Swaraj Suiting Ltd

- Nasir Khan mentioned plans for a fundraising primarily aimed at expanding into garmenting and yarn manufacturing. - The fundraising is intended for inorganic growth but is currently subject to market conditions. - The company has not finalized the total amount or the mode of fundraising. - The preferred mode discussed is a **preferential allotment** rather than a rights issue. - Srini M suggested considering a rights issue to enable existing shareholders to participate, but the company is leaning towards preferential issuance. - No specific timeline or detailed terms for the fundraising were disclosed.

- Swaraj Suiting Limited is planning to enter garmenting and expand yarn manufacturing, which is driving the current fundraising through preferential allotment. - The company has recently doubled its denim capacity from 15 lakh meters to 21 lakh meters per month and expanded grey fabric capacity by 7.5 lakh meters per month. - The cotton fabric division has commenced operations and is stabilizing. - The yarn plant commissioning faced a slight delay but is expected to be operational by early December. - Future CapEx will be focused on backward integration, primarily garmenting and yarn, not on fabric capacity expansion. - The current year's CapEx is expected to be completed by year-end, with next year targeting revenues of INR 1000 crore plus from the existing plant capacities. - The utility cost reduction due to the new machinery and in-house yarn plant will improve margins.

- Revenue guidance for FY25 remains strong at around INR 600 crore, with a target of approximately INR 450 crore sales in H2 FY25. - Expected revenue contribution in H2 FY25: - Cotton fabric division: ~INR 150 crores - Denim division: ~INR 210-220 crores - Yarn and job work/trading: balance of revenue - Capacity expansion has more than doubled; total manufacturing capacity now ~40 lakh meters/month (20 lakh cotton fabric + 21 lakh denim fabric). - Full utilization of existing plant could achieve INR 1000 crore+ revenue in the future. - Order books are rotational but stable; denim order book around 25-30 lakh meters. - Export revenues targeted at INR 100-150 crore for the year, with export revenue at 10-15% of total currently. - Domestic market demand rising, helped by strong brand relations and certifications. - Yarn division commissioning expected to enhance margins and support growth.

- Margins are expected to improve due to doubled capacity and better utilization, especially in denim and cotton fabric divisions. - Expansion has increased capacity from 15 lakh meters to 40 lakh meters, reducing utility costs significantly and boosting margins. - Revenue guidance remains strong with a target of INR 600 crores for the year, supported by a stable order book and expanded capacity. - Cotton fabric division targeting around INR 150 crores revenue in H2 FY25; denim division targeting INR 210-220 crores. - Export revenue target of INR 100-150 crores for the year, with 10-15% contribution already achieved in H1. - EBITDA margin improved from 11.1% (H1 FY24) to 15.4% (H1 FY25), indicating strong profitability improvement. - EPS increased 79.5% YoY to INR 5.26 in H1 FY25 from INR 2.49 in H1 FY24, with further growth expected due to operational efficiencies.

- Domestic order book is around INR 80-90 crores. - Export order book is around INR 21 crores, combining cotton and denim fabrics. - Denim order book has historically remained at 25-30 lakh meters, matching capacity. - Cotton fabric order book currently at around 15 lakh meters and rapidly increasing. - Order books are rotational, typically covering 45-50 days, not long-term (7-8 months). - New orders come in as existing orders are delivered; long-term order visibility is limited. - Yarn and trading revenues expected around INR 40-50 crores in upcoming H2. - Overall, order book supports the revenue guidance of INR 600 crore with H2 sales target of ~INR 450 crore.