Any current/future new fundraising through debt or equity?

Shree Pushkar Chemicals & Fertilisers Limited is currently financing its INR 215 crore CAPEX through internal accruals and a preferential issue to the promoter. The promoter has already brought in capital by exercising warrants, raising a total capital of INR 15.13 crores via preferential allotment. The company remains net cash positive through these investments. Additionally, the company has a non-lien deposit facility of INR 107.52 crores, providing financial flexibility for ongoing and future investments. Management indicated no plans or need for additional borrowings for the current CAPEX.

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

Total CAPEX budget of INR 215 crores allocated last year for capacity enhancement in chemical and fertilizer businesses through backward and forward integration. INR 1.90 crores spent in Q1 FY25 on establishing a 3.8 MW DC solar power plant under Maharashtra's Open Access Scheme. Additional INR 6.63 crores invested in Chemical and Fertilizer verticals as part of INR 125 crores allocated for strategic initiatives. CAPEX financed through internal accruals and preferential promoter issue, with promoters contributing INR 15.13 crores. Majority of the ongoing CAPEX expected to be completed

Future growth expectations in sales/revenue/volumes?

The company expects at least 15% growth in topline (sales/revenue) for FY25, with Q1 being the leanest quarter and gradual improvements through Q2 to Q4. Fertilizer segment is projected to grow 20%-25% compared to the previous year, supported by shortages in DAP and favorable government subsidies. Chemical division sales volume increased 17.8% YoY and the company sees business stabilizing with improving demand in dyes and intermediates. Overall consolidated sales volume grew 22.4% YoY in Q1 FY25, reflecting strong momentum. EBITDA margins expected to improve to around 12%-13% in FY25 and poten

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

The company expects EBITDA margins to improve to around 12%-13% in the current financial year (FY25). For FY25-26, Shree Pushkar aims to return to historical EBITDA margins of 15%-17%. PAT margin guidance for the current year is approximately 7%-8%. The company anticipates at least 15% topline growth for the full year, with improving profitability quarters ahead. Fertilizer business is expected to grow 20%-25% year-on-year due to favorable market conditions. CAPEX of INR 215 crores is underway, expected to be completed by Q1 FY26, largely funded by internal accruals which should further boost

Current/ Expected Orderbook/ Pending Orders?

The company currently has an order book of approximately 35 to 40 days in hand, reflecting increased demand and volumes. Generally, the fertilizer segment maintains an order book of 15 to 20 days. The dyes segment typically holds around a month's order book. The intermediates segment also has around 15 to 20 days of orders pending. The current overall order book of 35 to 40 days is higher than usual, indicating improved order inflow and business stability compared to previous quarters. The company's increased capacity, including Unit 5, is supported by a strong backlog of orders reflecting goo

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Shree Pushkar Chemicals & Fertilizers LtdQ2 FY24Chemicals & Petrochemicals

Shree Pushkar Chemicals & Fertilizers Ltd Q2 FY24 Earnings Call Analysis

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

Price: ₹358P/E: 17.1Market Cap: ₹1.3K CrSector: Chemicals & Petrochemicals

Management growth scorecard

Revenue

Category 3

Margin

Category 1

Fundraise

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→The company expects at least 15% growth in topline (sales/revenue) for FY25, with Q1 being the leanest quarter and gradual improvements through Q2 to Q4.
→Fertilizer segment is projected to grow 20%-25% compared to the previous year, supported by shortages in DAP and favorable government subsidies.
→Chemical division sales volume increased 17.8% YoY and the company sees business stabilizing with improving demand in dyes and intermediates.
→Overall consolidated sales volume grew 22.4% YoY in Q1 FY25, reflecting strong momentum.
→EBITDA margins expected to improve to around 12%-13% in FY25 and potentially return to earlier levels of 15%-17% in FY26.
→The ongoing INR 215 crore CAPEX, primarily funded through internal accruals, is expected to enhance capacity and improve returns with a 3-4 year payback period.
→Solar power initiatives will contribute to cost reductions and improve margins going forward.

Margin guidance

Category 1

→The company expects EBITDA margins to improve to around 12%-13% in the current financial year (FY25).
→For FY25-26, Shree Pushkar aims to return to historical EBITDA margins of 15%-17%.
→PAT margin guidance for the current year is approximately 7%-8%.
→The company anticipates at least 15% topline growth for the full year, with improving profitability quarters ahead.
→Fertilizer business is expected to grow 20%-25% year-on-year due to favorable market conditions.
→CAPEX of INR 215 crores is underway, expected to be completed by Q1 FY26, largely funded by internal accruals which should further boost performance.
→With CAPEX coming online, ROCE and returns are expected to improve significantly over the next 3-4 years.
→Demand stabilization and improved pricing in the chemical and dye intermediates segment support a positive earnings outlook.

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Fundraise plans

→Shree Pushkar Chemicals & Fertilisers Limited is currently financing its INR 215 crore CAPEX through internal accruals and a preferential issue to the promoter.
→The promoter has already brought in capital by exercising warrants, raising a total capital of INR 15.13 crores via preferential allotment.
→The company remains net cash positive through these investments.
→Additionally, the company has a non-lien deposit facility of INR 107.52 crores, providing financial flexibility for ongoing and future investments.
→Management indicated no plans or need for additional borrowings for the current CAPEX.
→No mention of any future fundraising through debt or equity beyond the existing capital infusion was made during the call.

Order book

Yes

→The company currently has an order book of approximately 35 to 40 days in hand, reflecting increased demand and volumes.
→Generally, the fertilizer segment maintains an order book of 15 to 20 days.
→The dyes segment typically holds around a month's order book.
→The intermediates segment also has around 15 to 20 days of orders pending.
→The current overall order book of 35 to 40 days is higher than usual, indicating improved order inflow and business stability compared to previous quarters.
→The company's increased capacity, including Unit 5, is supported by a strong backlog of orders reflecting good market demand.

Capex plans

Yes

→Total CAPEX budget of INR 215 crores allocated last year for capacity enhancement in chemical and fertilizer businesses through backward and forward integration.
→INR 1.90 crores spent in Q1 FY25 on establishing a 3.8 MW DC solar power plant under Maharashtra's Open Access Scheme.
→Additional INR 6.63 crores invested in Chemical and Fertilizer verticals as part of INR 125 crores allocated for strategic initiatives.
→CAPEX financed through internal accruals and preferential promoter issue, with promoters contributing INR 15.13 crores.
→Majority of the ongoing CAPEX expected to be completed by Q1 FY26, funded primarily through internal accruals without reliance on borrowings.
→Payback period for the CAPEX estimated around 3-4 years, with ROCE expected to improve once projects complete and stabilize.
→Strategic priorities include capacity expansion, sustainability initiatives, and exploring new market opportunities.

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