Praj Q3FY23 Concall
CBG plant the scope of Praj will be 55% of overall project which is processing unit. Yet to get details on the overall opportunity mentioned in the Budget 2023. One plant will cost around 30cr and TAM is 20k cr.
Cash on books 604cr
New order intake is not there in 2G, hoping orders in this segment after the commissioning the 1st plant in 2G segment. One plant will cost around 200M Euro
100cr investment in setting up new plant for manufacturing critical part manufacturing for Hydrogen Fuel segment. This will be additional to the brownfield expansion we already did.
Gross margins – old orders will be over in Q4&Q1. Margins will get better in FY24.
Axen MoU will come in the last process of manufacturing Aviation fuel from iso-butanol
Business strategy changed to concentrate more on margins than market share and as a result our Ethanol plant manufacturing market share are down to 50% from 65%. Due to which margin expansion can be in FY24**.**
For E20 program a balance of 400-450cr litre capacity of 1G Ethanol is yet to be created of which the addressable market for Praj will be around 6k-7kcr
Order book composition likely to change going forward to move away from being concentrated in 1G ethanol.
Servicing revenue – bio-syrup looking interesting, maintenance in 1G ethanol
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