Guidance:
- Explosives volume growth is expected at 15-20% for FY24E. Volume growth is expected at 15-20% in international markets also.
- Demand from domestic coal players (Coal India and Singareni Coal) has been healthy. Demand from domestic housing and infra market is also expected to pick up considering decline in explosives prices.
- EBITDA margins are expected to be in the range of 21-22% for FY24E.
- Realization for explosives in H1FY24 will remain soft which will then stabilize in H2FY24.
- Revenue from the defence segment is expected to double from ~| 400 crore in FY23 to | 800 crore in FY24.
- Capex will be | 750 crore for FY24E, of which | 350 crore is for the defence segment, | 150 crore for overseas operations and | 250 crore for domestic explosives segment. Capex for FY25E would be | 600-700 crore for FY25E.
- The recently acquired company (Rajasthan Explosives) has a capacity of 30,000 tonnes, which can be increased in future. The revenue was at ~| 200 crore per annum.
Brokerages expect revenue of 7687 cr. in FY24 and 9269 cr. in FY25. EPS expected is 97.3 and 123.7 for the respective years.
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