Conference call –
Moderate y-o-y, light on q-o-q, 27% margin due to cost savings in power expenses due to Solar plant, lower input cost, better productivity.
Q2 and Q3 will also be soft.
Util – 52%
Demand – 4L tons/year. Dominant share in railroad (US) – 75-80%, India 1-2%. Brazil, east Europe rest.
Modular expansion of 10K tons ? – statement of intent. As in when demand picks up. At least a few quarters away. 2027 – additional capacity. 2 years to create new capacity. Mid-24 maybe trigger that.
Quarterly passing of raw material cost
During this quarters, 2 more customers added – railroad – cannot share name
Defence – track for combat equipment… got approval recently. 5 more in works for delivery by Mar 2024.
25% lower cost that global competition
Ground engaging tools – In talks with 2 major players in globe
10% in rail road, 10% in ground engaging tools – Next 2-3 years
New plant fully automated , old one semi-automated – We do only high volumes in new plant line.
Current order book breakup – exports – 55%, domestic – 45%
October 2023 – Start US railroad supply
Q1 – Volume growth was soft. No growth.
Q1 – 10cr employee cost after revision on minimum wages from Gujarat govt. it should remain around the same for the year.
Will try and maintain margins going fwd (20%-22% base + 3-4% based on power savings etc)
50%, 60%, 75% – Expected Utilisation for next 3 years , 20% y-o-y growth
10 cr short term debt left on books. Effective 01 October, no debt on books will be left.
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