Shree Pushkar Chemicals & Fertilizers Ltd

- 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.

- 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.

- 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.

- 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.

- 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.