Although they are talking about cash flow generation, they are unlikely to in the immediate future for the following reasons:
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CRZ (Green) invests more than 1000 cr in that green field facility. Although the first DCDA plant is getting operationalised in Q4-24, it is likely to generate revenue from Q4-Fy25 onwards. As they will be replacing DCDA sourced from China with internally generated DCDA, I am not sure if they will even save a lot in terms of cost because imported DCDA is cheaper.
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The PAP plant is kind of a long shot. They will start in that plant next year, but it will be operated in FY26, which is further away.
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For the last 2/3 years, they have been talking a lot about MUPS block. Although the block is operational, they are not able to generate much revenue from it yet for one reason or another. They do not even talk about it in their con call.
Historically, Granules has always relied on debt to fund its expansion. API is a capex-heavy business where they need to invest heavily to create capacity and needs a lot of money for working capital for FD.
Hence, their dependence on debt will not reduce; in fact, it may increase as they invest even more in green chemistry projects in CRZ.
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