Piramal Pharma Limited

Wow, another googly. What will be the price for this 50, 75 ?
Also, for those hoping for debt levels to go down (like me), nice dreaming, not happening soon.
Excerpt from last and only concall:

Sumit Gupta: Last question is if you can provide an outlook on the net debt levels and the interest cost?
Vivek Valsaraj: So, as we’ve guided, Sumit, earlier that our debt levels that we’re looking at about is four to four
and a half times EBITDA, and that’s the level that we should be comfortable standing by.
Sumit Gupta: So this is for FY’23 and ’24 or ’24 will be less?
Vivek Valsaraj: For FY’24 as well. As we’ve already guided that we’ll be having some growth investments that
we are going to do, so it would be on similar lines, the criteria would apply for FY’24 as well.

Another one:

Ranvir Singh: What level of debt we can expect by the end of FY’23?
Vivek Valsaraj: So, as I said earlier, the max debt that we’re looking for is in the range of four to four and a half
times of EBITDA. That’s where we see ourselves.
Ranvir Singh: In absolute term, currently Rs.4,300 crores debt that we have, so what’s your debt repayment
obligation in next six months?
Vivek Valsaraj: It’s like this, our debt repayment obligations are fairly well diversified, if that’s where your
question is heading towards and it takes into consideration whatever our investment
requirements as well, and our debt levels would be about four to four and a half times EBITDA
that’s where will be.

Seems like the above issue is both for capex and debt servicing ??

Hitesh Agarwal: If we look at the net debt-to-EBITDA ratio, it is around 4.5 times as mentioned, and you have
guided a CAPEX of around Rs.1,200 crores in the next 18 to 24 months. So, I wanted to know
like, if you could throw more color, how we’ll be able to fund this CAPEX? And second question,
could you elaborate more on the CAPEX spending across different segments?
Vivek Valsaraj: I think in a way responded to the query earlier. As I said, our overall debt schedule which we
have today is fairly well diversified. It does take into consideration of whatever our investment
needs, and also over a period of time internal accruals should be able to be sufficient for
repayment of debt as and when they fall due for repayment. So all of this has been taken into
consideration. My only request is, if you look at the net debt-to-EBITDA ratio as it stands
today… I understand where you’re coming from, but you need to understand that here obviously
has seen some impact. Going forward, we obviously expect these ratios to improve. And
accordingly, the ability to service debt go through a mix of internal accruals as well as being
able to raise debt for the ones that we’ve already retired. That should help take care of the overall
requirements of CAPEX.

LOL.

Prakash Agarwal: My question is related to the kind of debt we have today. But, is there a plan to raise further
private equity fund or something like that?
Nandini Piramal: I think right now we’re quite happy that we feel our internal accruals will pay off the debt that
we have and we don’t need to raise additional funds at the moment.

On a funny note , from the movie 3 idiots. Chatur to you: ” Hai Himmat toh average down karke dikhao”