Shaily Engineering Plastics Ltd

- Pharma division capex of about INR120-125 crores is underway, expected to be completed between Q1 and Q2 of the current year, with commercial production starting by Q2. - Expansion involves setting up a modular plant with a total of 36 molding machines; currently installing 12 machines. - No other major capex plans beyond the pharma division at present. - Future capacity expansions will only be triggered when utilization consistently exceeds 75-80%. - Marginal investments may be made on specialized equipment or tooling based on specific business needs, especially for in-house products. - Existing equipment in the Toy division is multipurpose and can be used for other products/businesses to improve utilization, avoiding dedicated investments. - Overall focus is on improving utilization and sweating existing assets before undertaking significant new capital expenditure.

- Pharma division expected to grow 45%-50% in FY '24; targeting around 14-15 million pens from 10 million in FY '23. - Pharma growth to maintain at least 30% annually for the next 4 years (Amit Sanghvi). - Auto injector segment anticipated to contribute growing revenue by FY '25; higher value products than pens. - Steel division to see good growth and improved utilization in FY '24 compared to previous year. - Toys business expected to decline or remain lower in FY '24 due to competitive pricing and market conditions. - Capacity expansions triggered only after reaching 75%-80% utilization; currently increasing capacity without major capex. - Overall business growth and margin expansion expected as pharma scales up with a strong pipeline. - Some uncertainty and no explicit long-term revenue guidance given by management.

- The company refrains from giving explicit guidance on long-term ROCE, earnings, returns, or profits. (Page 15) - Pharma division is expected to maintain upwards of 30% growth over the next 4 years, but exact forecasting is difficult due to its developing nature. (Page 8) - The focus remains on sustaining and expanding margins as pharma business scales up with a strong pipeline. (Page 5) - The company anticipates improvements in capacity utilization, especially in the steel business by FY '25. (Page 9) - Growth and margin expansion are expected as pharma scales up further, though global economic challenges have delayed expected growth by about a year. (Page 5) - No firm guidance on EPS or profitability growth was provided, emphasizing disciplined capital use and margin focus. (Pages 3-4, 15)

- The company has a healthy order book in the steel division, with expectations for full plant utilization in due course, though no specific timeline was shared. - The pharma division is actively growing, with addition of new customers and increasing commercial sales, especially in pen products; however, specific order book figures were not disclosed. - Discussions with multiple players continue for new orders, but detailed customer-wise order backlog or pending orders are not shared due to confidentiality. - In the toys division, the company sees no growth and expects lower sales, being selective due to margin challenges and competition, leading to limited new orders. - Overall, the company refrains from giving specific order book or pending order numbers publicly but indicates ongoing expansion and customer engagement.

- No current plans for additional capex beyond the INR120-125 crores pharma expansion. - No mention of new debt or equity fundraising discussed in the call. - Existing expansions are being funded with disciplined capital use; debt to equity stands at 0.47x, long-term debt to equity at 0.16x. - Capacity expansions or investments will only be triggered once utilization consistently exceeds 75-80%. - Focus remains on sweating existing assets and improving utilization before any further major capital investments. - No indications of fresh fundraising through debt or equity were provided in the transcript.