Any current/future new fundraising through debt or equity?

The company currently has no immediate pressure to raise funds through debt. The management aims to avoid taking on any debt and is confident there will be no need for debt financing, with a 99.9999% assurance. Capital expenditure of around INR 200 crores is being funded mostly through internal accruals and existing investments (INR 140 crores non-lien investments plus INR 70 crores already invested). The company has a strong liquidity position with INR 141 crores in non-lien deposits. No mention was made of any planned equity fundraising. Overall, the strategy is to rely on internal funds and

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

Ongoing capital expenditure projects support growth by expanding production capacity in Chemicals and Fertilizers divisions. Total capex as of September 30, 2024, stands at approximately INR 68.48 crores, funded through internal accruals. Planned total capex is around INR 200-225 crores, with INR 70 crores already invested and INR 140 crores in non-lien investments. Unit 5 capex trial production expected around December-January, with commercial production from March 2025. Unit 6 capex planned to start trials by Q2 FY26 (July-September 2025), with slight delays acceptable. Investment targets im

Future growth expectations in sales/revenue/volumes?

For FY25, revenue is projected around INR 800 to 825 crores with a PAT of approximately INR 60 crores. For FY26, expected revenue is INR 900 to 1000 crores with PAT margin improving to around 8.5% to 9%. For FY26-27, revenue target is around INR 1,400 crores plus or minus 5%. Volume growth in Chemicals: 4.8% YoY in H1 FY25; Fertilizers volume increased 23.6% YoY for H1 FY25. Current capacity utilization is about 65%, with a potential 5-10% improvement room. Ongoing capex of INR ~200 crores aimed to enhance capacity without debt, supporting future volume and revenue growth. Expect g

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

Revenue is expected to grow from INR800-825 crores in FY25 to around INR1,000 crores (+/- 5%) in FY26, and further to INR1,400 crores (+/- 5%) in FY27. PAT for FY25 is projected around INR60 crores (+/- 5%), with an expected improvement to 8.5%-9% margin in FY26. EBITDA margins, previously at 14%-15%, are currently resting but expected to recover in the next 1-2 quarters. Asset turnover for the ongoing INR200 crore capex is estimated at 2 to 2.25 times. Management anticipates better profitability and margins in coming years, aiming to return to earlier EBITDA (15%) and PAT (around 10%) levels

Current/ Expected Orderbook/ Pending Orders?

As of November 13, 2024, Shree Pushkar Chemicals & Fertilisers Limited reports a strong order book position. Orders are secured up to January, indicating a well-packed order pipeline. The company does not face any significant cash flow pressure and is strategically managing inventory to optimize pricing. This stable order flow supports their guidance of achieving INR800-825 crores revenue for FY25, with an expected growth to around INR1,000 crores in FY26. The positive demand outlook and government measures boosting industrial production underline confidence in sustained orders.

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Shree Pushkar Chemicals & Fertilizers LtdQ3 FY24Chemicals & Petrochemicals

Shree Pushkar Chemicals & Fertilizers Ltd Q3 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 2

Fundraise

Order

N/A

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→For FY25, revenue is projected around INR 800 to 825 crores with a PAT of approximately INR 60 crores.
→For FY26, expected revenue is INR 900 to 1000 crores with PAT margin improving to around 8.5% to 9%.
→For FY26-27, revenue target is around INR 1,400 crores plus or minus 5%.
→Volume growth in Chemicals: 4.8% YoY in H1 FY25; Fertilizers volume increased 23.6% YoY for H1 FY25.
→Current capacity utilization is about 65%, with a potential 5-10% improvement room.
→Ongoing capex of INR ~200 crores aimed to enhance capacity without debt, supporting future volume and revenue growth.
→Expect gradual EBITDA margin improvement back toward historical 14-15% levels over next 1-2 quarters.
→Inventory management strategy is aligned with expected pricing improvements, reflecting confidence in future demand.

Margin guidance

Category 2

→Revenue is expected to grow from INR800-825 crores in FY25 to around INR1,000 crores (+/- 5%) in FY26, and further to INR1,400 crores (+/- 5%) in FY27.
→PAT for FY25 is projected around INR60 crores (+/- 5%), with an expected improvement to 8.5%-9% margin in FY26.
→EBITDA margins, previously at 14%-15%, are currently resting but expected to recover in the next 1-2 quarters.
→Asset turnover for the ongoing INR200 crore capex is estimated at 2 to 2.25 times.
→Management anticipates better profitability and margins in coming years, aiming to return to earlier EBITDA (15%) and PAT (around 10%) levels over time.
→Conservative outlook highlights steady improvement rather than miraculous jumps, with better pricing and operational efficiencies driving growth.
→EPS is expected to improve alongside PAT growth but specific numbers were not disclosed.

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Fundraise plans

→The company currently has no immediate pressure to raise funds through debt.
→The management aims to avoid taking on any debt and is confident there will be no need for debt financing, with a 99.9999% assurance.
→Capital expenditure of around INR 200 crores is being funded mostly through internal accruals and existing investments (INR 140 crores non-lien investments plus INR 70 crores already invested).
→The company has a strong liquidity position with INR 141 crores in non-lien deposits.
→No mention was made of any planned equity fundraising.
→Overall, the strategy is to rely on internal funds and avoid external borrowing in the near future.

Order book

→As of November 13, 2024, Shree Pushkar Chemicals & Fertilisers Limited reports a strong order book position.
→Orders are secured up to January, indicating a well-packed order pipeline.
→The company does not face any significant cash flow pressure and is strategically managing inventory to optimize pricing.
→This stable order flow supports their guidance of achieving INR800-825 crores revenue for FY25, with an expected growth to around INR1,000 crores in FY26.
→The positive demand outlook and government measures boosting industrial production underline confidence in sustained orders.

Capex plans

Yes

→Ongoing capital expenditure projects support growth by expanding production capacity in Chemicals and Fertilizers divisions.
→Total capex as of September 30, 2024, stands at approximately INR 68.48 crores, funded through internal accruals.
→Planned total capex is around INR 200-225 crores, with INR 70 crores already invested and INR 140 crores in non-lien investments.
→Unit 5 capex trial production expected around December-January, with commercial production from March 2025.
→Unit 6 capex planned to start trials by Q2 FY26 (July-September 2025), with slight delays acceptable.
→Investment targets improved operational efficiencies, cost savings (e.g., solar power reducing electricity costs by 50-60%), and capacity expansion.
→The company aims to avoid debt for these investments, relying mainly on internal resources.
→Strategic investments also include enhancing product offerings and forward/backward integration for sustainable growth.

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