Q1FY’23 Concall Highlights:
General Comments:
150 cr of capex in current fiscal
Higher profitability in FY’23 than previous year
Major exports to US, EU and Australia.
Export contribution can hit 50% of total sales.
New markets opening up for company since many countries adopting China + 1 policy
Aim to achieve 20% RoE. Presently at 17%
Oils:
5500/KL realization in the current fiscal
Resurgence in transformer oil demand
White Oil volume to get hit in Q2 due to higher price. Difficult to pass on
Lubricant demand might fall in long term due to electrification. Battery business acts as hedge
Battery business aims to get higher share of mechanic wallet
Conductors:
Conductors volume target of 130k to 140k tons
Conductors – EBITDA/tonne to be 17k to 17.5k
Interest cost to remain high but built into EBITDA
Cables & Wires:
Aiming for 30% growth in cable business
New e-beam machine go-live in Q3
Cable: target 2600+ cr @ 8.5% margin
Started exporting solar cables to EU
Anushakti launched in 7 states. 200 cr target for wires business
Product differentiation as follows:
Wires have 50% more current carrying capacity than those sold by Polycab and Havells
Insulation of the wire has higher short circuit resistance
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