Thyrocare Technologies Ltd

- Currently, Thyrocare has about ₹30 crores of debt with a three-year tenure against assets, with no bank guarantee or collateral. - In the immediate next 3 to 6 months, there is no plan for further debt funding as the company has enough cash. - Future CAPEX investments will be evaluated to decide between equity, cash, or debt, depending on the best available options. - The management views taking debt for healthcare equipment financing as prudent and cost-effective compared to using equity. - They are open to taking more term loans if needed for business CAPEX, but no firm decision has been made yet. - No anticipated increase in dividends reflected in future plans.

- H1 FY24 CAPEX spent: Rs. 46 crores. - Rs. 16-17 crores on replacing 24 old machines. - Rs. 16 crores on lab infrastructure improvements and expansions. - Rs. 6 crores on LLP investments. - Remaining on IT and other CAPEX. - H2 FY24 planned CAPEX: - Rs. 5 crores to replace older machines. - Rs. 5 crores on physical infrastructure and IT overhaul. - Rs. 10 crores on international expansion, primarily Tanzania lab setup. - Total anticipated Rs. 20 crores in H2 FY24. - FY25 estimated CAPEX: Around Rs. 50 crores (mainly maintenance CAPEX and expansions). - Capital advances of Rs. 16 crores given for other business plans. - Philosophy: Prefer debt financing (currently Rs. 30 crores term loan) over equity for equipment funding to optimize capital allocation. - Expansion focus includes Tanzania (JV incorporated) and potential future geographies in East Africa, Middle East.

- Franchise business revenue grew about 20% YoY with 8% volume growth; remaining growth driven by price mix (Rahul Guha, Page 17). - Price hikes were marginal at 4-5%, major growth achieved through mix of larger Aarogyam packages, Jaanch test menu, vitamins, etc. - Jaanch brand (diagnostic packages) reached ₹1 crore per month within 3 months and targets ₹25-30 crores revenue next year (Page 13). - Hospital channel expansion is slow with only 2-3 hospitals currently, business still learning and not material yet (Page 14). - Nuclear business expected to reach profitability with ₹12-12.5 crores quarterly revenue by H1 FY 2025 (Page 10). - Overall 10% consolidated revenue growth YoY (Page 5) with franchise business strong and partnership business growing excluding API and B2G. - Operating leverage likely to start kicking in FY 2025 with EBITDA margin of 28-30% maintained currently (Page 9).

- The company anticipates stable EBITDA margins in the 28-30% range for FY '24, with limited operating leverage due to ongoing investments in growth and business promotion. - Operating leverage is expected to start kicking in from FY '25 onwards, potentially improving profitability. - Nuclear business EBITDA margins are constrained by old equipment maintenance costs; normalized EBITDA expected around current levels, with growth in revenue to 12-12.5 crores quarterly expected by H1 FY '25. - Franchise business grew 20% YoY, partnership business (excluding API & B2G) grew 22%, indicating strong revenue growth drivers. - Price increases are marginal (~4-5%) with most revenue growth driven by a favorable product mix. - International expansion (Tanzania) is underway, with plans to break even and expand in FY '25. - Dividend payouts unlikely to increase in the near future as earnings are reinvested in growth and capital expenditure.

- The company has recently won government contracts for TB testing in Gujarat and Assam. - These contracts total approximately ₹4.5 crores annually with a tenure of one year. - Work on these contracts started from the current month of the call. - The government business is still in early stages; the company intends to pursue more government contracts as confidence in execution grows. - No specific commentary on a larger or longer-term order book or pending orders beyond these government contracts was provided during the call.