Welspun Living Ltd

- No specific mention of any new fundraising through debt or equity in the current quarter or near future. - The company is funding the dividend and buyback (up to Rs. 278 crore) entirely through internal resources and free cash flows. - Net debt has reduced from Rs. 2,333 crores in FY21 to Rs. 1,354 crores by end of FY24, despite dividend and buyback outflows. - For FY25, expected CAPEX is Rs. 860 crores, funded internally. - FY26 CAPEX projected at Rs. 300-400 crores, with no additional funding guidance given yet. - Management highlighted focus on reducing net debt and maintaining financial discipline without raising new debt or equity at present.

- Q1 FY25 CAPEX was Rs. 206 crores, mainly towards towel project at Anjar and pillow project in the US. - For FY25, total CAPEX guidance is Rs. 860 crores, including: - Anjar towel project - Pillow project in the US - Rs. 75 crores for transmission line for renewable energy - Maintenance CAPEX - FY26 CAPEX is expected between Rs. 300 to 400 crores, details not yet finalized. - Plans to expand flooring capacity from 18 million sq. meters to 27 million sq. meters when utilization surpasses 18 million. - Renewable energy initiatives include setting up 18 MW solar plant at Vapi to meet ~30% of power requirements. - Jacquard towel expansion (6,400 tons) plant expected to be operational by August-September 2024.

- Welspun Living Limited expects to achieve 12%-15%+ top-line growth in FY '25, with a 17% YoY growth already reported in Q1 FY '25. - Export markets, especially the US, are anticipated to continue growing positively, buoyed by retailers like Walmart and Target showing a positive outlook. - Domestic consumer business growth is expected to pick up post the festive season with expansion into new categories and channels. - Flooring business is projected to grow at a 20%-25% CAGR over the next 3-4 years, with capacity utilization targeted above 80% by FY '27. - Emerging businesses (domestic consumer, global brands, advanced textile, and flooring) grew 7% YoY in Q1 FY '25 and contribute about 30% of total revenues; steady growth across these areas is expected. - Capacity expansions, including towel and pillow projects, and renewable energy initiatives, are underway to support volume growth.

- Welspun Living expects good margin improvement of 200 bps plus over the next two years driven by competitive power costs from FY ‘26-’27 onward (Page 13). - The company aims for EBITDA margins in the range of 16%-18% over the next couple of years as emerging businesses gain momentum (Page 12). - Domestic flooring business targets 20%+ CAGR growth over next 3-4 years, achieving 15%-16% EBITDA margins at 80%+ capacity utilization by FY ‘27 (Page 11). - For FY ‘25, EBITDA margin guidance is 15%-15.5%, with expectation of margin expansion as volume grows (Pages 10, 12). - EPS for Q1 FY ‘25 was Rs. 1.93 compared to Rs. 1.66 in Q1 FY ‘24, showing 15% YoY growth and 27% up QoQ (Page 5). - Overall, the company is confident of sustaining top-line and bottom-line growth with improved ROCE and ROE, creating value for investors (Page 13).

- The transcript does not provide explicit details on the current or expected order book or pending orders figures. - However, from the Q&A session on Page 6, Rajvee from JM Financial asked about order book and demand outlook in the US market for H2 FY25. - Dipali Goenka responded that demand remains good as seen in Q1 with good visibility, especially as the US prepares for the holiday season. - The company is cautiously optimistic about the demand and has committed to around 12% growth for FY25, expecting to exceed it as they proceed. - No exact numbers on order book or pending orders were shared publicly in this call. - The overall positive demand outlook implies a healthy order book with steady growth expected in the second half of FY25.