Sportking India Ltd

- No plans for raising funds through equity dilution; funding will be through internal accruals and debt. - Management aims to maintain a debt-to-equity ratio below 1. - Future expansions (brownfield or greenfield) will be funded by a combination of internal accruals and debt while keeping long-term debt under control. - No current plans for acquisitions; focus is on brownfield expansion only. - No mention of immediate new debt fundraising; existing long-term debt repayment for FY25 is around INR 55-60 crores. - Short-term debt expected to reduce from INR 450 crores to INR 100 crores within 3-4 months due to inventory normalization.

- Sportking India Limited has planned capital investments primarily focused on yarn business expansion. - Recent capex includes INR363 crores in FY23 and INR105 crores in FY24 mainly for new capacity and solar plants. - Maintenance capex is minimal; most spend is for new investments. - Brownfield expansion is preferred with capacity to add around 1.5 lakh spindles within existing facilities. - Greenfield expansion potential exists on new land with no capacity limits. - Cost of expansion has slightly decreased compared to last year. - No plans for acquisition; growth will be through Brownfield or Greenfield expansion funded by internal accruals and manageable debt (debt-equity target below 1). - Downstream or forward integration into garments/fabrics are being considered but no concrete plans yet. - The company expects to announce new investment projects soon but remains optimistic about yarn business growth.

- For the first half of FY25, Sportking India Limited expects revenue around INR 1,200 crores ±3%, reflecting full benefit from expanded capacity. - Sales volumes expected to remain stable with revisions mainly from price fluctuations. - Management anticipates continued margin improvement over next two quarters, with an industry-optimal EBITDA margin target of 15-16% in the medium term. - Export demand is stable with shipments largely on CIF/CFR basis; export contribution may increase slightly. - Domestic demand shows stability with gradual improvement, though synthetic yarn segment lags due to challenges in the Chinese market. - Capacity expansion plans focus on yarn segment through brownfield projects; no acquisitions planned. - Order book management remains steady with regular long-term customers providing demand visibility. - Cotton price outlook is benign, providing a favorable raw material scenario for future growth.

- The company is optimistic about margin improvement with EBITDA margins expected to rise from around 11% currently toward an industry-optimal 15%-16% over the next quarters. - First half of FY25 is projected to have revenues around INR 1,200 crores (+/- 3%) with better yarn spreads. - Earnings are expected to improve over the previous quarters, with potential to achieve EBITDA margins of 12%-13% soon. - The management sees continuous demand stabilization and margin expansion, cautiously optimistic of better second-half performance. - No clear guidance but ballpark indications suggest steady top-line growth with margin improvement driven by better demand, stable input costs, and capacity utilization. - Operating leverage expected to improve with full accrual of benefits from expanded capacity. - Management targets maintaining debt below 1x equity while funding expansions via a mix of internal accruals and debt, with no immediate acquisition plans.

- Sportking India Limited maintains a policy to keep a certain order book for both exports and domestic sales, sticking to it consistently whether in good or bad times. - The order book typically allows comfortable execution of orders within a buffer of plus/minus 2-5 days. - Most business is conducted with regular, long-term customers, some with relationships spanning 20+ years. - Current capacity utilization is high (~95-96%), indicating a strong order pipeline. - The company is operating at full capacity, with no immediate plans for capacity expansion in the next 6-8 months, implying a stable order intake aligned with existing capacity. - Order book visibility is maintained to ensure smooth production and supply chain management without significant delays.