Few takeaways from Q4 FY23 Concall.
Q4 FY 23
BUSINESS
- Turnover increased by 66% to Rs.2,617.10 crores. EBIDTA increased by 53% to Rs.186.89crores and PAT stood at Rs.75.02 crores as compared to Rs.30.05 crores. The volume stood at264,418 tons as against 224,603 tonnes in FY2021, a growth of more than 17%. Realisation and volume led growth.
- It is headquartered in Ghaziabad with 364,000 tonne manufacturing capacity, spread across six facilities, five in Sikandrabad, Uttar Pradesh, and one in Kutch, Gujarat.
- Capex- This year the company has added 18,000 metric tonnes in the forging division and 20,000 metric tonnes in the precision tube engineering division.
- Four major verticals, which are ERW Steel Tube, Precision tube, Precision engineering and fabrication and forging.
- End User Industry- cater to many diverse sectors of the economy that include auto, infra, high speed railway, specialized infrastructure, solar, defense, aerospace and defense components.
- Engineering structures and precision fabrications- a key segment, not only in terms of our engineering expertise and passion, but also in terms of growth opportunities, provide both fabrication and services for infrastructure solutions. Be it road bridges, smart city structures, or supercritical bridges for high-speed railways corridor.
- Forging- specialize in stainless steel, duplex, carbon alloy, steel, forging exotic material and flanges, which is supplied in more than 100 grade products. Forging for defense is to start.
- Precision pipes and Auto tubes- very few players to manufacture high quality CDW tubes, segment is a substantial contributor of export revenue to the Company. Industry caters to our aerospace, nuclear power, and wind energy.
- CR coils, pipes and tubes- which is the oldest sector, manufacture ERW pipes and tubes that find application precision tubes, support structures and other infrastructure, agriculture, auto and many more.
- Utilization around 80%.
- L&T LOI work has already started, from June onwards, we can we can see the project on the floor.
- Competitor- forging Bharat Forge, very big name, they are making 10,000 tonnes. We are making 2000 tonnes.
- Target to be longterm debt free, short term debt to remain as cash is raw material.
- The increased prices will be passed on to the consumer, always with little time lag times, but they are passed through. It is a complete pass-through.
MANAGEMENT GUIDANCE
- Increasing the share of value-added products in our total product portfolio.
- Envision an order book of over Rs.1000 crore in the next 2 to 3 years from engineering structures and precision fabrications segment.
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