Anup eng concall aug 2022
1…Technological tie up
=We are in advanced stages of discussions for our technological tie up for more complex and advanced designs equipment and we will be sharing the details with
you once the collaboration, the agreements has been inked.
2…Capex
A…Odhav
=We were able to make significant progress by achieving some important milestones including the new urban bay with lifting capacity 150 metric tons along with clean room facility which will allow us to tap the exotic materials segment and upgradation of existing bays.
=This facility is as think is capable of delivering anywhere about Rs. 500-Rs. because we have completed the CAPEX here in Odhav with the commissioning of clean room it is done now, so this is capable of delivering up to Rs. 550 crores and we are like said we are looking to set to grow at a CAGR of 25% here on.
B…Kheda
=We were also able to speed up the progress of construction in our new facility at Kheda which will be as the
cornerstone for future growth.
=Kheda plant once it comes on stream it is going to be done in three phases, the first phase we are likely to complete in this current financial year or sometimes in the beginning of Q4 is where the likely to have this plant closer to completion and
commissioning. This is going to add about Rs. 100-Rs. 150 crores to the revenue
=Then we are talking about going ahead the next two phases once when we are all completed we will have
almost Rs. 500 crores coming from Kheda
=At kheda plant, the total CAPEX is Rs115 crores and Rs.30 odd crores have been spent already in last year and the current year we have spent around Rs. 25 odd crores, Rs. 60 crores more to go in next 6 to 9
months.
=If we commission the Kheda plany by the turn of the financial year, by 31st of March, we should be ready for taking orders from there in the middle of the next year. Maybe, somewhere in the Q2 we will have the orders specifically for Kheda
3…Result
=As far as the low revenue in Q1 is concerned I think this is mainly
the result of selected revenue mix that we have with the most of the deliveries which are related to happen in the subsequent quarters.
=That means, now onwards. Q2 onwards will be the most
of the deliveries of our revenue mix that we have selected for the year
=This is the deliverable cycle from the client end or mapped in such a way
that the scheduled deliveries are post-June, so that is the reason that is built-up in inventory and
the working capital progress
=This is the bottom in terms of execution cycle and now it is only the upward graph that you
are expecting from this quarter.
4…Target
=Revenue
Revenue guidance of about Rs. 382 – Rs. 400 crores for FY23.
= Margin
As far as the margins are concerned, yes it is an impact of affiliations in the
material prices and that impact will continue to be there with us, however we’re confident that we will be closing the year with about 4 or 5% hit on the EBITDA margin at about 20%.
5…Specialised heat exchanger
= I would be happy to share with you that from the current order book almost about 60% would be contributed by these special designed
heat exchangers
6…Why 80% order book for heat exchangers?
=It’s a reflection of the fact that
currently the entire revenue is contributed by Odhav where we are going forward we are going to focus on heat exchangers, shell and heat exchangers and exotic equipment. So, that is the product mix that we foresee for the Odhav plant, for non-heat exchangers the process equipment
that is following the non-heat exchangers category that is columns, reactors and pressure vessels
=I think that is where we had envisaged Kheda to come in and allow us that kind of bandwidth to
deliver the best of equipment and the most credible, and most complex of those equipments in these categories
7…Why export only 10%
=It is purely a reflection of the available opportunities.
=. It’s a lot of action happening here in india with so much of investment happening in the refinery
sector, petrochemicals and chemicals. So, it is pure clear reflection of that
8…Growth rate
=We are looking growth rate, both put together at CAGR of 25% from here on, both (odhav+kheda) facilities put together.
9 …Margin
Q=with Kheda coming, where more complex and high ton range of products would be manufactured. Wouldn’t it have margins higher than your normal margins of 24, 25%
because the competition level would be less and those would be more complex products.
Ans=I think that is what we are heading towards. And that’s the whole idea as you will see we have
made rapid progress in terms of the kind of equipment that we have been delivering and every year we have seen an improvement there.
=Of course, that is something which doesn’t get reflected in the numbers that generally analysts analyze. But it is definitely something which has been very consciously being pursued by us and we have been largely successful in that. In the coming years and when Kheda is on stream definitely it will be reflected in the bottom line as well
10…Competitiors
=We are amongst top four leading
competitors in India.
=Our major competitors would be
heavy engineering division of Larsen and Toubro and izec.
11…Capacity utilization would be to the tune of about 80%.
12…Update on fermentors and bioreactors
= I can only say that the work is in progress and I mean, that’s a big, it is very high on our agenda and it’s in fact increasing the customer portfolio and also the product portfolio is something, these have been designated as key drivers of growth for us. It’s something which is very high on my agenda its work is in progress.
13…On time delivery
=We have the best track record when it comes to on-time deliveries and we
maintain our leadership position for the last six or seven years consistently. And we retain that position. We are delivering upwards of 90% on time or before time
Disc…invested
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