Yasho Industries Ltd

- No plans for equity dilution or QIP (Qualified Institutional Placement) as confirmed by Parag Jhaveri. - Current debt level has peaked; no intention to increase debt further. - Term loan repayment starts April 2025, with expected repayment of INR 45-50 crores in FY '26. - Company aims to restrict debt to 2-2.5 times EBITDA, currently targeting to be close to 3 times by end of FY '25. - Any surplus cash generated is planned to be reinvested for future expansion rather than debt repayment. - No new capital expenditure planned beyond repair capex of INR 5-10 crores for FY '25 until utilization exceeds 70% in new facility.

- Current Year (FY'25) planned repair capex is about INR 5 crores to INR 10 crores only; no major new capex planned yet. - Further capex decisions will depend on achieving over 70% utilization at the Pakhajan facility, expected by Q4 FY'25 or Q1 FY'26. - No immediate plans for new capex beyond maintenance, focus is on ramping up existing capacity. - Once utilization target is met, company will consider next phase of expansion. - Management does not plan to increase debt beyond current levels and aims to maintain debt to EBITDA ratio around 2 to 2.5 times. - The fully commissioned Pakhajan facility with 20,000 MT capacity is a recent major capital investment, operational for growth and ramp-up. - No immediate plan for equity dilution through QIP for margin improvement or balance sheet comfort.

- Yasho Industries targets revenue of INR 900 crores for FY 2025 with an EBITDA margin of 19%-20%. - The newly commissioned Pakhajan facility, with 20,000 MT capacity, is expected to ramp up utilization from 10% in Q1 to 70%-80% by Q3/Q4 FY 2025, leading to substantial volume growth. - Full capacity utilization (~90%) for both Pakhajan and Vapi facilities is anticipated by FY 2026, targeting revenues between INR 1,200-1,300 crores. - Volume growth is strong, with a 27% year-on-year increase in exports despite shipping challenges. - The company plans to secure long-term supply contracts with customers post-trials, enhancing visibility and stable revenues. - Expansion beyond current capacities will be considered after reaching 70% utilization at Pakhajan, projected by end of FY 2025. - Growth is supported by entering new domestic and international customers and leveraging a new U.S. subsidiary to expand market presence.

- Yasho Industries expects volume growth with capacity utilization rising at the new Pakhajan facility from 10% in Q1 FY25 to 70-80% by Q3/Q4, and nearly 90% by FY26, supporting revenue growth. - Revenue guidance for FY25 is around INR 900 crores with an overall EBITDA margin of 19-20%; FY26 revenue is projected between INR 1,200-1,300 crores. - The company anticipates EBITDA margins to stabilize and improve from Q3/Q4 FY25 onwards as utilization ramps up. - Operating leverage at full capacity is expected to increase profitability, with the new capacity alone targeting around INR 550 crores revenue at optimum utilization. - Despite near-term negative PAT due to depreciation and interest costs from the new facility, profit margins are expected to grow as operations stabilize. - Expansion of international market presence (US, Europe, South America, Middle East) aims to increase volume and profit margins incrementally by 3-5% in the US. - No immediate plans for additional capex until 70% utilization is reached; focus on improving operational efficiency.

- Yasho Industries is currently conducting trials with a number of both domestic and international customers, including existing and new ones. - Following successful trials, the company expects to enter into long-term supply contracts with these customers, ensuring better visibility and stable order flow. - Utilization at the new Pakhajan facility is expected to ramp up from about 10% in Q1 FY25 to 70-80% by Q3/Q4 FY25, supporting order fulfillment. - The company anticipates managing the scale-up without significant additional working capital debt due to efficient order flow and stabilized raw material and selling prices. - Export volumes have shown healthy growth (~27% YoY), indicating an expanding order book in international markets despite some shipping and pricing pressures. - Management is confident of achieving revenue targets of around INR900 crores in FY25, driven by these orders and capacity ramp-up.