Any current/future new fundraising through debt or equity?

No further equity increase planned beyond the already mentioned QIP issue. Current QIP procedure to be followed as per regulatory guidelines; timing not specifically stated. Any remaining funding needs beyond QIP (e.g., acquisition, capex) expected to be met through debt. No plans to monetize assets such as EPC business or spare land to fund acquisition; entirely debt-funded if needed. Incremental capex related to the acquisition and integration will be funded through planned debt and QIP proceeds. Management confirmed no new incremental capex program beyond the one completed in FY'2

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

The CAPEX program (approx. Rs. 750 crores) initiated primarily for specialty products targeting global coatings and plastics markets was completed in FY'23 and has started yielding positive results. No new incremental CAPEX is planned currently; existing investments will drive future growth and EBITDA improvement. The standalone business expects Rs. 1,500 crores in revenue from this CAPEX within 3-4 years. For the Rieco engineering business, no major new investments are planned; focus is on transformation by strengthening organization and business processes to improve consistency and execution

Future growth expectations in sales/revenue/volumes?

Management expects growth in sales/revenue in the mid-teens percentage range going forward (Page 15). The standalone 750 crores CAPEX is projected to generate about 1,500 crores in revenue within 3-4 years, targeting completion around 2026-27 (Page 15). Export sales growth driven by coatings and plastics segments, with exports growing robustly (44% year-on-year in Q2) (Pages 4, 10). CAPEX investments have started yielding results, leading to increased market share and new specialty products contributing to growth (Pages 6, 10). Volume growth is the major driver behind recent revenue increases,

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

Sudarshan Chemical expects mid-teens growth driven by CAPEX programs, particularly in coatings and plastics segments (Page 15). The Rs. 750 crore CAPEX is projected to generate approximately Rs. 1,500 crore in revenue within 3-4 years, contributing to margin improvement (Pages 10, 15). Pigment business shows steady volume-driven growth with EBITDA margin improvement from 12.8% to around 16%, indicating enhanced profitability (Pages 4, 5). Rieco's EBITDA margins are targeted to rise from sub-10% to low teens, potentially mid-teens, focusing on robust processes rather than new CAPEX (Page

Sudarshan Chem.Q2 FY25Chemicals & Petrochemicals

Sudarshan Chem. Q2 FY25 Earnings Call Analysis

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

Price: ₹1,081P/E: 84.7Market Cap: ₹8.6K CrSector: Chemicals & Petrochemicals

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

Management expects growth in sales/revenue in the mid-teens percentage range going forward (Page 15).
The standalone 750 crores CAPEX is projected to generate about 1,500 crores in revenue within 3-4 years, targeting completion around 2026-27 (Page 15).
Export sales growth driven by coatings and plastics segments, with exports growing robustly (44% year-on-year in Q2) (Pages 4, 10).
CAPEX investments have started yielding results, leading to increased market share and new specialty products contributing to growth (Pages 6, 10).
Volume growth is the major driver behind recent revenue increases, with prices remaining stable (Page 12).
Rieco engineering business transformation is focused on improving consistency and possible EBITDA margin improvement to mid-teens in phases (Page 16).
No major incremental CAPEX expected for pigment business for next 3 years; current investments expected to drive growth (Page 11).

Margin guidance

Category 3

Sudarshan Chemical expects mid-teens growth driven by CAPEX programs, particularly in coatings and plastics segments (Page 15).
The Rs. 750 crore CAPEX is projected to generate approximately Rs. 1,500 crore in revenue within 3-4 years, contributing to margin improvement (Pages 10, 15).
Pigment business shows steady volume-driven growth with EBITDA margin improvement from 12.8% to around 16%, indicating enhanced profitability (Pages 4, 5).
Rieco's EBITDA margins are targeted to rise from sub-10% to low teens, potentially mid-teens, focusing on robust processes rather than new CAPEX (Page 16).
Operating leverage in pigment business is limited as cost increases largely correlate with sales growth, but gross and EBITDA margins have improved YoY (Pages 9, 12).
No major incremental CAPEX planned post FY'23, focusing on execution and leveraging existing assets for profitability (Page 6).
Integration of Heubach acquisition expected by Q4; long-term confidence in business prospects reiterated (Page 16).

See what Sudarshan Chem. management said on margin guidance — free account, 30 seconds.

Fundraise plans

Yes

No further equity increase planned beyond the already mentioned QIP issue.
Current QIP procedure to be followed as per regulatory guidelines; timing not specifically stated.
Any remaining funding needs beyond QIP (e.g., acquisition, capex) expected to be met through debt.
No plans to monetize assets such as EPC business or spare land to fund acquisition; entirely debt-funded if needed.
Incremental capex related to the acquisition and integration will be funded through planned debt and QIP proceeds.
Management confirmed no new incremental capex program beyond the one completed in FY'23; future capex will be maintenance/refurbishment.

Order book

The provided transcript from the Sudarshan Chemical Industries Limited Q2 FY'25 earnings call does not explicitly mention the current or expected order book or pending orders. Key takeaways related to business outlook, growth, and capacity utilization include: - Export growth is strong, driven by CAPEX investments mainly focused on coatings and plastics segments. - The 750 crore CAPEX is expected to deliver about 1,500 crore revenue over 3-4 years. - Current capacity utilization for new products is at around the mid-point of the 3-4 year target journey (around 18 months into the process). - Market share expansion is happening organically and also expected to improve post Heubach acquisition. - No explicit numbers or commentary on the current order book or pending orders were discussed. If you need detailed order book data, it may be available in more specific operational or investor documents outside this transcript.

See what Sudarshan Chem. management said on order book — free account, 30 seconds.

Capex plans

The CAPEX program (approx. Rs. 750 crores) initiated primarily for specialty products targeting global coatings and plastics markets was completed in FY'23 and has started yielding positive results.
No new incremental CAPEX is planned currently; existing investments will drive future growth and EBITDA improvement.
The standalone business expects Rs. 1,500 crores in revenue from this CAPEX within 3-4 years.
For the Rieco engineering business, no major new investments are planned; focus is on transformation by strengthening organization and business processes to improve consistency and execution.
Incremental costs related to ongoing acquisition transactions will arise as the deals close (expected in Q4 FY'25), but no material new capacity investments are expected for the Heubach acquisition side for the next 3-5 years besides maintenance/refurbishment.
Future growth is expected from existing CAPEX-driven products and enhanced market penetration, not from fresh capital investments.

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Sudarshan Chem. Q2 FY25 Earnings Call Analysis

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