Solar Industries India Ltd

- No specific mention of new fundraising through debt or equity was made during the call on page 14 or the surrounding pages. - The company plans a significant capex of around INR 800 crores for FY'25, split equally between defense (INR 400 crores) and explosives (INR 400 crores). - The capex will be funded from company resources, with mention of improved cash accruals and profits supporting investment needs. - Management highlighted that recent capex programs were higher than cash accruals during earlier phases, but current profits/cash accruals exceed investments. - There is no explicit indication of plans for raising fresh debt or equity in the near term. - Overall, the focus is on internal accruals and strategic reinvestment rather than fresh fundraising.

- FY'25 planned capex is around INR 800 crores, split equally: - INR 400 crores towards defense business expansion. - INR 400 crores towards explosives business expansion. - Explosives capex includes: - Expansion at current mother plant in Nagpur. - New greenfield facility near Gujarat and Maharashtra border. - Investments related to recently acquired Rajasthan Explosives and Chemicals. - Investments to support bulk explosives production and new product development. - Smaller investments for entering new overseas markets within 7-8 current countries. - Defense capex focused on: - Scaling up capacity to meet increased orders and future opportunities. - Development of new products like anti-drone systems. - Capex programs are intended for creating capacity for the next 4-5 years and will likely scale up in coming years.

- FY'25 revenue expected to grow by around 30%, driven by a threefold increase in defense business revenue (from ~INR509 crores to ~INR1,500 crores). - Domestic explosives volumes anticipated to grow by 15% or more, with international business expected to grow around 10-15%. - Long-term volume growth target remains 15%+ compounded annually, with a bottom-line growth of at least 20% compounded annually over 3-5 years. - Defense business expected to constitute about 20% of annual revenue in FY'25 (up from 9%). - Overseas business facing short-term challenges (e.g., higher interest rates, hyperinflation), but expected improvements and better performance in FY'25. - Expansion into new markets like Rajasthan (India) and Saudi Arabia planned. - Capex of ~INR800 crores planned in FY'25 to support growth, split evenly between defense and explosives.

- The company expects defense revenue to triple from around INR509 crores in FY'24 to about INR1,500 crores in FY'25, significantly boosting earnings. - Overall revenue growth guidance for FY'25 is around 30%, driven by a 15%+ volume growth in core explosives and a threefold increase in defense business. - EBITDA margins are expected to improve further from current levels (~23%), supported by better pricing and higher defense sales. - Explosives business margins are anticipated around 20%-22%, while defense commands better margins, lifting overall profitability. - The company forecasts volume growth of 15%+ compounded over next few years, with a longer-term outlook targeting 15%-20%+ volume growth and at least 20% bottom-line CAGR. - Capex plan for FY'25 is around INR800 crores (~INR400 crores each for defense and explosives) to support capacity expansions and product development aligned with future growth. - Management expects earnings and profits to continue doubling approximately every 4 years, with potential for even faster growth.

- Current defense order book stands at around INR 2,600 crores, the highest level recorded by the company. - The company expects to receive large domestic defense orders, including long-term Pinaka rocket orders, soon pending final approvals. - Export orders in defense have increased significantly, with expectations of more orders due to the current geopolitical situation and global market vacuum. - Domestic explosives order book for Coal India and Singareni is around INR 2,500 crores. - With existing and upcoming orders, defense revenue is expected to triple to around INR 1,500+ crores in FY'25. - Overall, top-line growth guidance for FY'25 is around 30%, supported by the strong order book and anticipated new orders. - Expansion into new overseas markets like Saudi Arabia and Rajasthan to add to order inflows.