Tara Chand Infra

- The company plans a capex of INR 40-50 crores annually going forward, subject to new orders and opportunities. - While specifics of fundraising were not explicitly mentioned, the company aims to maintain a debt-to-equity ratio of around 1 or below; it is currently at 1.08 as of December 31, 2023. - Debt levels stood at INR 89.52 crores as of December 31, 2023. - No explicit mention of fresh debt or equity issuance was made during the call. - The company is focusing on organic growth through equipment addition funded by internal accruals and existing financial resources.

- The company plans a capital expenditure (capex) of INR 40 to 50 crores annually, depending on new orders and client opportunities. - Recent capex for the nine months ended December 31, 2023, was INR 48.52 crores. - The capex primarily involves addition of equipment, focusing on cranes with capacities upwards of 100 tons, with plans to expand into higher capacity cranes (~250 tons and above). - Capex decisions are aligned with long-term visibility of revenue generation from acquired assets. - Future capex will consider entry into sectors such as wind energy and hydropower as suitable opportunities arise. - The company is cautious and undertakes due diligence before entering new sectors, targeting specialized EPC contracts with better margins rather than generic infra projects. - The company aims to maintain a debt-to-equity ratio around or below 1, balancing growth and financial health.

- The company expects to continue growing at a rate of 20% to 25% in the next 2 to 3 years based on recent performance. - Top-line growth may accelerate with new orders, especially from the EPC (Engineering, Procurement, and Construction) segment, which has potential for bigger contracts. - The EPC division is developing cautiously, focusing on contracts with good profit margins rather than just volume growth. - Equipment additions via capex are planned at around INR 40-50 crores annually, depending on order flow and client demands. - The focus is on expanding crane capacity, including higher tonnage cranes (~250 tons and above), to meet client needs. - Demand-supply dynamics are improving, supporting better pricing and longer contract tenures. - Company aims to increase equipment utilization and revenue contributions, targeting up to 90% utilization in the equipment rental segment.

- The company anticipates continuing its current growth rate of 20% to 25% in top line over the next 2 to 3 years. - EPC division is expected to contribute to faster top-line growth, though margins may be lower than the current profile. - The focus in EPC is on specialized contracts with good profit margins, not just volume. - Margins are expected to sustain or improve due to a shift towards industrial capacity expansion projects which have better pricing and longer contracts. - Capital expenditure planned in the range of INR 40 to 50 crores annually will support growth by adding higher capacity cranes (around 250 tons and above). - Debt-to-equity target is to reduce to 1 or below, maintaining healthy ROE. - Equipment rental segment's average monthly yield is around 2.5%, with efforts to achieve higher utilization (targeting 90% utilization in coming quarters). - Overall, operating earnings and profits expected to grow steadily with expanded order book and improved contract terms.

- As of February 1, 2024, the company's order book for FY24 stands at approximately INR 36 crores. - The company anticipates securing new orders in the coming months to support ongoing growth this financial year and beyond. - Contract tenures vary by segment: Equipment hiring contracts range from 2-3 months up to 2 years, while steel logistics contracts (warehousing and transportation) with public sector undertakings typically span 4-7 years. - The company is actively working on winning new EPC contracts, which could drive stronger top-line growth, though exact figures remain uncertain. - Efforts are ongoing to increase utilization of equipment and secure long-term contracts in key sectors like cement, steel, petrochemicals, and renewables.