As Per Prabhudas Lilladher Management meet report.
- Company is planning an expansion of capacity to Precision tubes for about 60ktpa.
- Capex of Rs1.7bn is expected to get completed by 1QFY25 taking total PT capacity to 145ktpa
- About 60% of this is exported to Global OEMs as is a Cat-2 supplier
- 33 % of Exports are Precision Tubes in FY23. This can be a trigger in margin Expansion because of product mix change.
If we see the margins Precision tubes has 24 % of the revenue but contributing about 42 % in EBITDA.
Recently received Letter of Intent (About Rs 2 Bn) from L&T on the first Bullet train project in India for supply and fabrication of special bridges required for high speed tracks.
Total forging capacity is ~32ktpa from 12ktpa earlier enabling volume growth – Added one fully automatic metal pressing unit with Rs 400 mn.
This addition in the capacity also helps in increasing the margin of the company.
Need to see how this will play out. Please add/correct me if I reported any wrong numbers / information.
The above mentioned information is from the ‘Management Meet Update’ by ‘Prabhudas Lilladher’ on July 31st 2023
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