotiations for one or two acquisitions in India, expected to conclude in this quarter (Q2 or Q3). Funding for acquisitions will be a mix of debt and equity; exact ratio will depend on valuation and payment structure once finalized. Management emphasized they will avoid increasing interest burden significantly while funding acquisitions. No specific new debt or equity fundraising has been planned or concluded yet for capex or expansions; decisions will be made after acquisition conclusions. Current long-term debt stands around INR70 crores with INR9 crores shor

Any current/future capex/capital investment/strategic investment?

The company is working on one or two acquisition proposals in India, expected to conclude soon. Post-acquisition funding will be planned through a mix of equity and debt; details to be finalized after valuation. No immediate plans for organic capacity expansion; focusing on filling current capacity and ramping up utilization. Potential acquisitions will add approximately INR100-125 crores to the top line. Maintenance capex is budgeted annually at around 1.5% to 2% of turnover. Replacement cost of equipment for both plants is estimated around INR100 crores. Future expansions or new

Future growth expectations in sales/revenue/volumes?

Targeting INR300 crores turnover by filling pending capacity in the current year. Aiming for INR400 crores turnover next year with the same capacity. Expecting 15%-20% growth in India and UAE markets in Q3. Order book worth INR25 crores in India and AED 40 million in UAE to be delivered over 5-6 months. Expansion plans contingent on market demand; evaluating acquisitions for added capacity (~INR100-125 crores top line). Ramp-up in UAE plant capacity utilization expected; targeting 100% utilization by FY25-26. Increasing presence in new geographies like Europe and the U.S. with ongo

Future growth expectations in earnings/operating earnings/profits/EPS?

The company targets around INR300 crores turnover in the current year and aims for INR400 crores next year with existing capacity, indicating strong revenue growth. EBITDA margins are expected to rise from about 13.81% to 15%-16% in FY25, with potential to improve by another 2%-3% at full capacity. Operational efficiency gains and new value-added products (like lamination and bulletproof glass) are anticipated to enhance margins and profitability. Expansion into new geographies (U.S. and Europe) and acquisition-driven growth (adding INR100-125 crores top line) are expected from Q3 onward. Tax

Current/ Expected Orderbook/ Pending Orders?

UAE order book is around AED 40 million (approx. INR 80-85 crores) as of August 2024. About 75% of the UAE order book is from the domestic UAE market; 25% from Qatar, Bahrain, Africa, and other GCC countries. India has a confirmed project order book of around INR 25 crores, expected to be delivered over the next 5-6 months. On a daily basis, India sees new order bookings of approximately INR 10-12 lakhs from retail and smaller projects. The company is negotiating 3-5 sizable projects in the U.S. and 2-3 projects in India, expected to enhance Q3 and Q4 operations. For Q3, expected turnover grow

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Sejal Glass LtdQ2 FY24Industrial Products

Sejal Glass Ltd Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹740P/E: 32.5Market Cap: ₹934 CrSector: Industrial Products

Management growth scorecard

Revenue

Category 3

Margin

Category 1

Fundraise

Yes

Order

Yes

Capex

Yes

4 of 5 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 3

→Targeting INR300 crores turnover by filling pending capacity in the current year.
→Aiming for INR400 crores turnover next year with the same capacity.
→Expecting 15%-20% growth in India and UAE markets in Q3.
→Order book worth INR25 crores in India and AED 40 million in UAE to be delivered over 5-6 months.
→Expansion plans contingent on market demand; evaluating acquisitions for added capacity (~INR100-125 crores top line).
→Ramp-up in UAE plant capacity utilization expected; targeting 100% utilization by FY25-26.
→Increasing presence in new geographies like Europe and the U.S. with ongoing negotiations.
→Launching value-added products (lamination, bulletproof glass) to boost revenues and margins starting next month.
→EBITDA expected to improve to 15%-16%, possibly more with operational efficiencies and new product mix.

Margin guidance

Category 1

→The company targets around INR300 crores turnover in the current year and aims for INR400 crores next year with existing capacity, indicating strong revenue growth.
→EBITDA margins are expected to rise from about 13.81% to 15%-16% in FY25, with potential to improve by another 2%-3% at full capacity.
→Operational efficiency gains and new value-added products (like lamination and bulletproof glass) are anticipated to enhance margins and profitability.
→Expansion into new geographies (U.S. and Europe) and acquisition-driven growth (adding INR100-125 crores top line) are expected from Q3 onward.
→Tax benefits in India will continue for 3-5 years, improving net earnings.
→Overall, sequential quarterly growth is projected, with Q4 expected to be the strongest quarter, driving improved earnings and EPS.

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Fundraise plans

Yes

→The company is in the middle of negotiations for one or two acquisitions in India, expected to conclude in this quarter (Q2 or Q3).
→Funding for acquisitions will be a mix of debt and equity; exact ratio will depend on valuation and payment structure once finalized.
→Management emphasized they will avoid increasing interest burden significantly while funding acquisitions.
→No specific new debt or equity fundraising has been planned or concluded yet for capex or expansions; decisions will be made after acquisition conclusions.
→Current long-term debt stands around INR70 crores with INR9 crores short-term working capital loan, and total consolidated debt approximates INR140 crores.
→No mention of QIP or fresh equity fundraising currently; focus is on negotiating acquisitions and using internal approvals combined with debt-equity financing.

Order book

Yes

→UAE order book is around AED 40 million (approx. INR 80-85 crores) as of August 2024.
→About 75% of the UAE order book is from the domestic UAE market; 25% from Qatar, Bahrain, Africa, and other GCC countries.
→India has a confirmed project order book of around INR 25 crores, expected to be delivered over the next 5-6 months.
→On a daily basis, India sees new order bookings of approximately INR 10-12 lakhs from retail and smaller projects.
→The company is negotiating 3-5 sizable projects in the U.S. and 2-3 projects in India, expected to enhance Q3 and Q4 operations.
→For Q3, expected turnover growth in India and UAE by 15%-20% each.

Capex plans

Yes

→The company is working on one or two acquisition proposals in India, expected to conclude soon.
→Post-acquisition funding will be planned through a mix of equity and debt; details to be finalized after valuation.
→No immediate plans for organic capacity expansion; focusing on filling current capacity and ramping up utilization.
→Potential acquisitions will add approximately INR100-125 crores to the top line.
→Maintenance capex is budgeted annually at around 1.5% to 2% of turnover.
→Replacement cost of equipment for both plants is estimated around INR100 crores.
→Future expansions or new acquisitions depend on market demand and achieving targeted turnover and EBITDA.
→No decided plans yet regarding entry into float glass manufacturing; market study ongoing.
→Value-added products (e.g., lamination, bulletproof glass) are being introduced to enhance product basket and margins.

How does Sejal Glass Ltd rank vs peers in Industrial Products?

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