ECO Recycling Limited – Concall – 27th October 2023
Just want to add few points in from the Concall.
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The total market share is around 4 MMT and out of this 50% is in formal sector. Currently industry CAGR is 27% and ECORECO is expected to have better growth then the industry average.
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Current capacity is 7200 MTA and new capacity addition of 18K MTA is going to be live by the end of FY 24. The total capex for this additional capacity is Rs 45 Cr and company has already spend Rs 30 Cr and the additional 15 Cr will be spent in the current FY24.
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Capacity utilization: Current the company is using 30% of its total installed capacity (7200 MT) and has generated revenue of Rs 7.10 Cr in the September quarter of 2023. With the wining 5 more new clients/producers the company is expecting its current utilisation to go upto 60-70% in the coming quarters. So, the total installed capacity after the above capex is going to be 25K MT at the end of FY24 and with the expected utilisation of 60% in FY 25 the expected revenue can be around 80 Cr and Rs 100 Cr above for the next FY. So there is a good visibility in the revenue and company has ensured that its going to maintain its current margin of 30% (operating margin).
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For the battery recycling current capacity is 3K MT.
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