Gravita India Q1 concall highlights –
Historical performance –
5 yr revenue CAGR – 22 pc
5 yr PAT CAGR – 35 pc
EBITDA margins – consistent in 9-10 pc range
Q1 financial outcomes –
Sales- 703 vs 580 cr, up 21 pc. Volume growth – 18 pc
EBITDA – 80 vs 64 cr
PAT – 52 vs 42 cr
Volume data for Q1 –
Lead – 29.2 vs 24.7 k MT
Aluminium – 5.3 vs 3.3 k MT
Plastic – 2.7 vs 3.3 k MT
EBITDA per MT –
Lead – 20,958 vs 21,726
Aluminium – 12,823 vs 18,113
Plastic – 10,217 vs 12,512
FY 23 revenues breakup-63:37 – Domestic:Overseas
PAT-49:51 – Domestic:Overseas
Current Capacity (31 Mar)- 233 k MT ( Lead + Aluminium + Plastic + Rubber )
Projected Capacity by End FY 26 – 433 k MT ( almost a doubling )
Capex plan till FY26 ( Existing + New Verticals ) –
FY 24 – 159 + 45 cr
FY 25 – 148 + 100 cr
FY 26 – 110 + 105 cr
Total – aprox 600 cr
Company’s key strengths – deep rooted procurement networks, diversified customer network , OEM approvals
Existing production facilities in –
India – 05
Srilanka
Ghana
Senegal
Mozambique
Tanzania
Togo
Dominican Republic ( near Carribean Islands )
Existing – procurement network –
Yards, Touch points –
Asia – 5, 1000 +
Africa – 26, 450 +
Europe – Nil, 15 +
Americas – Nil, 75 +
Total scap collection – FY 23 – 205 k MT
Customers –
Asia – 305
Africa – 26
Europe – 18
Americas – 27
Current contribution from Value added products -43 pc
Projected to grow to 50 pc by FY26
Most of the lead scrap used by Gravita comes from – Telecom, UPS, automobile, data centre batteries
Current capacity (on 24 Jul) stands at 278 k MT vs 233 k MT on 31 Mar 23 -up by 22pc!!
Slight drop in profitability in Q1 vs Q4 FY23 due – lower end Aluminium prices, Disruption caused by Cyclone Biparjoy which affected Lead business’s volume growth ( lost 1.5 k MT volumes )
Segment wise capacity expansion by 2026 –
Lead- 225 k MT to 300 k MT
Aluminium-30 k MT to 48 K MT
Plastic-22 k MT to 60 k MT
New vertical-Rubber’s capacity expansion will also take place, not quantified by the company
PAT growth guidance for next 4 yrs-35 pc CAGR!!
No further dilution planned by promoters
Unlikely to go for QIP in near future
Aim to keep Debt/Equity below 0.75 throughout the next 2-3 yrs period while the Capex is on
Dominican Rebulic – company to set up plastic and paper recycling there
Company’s top 4 clients for battery collection include – TCS, Infosys, Accenture, Wipro
Disc : intend to pick up a tracking position
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