Here are my notes from Q3 concall
FY23Q3
- LPG expansion: Will be able to handle entire VLGC load of 40,000 tons. Planned capex of 400-450 cr. with a payback of 4-5 years. Ganesh Benzoplast will invest 100-150 cr. through internal accruals with remainder coming from debt
- Chemicals: Operating at 68-70% capacity utilization. Took 8-9 days shutdown in December. Utilization should increase to 90% in FY24. At full utilization, net profit margins can reach 20%
- Spot sales are 20%, with 80% from long-term contracts. Have 5-8% escalation clause in long term contracts
- New storage capacity at JPNT should bring in 14-15 cr. revenues in FY24 (rates will be higher at 750-800/kl vs existing rates of 400-450/kl). These should be operational by April 2023 and EBITDA margin will be 70-80%
- FY24 growth drivers: 7-8% price escalation in existing storage terminals + 12-15 cr. from new terminals + increase in utilization of chemicals division
- Customers: Cargill, Golden Agri (nonchemical industry), CJ Shah, Jubilant, Pidilite, Deepak Fertilizers (chemical industry)
- Ethanol: Installed capacity is 100 KLPD. Plant operates for 270 days. Company owns 26% stake. Ethanol rates ~ 61 per litre (so around 61 lakh revenues per day)
- Goa utilization was higher at 60-70% vs 20-25% earlier due to export of molasses
- For liquid storage tanks, have been allotted 11,500 sq.m land in Mangalore port
Disclosure: Not invested (no transactions in last-30 days)
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