• Kheda facility is ready and commercial production to start by Aug 2023. FY24 revenue expected from Kheda is around 60 cr. and to reach 150 cr. by FY25. Capex in FY23 is 75 cr and another 45 cr. in FY 24 for this facility. Phase 2 plan to be announced in next financial year.
• Orderbook by end of March 2023 is 530 cr. and they have got additional 150 cr. worth orders in FY24 so far.
• Expect 30% revenue growth at 22% margin. Upcoming Q1 & Q2 might have lower margins due to past high raw material cost, but Q3 & Q4 to be higher with yearly margin at 22+.
• Current export at 19%, & they are targeting 30% in FY24 and 40% in FY25.
• Targeting 1000cr revenue by FY27 & need to start on more complex & proprietary products, likes of duplex, stainless steel instead of carbon steel. They are already doing some of these and the new facility should help. There was also a mention of Titanium based product enquiries but they are yet to get an order on this.
• They are in the top 4 among competition, but they didn’t name names.
• Oil & Gas are predominant customers, with Pharma & Spec. chem picking up. Clean room availability should aid them moving forward with these industries.
Please correct me if there are any mistakes, thanks.
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